The Textile Advisory Group (TAG) has commissioned us for a major piece of research on a groundbreaking project aimed at advancing sustainable textile regulation and product stewardship in Aotearoa New Zealand. The research, funded by the Clare Foundation, explores the significant economic and environmental benefits of aligning New Zealand’s textiles industry with the European Union’s Scope 3 emission requirements.
The research provides a tool to understand the implications of New Zealand’s Free Trade Agreement (FTA) with the European Union, which came into effect in May 2024. The FTA requires demonstrable progress on climate action in line with the Paris Agreement, signaling that the local textiles industry may soon need to comply with EU frameworks such as the Strategy for Sustainable and Circular Textiles and the Ecodesign for Sustainable Products Regulation (ESPR).
About 220,000 tonnes of textiles are sent to landfill in New Zealand each year. Implementing an Extended Producer Responsibility (EPR) scheme would reduce carbon emissions, landfill and waste management costs, create jobs, drive investment and innovation in recycling infrastructure, while encouraging sustainable design and responsible production – delivering both economic and environmental benefits.
Driving policy through research
Our study will employ a social cost-benefit analysis to assess the annual costs, opportunities, and incentives of a regulated versus non-regulated approach for businesses and consumers. The findings will provide robust, evidence-based insights for policy makers, highlighting the potential advantages of a circular economy model for Aotearoa New Zealand’s textiles sector.
Building on prior research that has identified shortcomings in the current textiles market, the study will compare the economic impacts of high-emission practices with those of a regulated product stewardship model. This model would make producers responsible for their products throughout their lifecycle, incentivizing sustainable, circular production in line with EU regulations.
Lifting the veil on circularity
The study will address critical questions, including:
- What financial advantages or disadvantages would businesses face under new regulatory requirements?
- How might regulation impact domestic competition among New Zealand textile businesses?
- What opportunities exist within current infrastructure to collect, sort, repair, and recycle textiles?
- Could a regulatory environment attract local and international investment in New Zealand’s textiles sector?
- How could long-term environmental gains further strengthen the case for regulation?
Duncan Wilson, Director of Eunomia NZ said: “This is a chance to drive meaningful policy change in the textiles sector and ensure that New Zealand is prepared for global trade shifts and environmental obligations. Eunomia has nearly 25 years of experience shaping economic and environmental policy across the globe, and this is an exciting opportunity to boost the local textiles industry and help strengthen New Zealand’s position as a responsible trade partner and leader in ethical sustainability.”
Textile Advisory Group spokesperson Meredith Dawson Lawry said: “New Zealand’s textiles sector stands at a pivotal moment. By proactively exploring the benefits and challenges of aligning with leading international sustainability standards, we have an opportunity to future-proof the industry, open doors to new markets, and reduce our environmental impact. The Textile Advisory Group project with Eunomia brings together expertise from across the value chain—manufacturers, retailers, recyclers, and policy makers—to ensure that any regulatory approach is both practical and ambitious and delivers long-term value for businesses, communities, and the environment.”
