The much-awaited PLI scheme for textile industry was announced last week by government of India, and the intent is clear--the government plans to bring economies of scale in more upstream segments of man-made textiles supply chain and technical textile segment. Added to that, the initiative will generate employment opportunities for the industry. A report. Government of India’s much awaited Production Linked Incentive (PLI) scheme for the textile & apparel industry was announced last week with a total planned outlay of ₹10,683 Crore. The scheme is envisaged to provide much needed push to bring economies of scale in production of MMF apparel, fabrics and technical textiles in India, as well as to generate employment opportunities in the textile industry.
Details of the scheme
The PLI scheme, as the name suggests, has sales (revenue) and investment criteria for companies to avail benefits. The scheme will provide incentives during the period FY 2025-26 to FY 2029-30, while performance of the participants will be evaluated for the previous years. A gestation period of two years FY 2022-23 and FY 2023-24 has been given for firms to begin production. Only a manufacturing company registered in India will be allowed to participate in the scheme provided that the company is willing to invest a minimum amount and is able to generate a minimum revenue during the scheme period. The scheme provides for two brackets for this eligibility criteria.
1) Minimum capital investment of ₹300 crore to produce goods notified in the scheme along with a minimum revenue generated of ₹600 crore per year during the period of the scheme. On reaching minimum revenue, an incentive of 15 per cent will be provided for that year.
2) Minimum capital investment of ₹100 crore to produce goods notified in the scheme along with a minimum revenue generated of ₹200 crore per year during the period of the scheme. On reaching minimum revenue, an incentive of 11 per cent will be provided for that year. However, under both the criteria, companies will be given incentives in the subsequent years only if they can generate a minimum 25 per cent growth in revenue from previous year. The incentive rate will also be reduced every year from year 2 onward by 1 percentage point. There are certain other provisions for selecting participants and calculating incentives which are mentioned in the ministry’s notification.
1) Only projects which involve processes and operations to enhance value by not less than 60 per cent in integrated fibre/yarn to fabric, garments and technical textiles will be selected.
2) For proposals involving independent fabric processing, the minimum enhancement value is 30 per cent.
3) A cap of 25 per cent 10 per cent on revenue growth is put in place for calculation of incentives from year 2 onward. For calculation in year 1, a cap of 2 times the investment 10 per cent has been put in place. Additionally, smart textiles have also been included in the notified products list. Since, no HS code exists for the same, the notification mentions that a new HS code need to be created for this category.
Snapshot of India’s share in the notified categories The three graphs below show India’s share in the broad categories notified in the scheme relative to the competitors. The graphs only cover the HS codes that have been included in the scheme to give a better perspective of India’s relative position in these segments. India has the largest share in MMF fabric exports (23.5 per cent), next to China, thanks to the vast amount of domestic supply of raw materials. The exports are still only half of what China supplies and the PLI scheme will likely bring a change in this share for India. In MMF apparel exports, India has a relatively smaller share (2.3 per cent) which is reflective of India’s position in apparel market as well. For technical textiles exports, India’s share is yet to pick up (at 3.1 per cent in 2019), and the PLI scheme will ensure tremendous boost to production capacity in India for both these segments.
With a major boost to the textile industry through the PLI scheme, it is expected that the industry will receive fresh investments worth ₹19,000 crore and an additional production turnover of more than ₹3 Lakh crore over the five years of the scheme. As a result, India’s production capacity and share of exports in the notified HS codes and broad segments is expected to see a tremendous increase over the next decade.
Source: Fibre2 Fashion
Bihar is all set to surge ahead towards promising growth trajectory for the state through Textile Policy and Ethanol Production Promotion Policy. JSW, Micromax and Essar are the frontrunners in the current brewing investment climate of the state, Syed Shahnawaz Hussain, Minister, Department of Industries, Government of Bihar, said today. At the CII East India Summit, the Bihar State Session set fresh standards of profitable niches for investors keen on pushing boundaries for flow of investments in the state. Mr Syed Shahnawaz Hussain enlightened upon the potential of Ethanol Policy as well as Textile Policy adding on to the states' economic fortune, scaling new heights and setting new standards in terms of EoDB and attracting investments. The success story of Bihar in East is well implied by an export figure worth Rs 11,190.72 Crores in 2020-21, he said. " We have already received 475 investment proposals for Bihar, worth Rs 35019 Crores,” mentioned Mr Hussain. The Government considers Textiles, Apparel and Leather as a high priority sector, along with Ethanol Production, Oxygen Manufacturing , ITeS and Food Processing. According to Mr Hussain, Bihar has indeed bagged the trophy of being the first state in proposing Ethanol Promotion Policy, that would allow investors to directly make ethanol from maize, molasses, broken rice and rotten grains. Currently, the state generates an output of 12,000 crore litre ethanol per year and is considered the fifth highest ethanol-producing state in the country. Being a state to retain double digit growth rate despite pandemic, Bihar has essentially counted in JSW, Micromax and Essar as forerunners in the current brewing investment climate of the state, he added. Projects are now approved on a war footing and are approved as “fast as in 7 hours, “ the Minister said. Speaking at the conference, R S Srivastav, IRS, Investment Commissioner, Government of Bihar mentioned that the Amritsar Kolkata Industrial Corridor ( AKIC ), IT & ESOM Park in Begusarai, Mega Food Park in Muzaffarpur and Inland Container Depot, Bihita as major upcoming investment projects of the state. The state offers cent percent exemption from Stamp Duty and Land Conversion Fees, cent percent reimbursement of electricity duty on power inclusive of captive power for a period of 5 years, as well as that of admitted SGST and Skill Development Subsidy of upto Rs 20,000 per employee under Bihar Skill Development Mission. Brijesh Mehrotra, IAS, Additional Chief Secretary Department of Industries, Government of Bihar, threw light on the proposed Textile Incentives of Bihar, in terms of Freight Reimbursement Incentive @ 50%, Interest Subvention @ 10% and Capital Investment Subsidy upto 35%. He termed the Policy as a Single Overarching Consolidated Policy for traditional textiles, modern textiles, leather and footwear to gain competitive advantage and secure inclusive growth in the sector. He also mentioned about upcoming logistics policy, plastics policy, Electronic System Design & Manufacturing (ESDM) policy, Pharma policy and Export policy which will boost further investment. Adding on to the discussion, Pankaj Dixit, IAS, Director Department of Industries Government of Bihar, highlighted strategic advantages in terms of administration and strategic location. The Golden Quadrilateral & dedicated freight corridor passing through Gaya along with National Waterway 1 passing through Patna plus 3 Inland container depots play an integral role in strengthening the Logistics Infrastructure of the state, he said. The Government efforts in boosting Bihar Economy is indeed worth applauses and the state is sincerely looking forward to promising response from industry to step up a few more miles closer to the vision, Mr Mehrotra further added. The 1st ever East India Summit 2021 is taking place from 28 September till 7 October. This is bringing together a wide audience and participants from across the world. CII would be focusing on integrating the growth potential of the 5 states comprising Bihar, Chhattisgarh, Jharkhand, Odisha and West Bengal and channelize the strengths of the region towards “Building Eastern India” through integrating the 5 “I”s – Image, Innovation, Infrastructure, Investment and Inclusiveness. EAST INDIA SUMMIT aims to Create a Sustainable Infrastructure Roadmap for East & North East India – Linking Global Investments with Special focus: Port, Railways, Aviation & Future Mobility. Important countries such as Australia, Bangladesh, Germany, S Korea, USA, UK are the Country Partners and six states including Assam, Jharkhand, Odisha, Mizoram, Tripura, West Bengal are state partners for the initiative. Multilateral agencies like ADB, JAICA, AIIB, World Bank, and various chambers of commerce and trade are also invited to be present at the Summit to understand the scope of infrastructure within the states in the East and the North East. The summit is looking at multiple issues and opportunities within States and Sectors for setting out the path for future dialogues between policy and decision makers, stakeholders and industry.
Source: United News India
And therefore, for a company to flourish and expand in its area of operation, the role of company secretary to make it easy, to make it ready for the company to follow the guiding principles that you might advice them with, is going to make a lot of difference," Sitharaman said. Finance Minister Nirmala Sitharaman on Monday said the advise given by company secretaries to businesses is going to make a lot of difference as only "well-managed" companies following good governance practices are attracting investors. She also said Indian companies have done extraordinarily well in the last year with regard to attracting investments because of their transparency and better compliance. "In the last few years, the rate at which compliance-related issues have become the main cause for companies to fail to live up to the expectations of investors, well-managed companies, companies which are more transparent in its functioning, companies which have good governance principles, board driven principles, are attracting lot of investors, not only big ticket investors, but also small retail investors. "And therefore, for a company to flourish and expand in its area of operation, the role of company secretary to make it easy, to make it ready for the company to follow the guiding principles that you might advice them with, is going to make a lot of difference," Sitharaman said. She was addressing an event to mark the 53rd Foundation Day of the Institute of Company Secretaries of India (ICSI). She said at a time when the government is trying to remove archaic laws and bring in amendments to reduce penal provisions in the Companies Act, the scope of work of a company secretary is widening. "Between 2020 and today, you see a lot of retail investors getting interested in stock market in India... the money is flowing from retail and big ticket investors all towards well-managed companies... "...lot of investors, retail investors going into the market, companies drawing lot of funds from abroad, are all possible only because you (company secretaries) are at it and doing a good job of advising the companies to follow better compliances," the minister said Stating that it is the company secretaries who made it possible for businesses in the last two years to showcase their strengths before potential investors, Sitharaman said this would be an interesting phase for all those who are getting into the profession now with newer challenges in the form of technology.
Source: Economic Times
Economic Affairs Secretary Ajay Seth on Monday said India has got on the path of economic recovery aided by various government reforms in the last seven years under Prime Minister Narendra Modi's leadership. Notwithstanding the pandemic, he said, the government continued with the reform process and many strategic reforms were announced even during Covid-19. Economic Affairs Secretary Ajay Seth on Monday said India has got on the path of economic recovery aided by various government reforms in the last seven years under Prime Minister Narendra Modi's leadership. Notwithstanding the pandemic, he said, the government continued with the reform process and many strategic reforms were announced even during Covid-19. "During the pandemic period of the past 18 months, it was not just the management of the impact of the pandemic, starting from a health crisis spilling over to the real economy and thereafter some impact onto the financial sector. Managing each of those, but with very strong emphasis on stepping up the reforms, so that the economy can bounce back with a fast growth rate, and also the potential growth rate can be built," he said. "The country is on the path of recovery," he said in a virtual event organised by industry body Ficci. Talking about one of the challenges, Seth said, the credit offtake has moderated in the last 18 months due to pandemic. "There are challenges that in the past 18 months because of the lack of private investment demand, the credit offtake has been rather moderate. That's an area where further work is needed," he said. The focus of the government is on inclusive development, he said adding that the government has launched various schemes targeted to support persons, entities with weak economic capacities, not just in the pandemic period, but in the past seven years. He spelled out some of the schemes the government has launched like the PM KISAN Yojna for income support for farmers, safe shelter scheme PM Awas Yojana, safe drinking water through Jal Jeevan Mission and electricity for all, etc. With regard to financial sector reforms, he said the introduction of Insolvency and Bankruptcy Code has led to resolution of Rs 2.4 lakh crore of stressed assets, while FDI and FPI liberalisation has bolstered the confidence of foreign investors in the Indian economy. On the infrastructure development, the secretary said the two major plans -- National Infrastructure Pipeline envisaging Rs 111 lakh crore of investment, supplemented by National Monetisation Plan to the extent of about Rs 6 lakh crore -- have been announced. These coupled with a Gatishakti vision of the Prime Minister would lead to seamless movement of goods and services and generation of employment opportunities in the entire country, he said. "That is one area where we are particularly working on in the finance ministry with other ministries and state governments (as to) how do we implement on the ground these two major plans in the overall vision of Gatishakti," he said. He urged the industry to participate in the infrastructure development programme of the government. The infrastructure spending at the moment is 5-6 per cent of the GDP which should be doubled, he said, adding that is possible only through a partnership between the industry and the government.
Source: Economic Times
Higher e-way bills generation is reflected in higher GST revenues. GST collections came in at Rs 1.17 lakh crore in September (largely August transactions), up 23% year-on-year and 4.5% month-on-month. E-way bill generation has been registering a steady rise since June after falling to below four crore in May E-way bill generation for goods transportation under the Goods and Services Tax (GST) system came in at 6.79 crore September, the highest since the start of the current financial year, as economic activity gathers pace ahead of the festive season. E-way bill generation has been registering a steady rise since June after falling to below four crore in May, when the second wave of the Covid-19 pandemic was at its peak. The September number was 70% higher than May and 3% more than August. Daily e-way generation rose 6.5% month-on-month to 22.65 lakh in September compared with 21.26 lakh in August. In the first three days of October, 52.69 lakh e-way bills were generated, showing a daily generation of 17.56 lakh. Going by the recent weekly trends, the daily average is expected to rise in October when data for the full month is captured. Thanks to the easing of lockdowns, e-way bill generation by businesses rose to 6.59 crore in August from 6.42 crore in July and 5.5 crore in June. It was 7.12 crore in March before the second wave o hit the economy in April-May. Higher e-way bills generation is reflected in higher GST revenues. GST collections came in at Rs 1.17 lakh crore in September (largely August transactions), up 23% year-on-year and 4.5% month-on-month, signalling a sustained pick-up in trade and commerce. Data released separately said the Nikkei manufacturing PMI rose to 53.7 in September from 52.3 in the previous month. The average monthly gross GST collection for the second quarter of the current financial year has been Rs 1.15 lakh crore, which is 5% higher than the average monthly collection of Rs 1.1 lakh crore in the first quarter of the year. “This clearly indicates that the economy is recovering at a fast pace. Coupled with economic growth, anti-evasion activities, especially action against fake billers, have also been contributing to the enhanced GST collections. It is expected that the positive trend in the revenues will continue and the second half of the year will post higher revenues,” the ministry of finance said in a statement on October 1.
Source: Financial Express
The shortage of coal supplies, toughening emissions standards and strong demand from industry have led to record rise in coal prices in China triggering widespread curbs on usage. Southern Gujarat Chamber of Commerce and Industry president Ashish Gujarati Saturday said that due to the power crisis in China there is a big business opportunity for textile industry players in Surat. Gujarati was speaking at a meeting organized by the SGCCI with the experts and textile industry players on the topic of “Power crises in China, an advantage for Surat and India”. The shortage of coal supplies, toughening emissions standards and strong demand from industry have led to record rise in coal prices in China triggering widespread curbs on usage. “Due to the power crisis in China, a big business opportunity has come out for all the industries of Surat, South Gujarat, and entire India, and time has come to grab it. Those industries running with the raw materials imported from China will have to start preparations as there would be a shortage of supply. The industry people should also work to find out other sources of the supply of raw materials,” Gujarati said. He added, “China is also a major exporter of apparel and textiles to the world. Due to the reduction of coal production, the power rates will go high up between 30-40 per cent, which will also lead to rise in production costs. The power crisis of China will benefit to many industries in India and especially the textile industry of Surat.” Business management consultant Haresh Calcuttawala said, “Majority of the power plants in China are coal-based, and the Chinese government has reduced coal production. Their government also had fixed power rates and the condition has become difficult for those involved in power productions.”
Source: Indian Express
Notwithstanding the recovery in electricity demand, the all India average thermal PLF level is likely to remain subdued, at below 60 per cent in the current fiscal. Thus, the sector outlook on the thermal power generation segment is negative, ICRA said. Energy demand growth outlook for 2021-22 is revised upwards from 8 per cent to 8.5 per cent by NSE 0.05 % . As per ICRA, low base last fiscal and faster-than-expected recovery in demand after the second wave of COVID-19 seen in April and May 2021 have supported this outlook upgrade. The all-India electricity demand during the period from April 2021 to September 2021 has increased by 12.7 per cent to 707 billion units (BU) on a year-on-year (YoY) basis supported by a lower base, improvement in economic activity and lower than normal monsoons leading to higher demand from the agriculture segment during July and August 2021, an ICRA. The energy demand in H1 FY2022 (April to September) also, remained higher by 2.9 per cent against the same in H1 FY2020 (pre-COVID), led by relatively sharper recovery in the energy demand as reflected from 8.4 per cent growth in Q2 FY2022 (July September) against Q2 FY2020. Girishkumar Kadam, Senior Vice President and Co-Group Head - Corporate ratings - ICRA, said, “Based on the energy demand growth trends seen during last six-month period, the electricity demand growth outlook for FY2022 is revised upwards to 8.0 - 8.5 per cent, supported by low base effect in FY2021 and faster than expected recovery in demand post COVID second wave. “Nonetheless, any emergence of potential third COVID wave and consequent lockdown restrictions remains a monitorable. In turn, the all-India thermal plant load factor (PLF) level is estimated to show a modest improvement to about 58.5-59 per cent in FY2022, against the earlier estimate of 57-58 per cent.” Notwithstanding the recovery in electricity demand, the all India average thermal PLF level is likely to remain subdued, at below 60 per cent in the current fiscal. Thus, the sector outlook on the thermal power generation segment is negative, ICRA said. This is also because of the lack of visibility in signing of new power purchase agreements (PPAs) for thermal independent power producers (IPPs) and an upward pressure on cost of power generation with the strengthening in fuel price levels and tighter environmental compliance requirements. As a result, a sustained improvement in electricity demand growth as well as thermal PLF level (above 60 per cent) remain the critical factors to monitor, from the outlook perspective on thermal generation. The spot power tariffs on day ahead market of the Indian Energy Exchange witnessed a sharp recovery to Rs. 3.7 per unit in 6M FY2022 from about Rs. 2.8 per unit in FY2021 led by better than expected recovery in electricity demand and coal supply constraints witnessed in August and September 2021. With expected normalisation in domestic coal availability, the average spot tariffs are likely to remain at about Rs. 3.5 per unit in the near term. This is still relatively higher than historical average level of Rs. 3.2 per unit over the last 10-year period. Further, spot tariffs remain inherently volatile as seen in the past, depending on the fuel availability, the renewable energy generation and demand level. Vikram V, Vice President and Sector Head - Corporate Ratings, ICRA, added, “Delays in tariff determination process by state regulators continues to remain an area of concern given that tariff orders have been issued for utilities in only 19 out of the 28 states for FY2022 so far and the tariff hikes remain modest.” Tariff orders have not been issued in the key states such as Rajasthan, Telangana, Tamil Nadu and West Bengal. Given that coal as a fuel contributes about 70 per cent of all India energy generation, distribution utilities remain exposed to an upward pressure on cost of power purchase, he added.
Source: Economic Times
Welspun India said its new global collection "expands the future of sustainable textiles in the important area of home care, where innovation is of the utmost importance". Home textiles major Welspun India on Monday said it has partnered with DuPont Biomaterials to launch a home textile range, including bath towels and bedsheets, made with bio-based materials. The collaboration brings together cotton and DuPont's Sorona brand of fibres -- made from 37 per cent renewable plant-based ingredients that offer a high-performing, responsibly sourced material option -- to create home textile fabrics, the company said in a statement. Fibres made with Sorona polymer are currently used in various apparel applications, including athleisure and athletic wear, insulation, swimwear, outerwear, suiting, faux fur and more, it added. Welspun India CEO and Joint MD Dipali Goenka said, "Our collaboration with the DuPont Biomaterials team is a significant step towards our commitment to bringing value-added products to address tomorrow's challenges through a sustainable approach without compromising on performance and value". While Sorona fibres have been used in the fashion apparel segment for some time, she said, "By staying close to our customers, we realised that there is potential to utilise the functional benefits of Sorona fibres in the home textile segment. As a first step, our innovation team developed towels and bedsheets, incorporating an array of key functionalities and we hope to develop new products and other functionalities in the future". On the company's tie-up with Welspun India, DuPont Biomaterials Global Business Director Michael Saltzberg said, "By combining the innovation and performance attributes offered by our Sorona fibre with their experience in this market, we are delivering on our commitment to create more sustainable products". Welspun India said its new global collection "expands the future of sustainable textiles in the important area of home care, where innovation is of the utmost importance". Partially plant-based Sorona polymer delivers the performance needed and yet is sustainable in nature, it said, adding the polymer offers "technical and performance benefits, including incredible softness, stretch and recovery, and inherent stain resistance without the need for topical treatments".
Source: Economic Times
This year, the annual magnum opus of India Trade Promotion Organisation (ITPO), the 40th edition of India International Trade Fair(IITF)will manifest its theme “Atmanirbhar Bharat” with a focus on economy, export potential, infrastructure supply chain, demand andvibrant demography. Inspired by a great vision of the Prime Minister of India, Shri NarendraModi, the event is organised as integral part of “ AzadiKaAmritMahotsava”- commemoratingthe 75thyear celebration of India‘s Independence in newly built halls of International Exhibition-cum-Convention Centre (IECC) as well as in the existing halls at Pragati Maidan, New Delhi from November 14 to 27,2021. The fair will be organised as per the preventive measures to contain spread of the pandemic. The fair also manifests undying spirit of business fraternity who faced tremendous challenges due to the pandemic. Significantly, the theme reflecting their determinationto showcase excellence of brands and create a new opportunity for growth and attain selfreliance in sectors like agriculture, micro, small & medium enterprises (MSME), power, tourism, etc. IITF with B2B and B2C components is one of the largest integrated trade fairs in SouthAsian region. The format of IITF has business; social, cultural and educational dimensions that are weaved together where visitors and exhibitors, media persons, marketing professional, social activists, NGOs etc. all converge to explore their objectives. Domestic as well as overseas buyers source their needs. A number of Government organisations and departments use this platform to spread awareness about their programmes and policies among the public. As such, almost all States and Union Territories of India participate in this mega event, which depicts the picture of ‘MiniBharat’. Apart from trade and industry related conference and seminars, the fair offers branding opportunity on large LED screens installed at strategic locations in fair premises. Branding sites available at specific locations inside Pragati Maidan on payment basis (for more details visit www.indiatradefair.com/iitf ). Besides, other major attractions and promotional facilities include: Mobile application, investment and joint-venture opportunities, transfer of technology option, start ups and SMEs cultural and State Day celebrations. Extensive arrangements are being made to make the fair convenient for participants and visitors. These include: Protocol facility, media centre & International business lounge, wheelchairs for specially-abled persons (Divyang), sale of entry tickets at selected metro stations, Bank and ATMs, fire service station, ambulance & first-aid facilities, food outlets & States’ Cuisines, limited parking for participants/exhibitors is available this year and free entry on all days of the fair to Senior Citizens/specially-abled persons from any gate on production of valid government ID stating date of birth. Persons accompanying will have to purchase entry tickets.
Source: PIB
The Association of Southeast Asian Nations (ASEAN) is set to resume free trade agreement (FTA) talks with the European Union (EU) after negotiations were suspended in 2009. The EU Commission on Trade has agreed on a joint trade and investment programme, said Thai vice minister for commerce Sansern Samalapa, who acted as the chief negotiator at the September 8-9 ASEAN Economic Ministers (AEM) virtual meeting with the EU, the United Kingdom, Switzerland and Russia. The two sides agreed to prepare negotiations for an ASEAN-EU FTA and hold joint expert meetings to build mutual understanding on new trade issues like e-commerce, government procurement and sustainable trade and development, according to media reports in the region. ASEAN and EU ministers also met representatives from the EU-ASEAN Business Council, which suggested ASEAN should reduce non-tariff trade measures, promote the same product standards in both regions, protect intellectual property rights, promote environmentally friendly energy, use data management for the digital economy and allow cross-border travel permits, said Samalapa. He said Thailand has emphasised the importance of an ASEAN-EU FTA as it would create a favourable environment for trade and investment in the region. The EU started FTA negotiations with ASEAN in 2007. After negotiations were suspended in 2009, the EU decided to pursue bilateral trade agreements with nations. Six Asean members have begun talks on bilateral FTAs with the EU: Singapore and Malaysia in 2010; Vietnam in 2012; Thailand in 2013; the Philippines in 2015; and Indonesia in 2016. FTAs are in effect with Singapore and Vietnam, ratified in November 2019 and August 2020 respectively. Negotiations are continuing with Indonesia, while talks are on hold with Malaysia, the Philippines and Thailand.
Source: Fibre2 Fashion
Sustainability labels must be accurate and complete to empower consumers to make informed choices about the clothes they wear. The EU is shifting to a climate-neutral and circular economy where products are designed not only to be more energy-efficient, but more durable, reusable, repairable, and recyclable. This transition is much needed in the textile industry given its significant environmental impact. Rightfully, the European Commission identifies textiles as a priority sector to meet the EU’s goals as outlined in the European Green Deal and the New Industrial Strategy for Europe. Inspired by successful examples in other sectors, the Commission is considering introducing mandatory EU sustainability labelling for clothing and footwear. The intent is to offer consumers clear and reliable information about the green credentials of the clothing and footwear products they buy, in turn encouraging producers to make products with less environmental impact. Consumer clarity is especially important in the age of pervasive greenwashing. Making a clear and comprehensive label for consumers throughout the EU seems like a great step forward in Europe’s green transition. But there is a problem. The method the Commission plans to use to measure the environmental impacts of a garment, as it stands today, is incomplete. The method the Commission plans to use to measure the environmental impacts of a garment, as it stands today, is incomplete. Set to become the foundation of this labelling system, the Product Environmental Footprint, or PEF method, was created in 2013 and does not reflect the current goals and thinking behind the EU’s own sustainability and circularity strategies. Crucially, the method in its current form does not account for critical negative environmental impacts at the forefront of EU policy development, such as the adverse effects of microplastic pollution or the full environmental cost of fossil fuels to produce textile fibres. Equally important is the scoring system’s failure to reward positive environmental impacts that can help the EU achieve its circularity goals, such as renewability, biodegradability and recyclability. Only products made from renewable raw materials that can be grown again year after year and which, at the end of life, return their nutrients to the soil for use again are sustainable. While all garments shed microfibres through laundering and daily wear, only synthetic garments made from fossil fuels discharge microplastic fibres, indefinitely polluting terrestrial and marine environments, as well as the human food chain. Scientific studies have shown that a typical 5 kilogram wash of fossil fuel-based garments can release as many as 6 million microplastic fibres. However, the environmental impacts of microplastic pollution, as well as the health impacts of contaminated food chains and ecosystems, are not considered in the PEF methodology. In the absence of any negative score for microplastics, well intended consumers could be misled and make purchasing decisions which are more, rather than less, harmful to the planet. At a time when many industries are recognizing the impacts of and moving away from fossil fuels, the full environmental impacts of the formation of crude oil — a base material for producing synthetic fibres — are not accounted for in the PEF methodology. We believe that textiles made from fossil fuels should not be measured as more sustainable than textiles made from renewable sources. PEF accounting for synthetic fibres commences at extraction at the well-head, rather than the raw material formation. By contrast, all the impacts of forming natural fibres on farms are fully taken into account, including greenhouse gas emissions, as well as land and water use. With the largest impact of textiles often occurring during the fibre formation stage, this inequitable comparison means that clothing made from natural fibres is expected to score worse than clothing made from fossil fuel-based fibres. We believe — and think both the European Commission and consumers would agree — that textiles made from fossil fuels should not be measured as more sustainable than textiles made from renewable sources. Our primary focus is on improving the label’s assessment of environmental impacts, but another obvious omission is the consideration of social impacts throughout the textile supply chain. The methodology does not attempt to validate that corporate social responsibility commitments are met. Simply put: PEF is incomplete and outdated. So much more is known about our impact on the earth’s natural ecosystems than 10 years ago, and we need to build that knowledge into meaningful labels, or we risk losing the confidence of consumers. A credible sustainability label has the potential to make the industry greener and empower EU consumers to make informed choices. EU policy makers have a crucial role to play in ensuring the PEF methodology is robust and complete and considers the full impacts of a garment’s lifecycle. Doing so will help the EU to continue setting the global standard for green policy making and sustainability labelling, with the potential to become a global norm and incentivize more sustainable practices around the world. We — an international coalition of organizations — stand ready to work with the European Commission and the European Parliament to find the right solutions, to develop a clothing sustainability label that reflects the latest science, to inform and empower consumers to make more sustainable choices — in other words to “make the label count”.
Source: Politico
Xi may have avoided a winter power emergency for now, but only serious, structural economic reform will prevent a future meltdown. The cash crunch faced by property developer China Evergrande Group in recent weeks has drawn comparison to the 2008 financial crisis, when seemingly minor turbulence in real-estate finance blew up into an economy-destroying hurricane. There’s an even better candidate for a 2008-style emergency in China right now, though: The energy crunch that’s sent coal prices soaring over $200 a metric ton and cut power to industry and homes across the country. The vast state-owned power generators that keep China supplied with electricity — the parents of listed subsidiaries China Shenhua Energy Co., Huadian Power International Corp., Huaneng Power International Inc., Datang International Power Generation Co. and China Power International Development Ltd. — are in a similar position as U.S. mortgage giants Fannie Mae and Freddie Mac. Like Fannie and Freddie, they’re partially state-owned entities whose job is to use private finance to fund public-policy goals — in the U.S. case, mass homeownership; in the Chinese case, cheap power.
Running Out
Inventory levels at China's major utilities have been falling and falling Source: Bloomberg Such entities depend on an implicit guarantee that they’ll always be bailed out by the government if things get too tight. The questioning of such a backstop after Lehman Brothers Holdings Inc. was allowed to fail in September 2008 is one key reason why the world tipped into financial crisis. Right now, it’s the precise nature of China’s promise to its power companies that’s up for debate. The long prelude to the current situation can be seen as a test of that support. With coal providing about two-thirds of China’s electricity, generators are caught between the regulated prices at which they sell power and the market-determined cost of their fuel. That became a problem earlier this year after domestic coal prices started to escape the 520 yuan ($81) a ton to 570 yuan a ton band that Beijing targets. Profits at some generators fell 70% from a year earlier in the first half. One way to avoid the rising price of coal is to buy less, and depend on the reserves built up when it was cheaper. That appears to be what’s been happening this year, with endusers’ inventories of soot slumping in July to less than a quarter of their level a year earlier, even as they held steady at mines and ports — an indicator that it was power and industrial end-users who were eating through their stockyards.
Taking Stock
China's inventories of coal held by end-users are running out Source: Bloomberg That’s a risky strategy. If there’s one thing that will cause the price of a commodity to spike, it’s low inventories. By running down their stocks, generators have been counting on the government to release its own reserves, and perhaps loosen restrictions on mining and imports, to flood the market and avert the sort of spike in coal prices that has unfolded in recent weeks. “The second half of this year is expected to be subject to certain market risks,” Huaneng warned in August. “Overcapacity production is officially criminalized, forcing mines producers to strictly comply with approved capacity amount, limiting potential increase of production.” It’s telling that, barring a few minor reserve releases, the government has held firm for so long. Decarbonization and a crackdown on under-regulated industries are central planks of President Xi Jinping’s policy platform. Officials have shown great reluctance to abandon those objectives just because generators are failing to manage their supply and demand.
Garbage In
Garbage Out China's coal production hasn't kept pace with its thermal power generation Source: Bloomberg Note: Some of the discrepancy is explained by greater use of gas, higher coal plant efficiency, and imports. Still, something has to give. With coal prices spiking in recent weeks and the troubles of Evergrande highlighting Beijing’s unwillingness to endlessly backstop loss-making businesses, generators have been left no option but to switch off altogether rather than sell power at deep losses. That’s the immediate reason for the sorts of power cuts seen in China over the past month, spreading from factories to households as well. It looks like the government has blinked first. Miners, after months of being ordered to stick closely to capacity limits, are now being ordered to produce as much as they can, people familiar with the matter told Bloomberg News. That should help to take the wind out of surging thermal coal prices and prevent the current crisis from extending into the winter, when sufficient energy supply can be a life-or-death matter. There is, to be sure, an attempt to make this retreat look like a withdrawal. The latest advice from Beijing’s economic planners last week focuses on protecting individuals but continuing the crackdown on industry, especially when it’s most energy-intensive and polluting. Allowing generators to raise prices to end-users, as is happening in Guangdong province, will also help create a more commercial power market. Electricity consumption controls have even been loosened in a way that would permit potentially unlimited volumes of cheaper renewable power into the market. The risk, as with the rapidly fading fears over Evergrande, is that Beijing has simply deferred a pressing problem again. If China doesn’t reform a system that refuses to face up to its internal contradictions, the problems of an economy fed by credit and carbon will only fester and grow.
Source: Bloomberg
Carrington Textiles is the largest manufacturer of workwear fabric in the UK, producing 130 million metres annually across the international factories of the wider group, and exports to more than 80 countries. Based in Lancashire, the birthplace of British textiles, the business has 130 years of experience and one of Europe’s largest fully integrated textile processing and finishing operations. The company played a key role during the Coronavirus pandemic, supplying more than 10 million metres of specialised fabric to the healthcare sector in the UK and mainland Europe. It has also expanded its portfolio to supply flame retardant, waterproof, defence and sustainable fabrics to the market. The Manufacturer caught up with Research and Development Manager, Kirsty White, to hear how an innovation led environmental strategy is the ace up Carrington Textiles’ sleeve. ‘Eco-innovating’ is a key aspect of Carrington Textiles’ enviro-strategy. How does what you do in R&D support that? We specialise in the development of fabrics capable of performing in the most demanding workplace environments including the emergency services, oil and gas, construction and healthcare. Longevity of the product is absolutely key to supplying markets such as these. That doesn’t mean just deploying more efficient manufacturing techniques. It also means keeping up-to-date with exciting new technologies and fabric developments. It can be a challenge to balance longevity and sustainability because recycled polyester, for example, typically doesn’t offer the same strength capabilities as virgin polyester. That’s why the research and development team are so instrumental. Yet, changing one aspect of the process to make a product more sustainable can have a negative effect elsewhere in that product’s lifecycle. That’s why we take a wider holistic approach to sustainability across our operation and collaborate closely with fibre producers, spinners and weavers, our manufacturing sites and customers. To continue being at the forefront of innovation means looking at what’s currently available in the market as well as what’s at the cutting-edge. It also means leveraging developments in other sectors adjacent to workwear such as outdoor textiles. What does your typical day look like? I’m very fortunate that it varies from day to day. Being involved in most of R&D across our group requires a lot of coordination with our four production facilities: Pincroft Dyeing and Printing and Alltex Dyers and Finishers, both in the UK; Carrington Textiles International in Pakistan. MGC in Portugal, and Adventum Technologies in Russia. In terms of fabric and product development, I work closely with our technical and quality teams, alongside our weaving partners to ensure the success of trials across all sites. We conduct tests to validate the greige [the raw, unprocessed fabric] before it goes into production along with end process and final product testing. Carrington Textiles is a member of several key sector bodies, including The European Textile Services Association and The Microfibre Consortium, which aims to minimise fibre fragmentation and its release into the environment We’re also involved in lots of national and international R&D projects, such as POPFREE which aims to develop water and dirt repellent clothing without the use of harmful PFAS [fluorine]. We also work on projects with competitors. That might be unusual but if we are going to address big global challenges like climate change, then collaboration will be vital – even if we are in competition with each other. What investments has Carrington Textiles made to become more sustainable? Over the past decade, more than €45m has been spent on new machinery and processes, with further investments due to be made in new laboratories, machinery, warehousing and sustainable energy projects. Our dyeing processes use less than 50% of the water traditional processes use and we’ve cut our energy usage by more than 40% by introducing LED lighting. Our heat recovery system saves 4,000 tonnes of CO2 emissions a year and we look to harvest or re-use energy wherever possible. Any chemical we use is recycled where possible and those which can’t have a ‘run to dry’ system which minimises the amount of waste chemical at the end of the process. New lab equipment allows us to conduct lab trials and more of them, that frees up time on the production line, generates less waste and improves the chances of a development being successful. On the production side, we have two automatic cutting machines which help optimise yield and a digital colour measuring system on our dye range and sanforizer enabling us to check tolerances directly on the line. That means any necessary adjustments can be swiftly made to ensure the product meets the customer specification. That keeps our waste levels low and means no quality issues or delays for our customers. With our spinning and weaving being done overseas, having a strong collaborative relationship with our sites means that we can carry out trials and validations remotely prior to the product actually leaving the factory. That really provides a strategic advantage in terms of maximising the speed of developments while reducing our carbon footprint. Can you provide an example of Carrington Textiles being at the forefront of innovation? As far as I’m aware, there isn’t anyone within the workwear sector that utilises CiCLO technology, developed by Intrinsic Advanced Materials. CiCLO is a sustainable textiles ingredient in the form of an additive that is combined with polyester at the very beginning of the fibre making process. When CiCLO Polyester ends up in the environment either through washing or end of life of the garment, it behaves like natural fibres and breaks down. The additive doesn’t have an impact on the lifecycle of the product, it still offers the same longevity, but it greatly reduces micro-plastic pollution and textile accumulation. Part of our Balance Range of sustainable fabrics, Hawksbill and Orca – due to be launched in the coming months – will incorporate CiCLO technology. It’s not something the market has asked us to develop, it’s an opportunity that we think is really innovative, and will satisfy customers’ need for more sustainable fabrics. The expansion of our stretch range and the introduction of lighter, yet durable fabrics are also a key focus for Carrington Textiles’ research and development strategy.
Source: The Manufacturer
Japan’s Fast Retailing has signed the Microfibre 2030 Commitment, an initiative to minimise the impact of microfibres on the natural environment. The Microfibre 2030 Commitment was established by The Microfibre Consortium (TMC), a non-profit, international cross-industry group working to address the problem of fibre fragmentation from clothing textiles. The commitment aims to eliminate the environmental impact from microfibres, with 250 companies joining as signatories by 2030. These companies will conduct tests on their products and manufacturing processes, and contribute data to build an industry-wide database and assessment system. The objective is to have 80 per cent of member companies adopt research-based microfibre standards in their products and manufacturing processes, so that the release of microfibres into the environment is appropriately managed, Fast Retailing said in a press release. Fast Retailing will conduct prescribed fabric testing annually through 2023 and provide the data to TMC. This will be combined with data from member companies in a database, and used to develop tools and resources for the entire industry to achieve the commitment. Fast Retailing will utilise this data and knowledge to implement measures to limit microfibres from its products and manufacturing processes and, by expanding best practices to the industry as a whole, contribute to achieving the commitment. Fast Retailing considers the environmental impact of microfibres to be a priority issue. Going forward, the company will continue to work with the industry and enhance measures to minimise the release of microfibres into the environment throughout the product lifecycle. Fast Retailing first joined TMC as an associate member in September 2019. The Microfibre Consortium (TMC) is a cross-industry, membership non-profit organisation that facilitates the development of practical solutions for the textile industry to minimise fibre fragmentation and release of fibres to the environment from textile manufacturing and product life cycle. TMC supports the use of production processes backed by academic research, providing manufacturing plants, retailers, and suppliers with concrete solutions that protect ecosystems.
Source: Fibre2 Fashion
