New research from Eunomia has found that a regulated product stewardship (RPS) scheme for textiles in New Zealand could offer a range of economic, environmental, and social benefits, such as reducing the proportion of textiles sent to landfill from 78% today to just 4% by 2038 under a high-ambition scenario.
Commissioned by the Textile Advisory Group and funded by the Clare Foundation, the study examines how a regulated approach to textile stewardship could support a more circular economy in Aotearoa New Zealand. The proposed scheme would shift responsibility for managing textiles at end of life from taxpayers to producers, while incentivising more sustainable product design, reuse, repair, and recycling.
Textiles are attracting increasing attention globally due to their environmental footprint and social impacts. While New Zealand has implemented some voluntary and regulated product stewardship initiatives, it does not currently have dedicated sustainability requirements for textiles comparable to those emerging in the European Union or US.
Using a cost-benefit analysis, the research assessed the economic, environmental, and social impacts of introducing an RPS scheme. Obligated parties would include brand owners, importers, and online marketplaces, with eco-modulated fees designed to reward products that are more durable, repairable, and recyclable.
The analysis found that under a modest ambition scenario, the scheme would generate a net benefit of $98 million, rising to $602 million under a high-ambition approach. Meanwhile, employment across the sector could grow by up to 6% by 2038, while carbon emissions could be reduced by up to 10.8 million tonnes – equivalent to taking 2.3 millions cars off the road for a year.
Katy Chamley, Consultant at Eunomia, said: “Much like EPR schemes introduced elsewhere, a well-designed regulated product stewardship scheme would incentivise better product design while providing funding for circular systems. The policy would help drive investment in textile reuse and recycling infrastructure, support circular economy outcomes and create new opportunities for New Zealand businesses.
“Our research shows that the overall benefits outweigh the costs, reducing pressure on local authority waste systems and increasing the value recovered from used textiles.”
Read the full report, Regulated Product Stewardship for Textiles in Aotearoa New Zealand, on the Eunomia New Zealand website.