• In a departure from provisions in the current law, units in the development hubs will be allowed to sell goods in the domestic market with customs duty to be paid only on the imported raw materials and not on the entire finished good Revamped special economic zones, to be called development hubs, will be able to avail auto-renewal of licences under the Development of Enterprise and Service Hubs (DESH) legislation, subject to conditions. Besides, developers of the zones will get infrastructure status, which will allow them to get easier credit at competitive rates, according to the Bill to be tabled in the ongoing monsoon session. The commerce department plans to implement the law by October. The new law aims to make the SEZ Act, enacted in 2006 to boost export and manufacturing, compliant with World Trade Organization norms and boost manufacturing and job creation. In what would make it attractive to set up units in the development hubs, the department of commerce has dropped the contentious “equalization levy" proposal, that was aimed to create a level playing field for sales by units in the revamped special economic zones and those outside these enclaves. The new Bill also proposes a framework to include existing industrial parks in the DESH framework, including those of other government departments like textile parks, food parks, pharma/power etc. Pratik Jain, partner, Price Waterhouse & Co LLP said, “There was some confusion on applicability of equalization levy on domestic clearances from the proposed hubs. If a decision is taken to do away with such a levy, it would further incentivize the businesses to consider moving to the hub." Industry is now waiting for the draft rules which are expected to provide clarity on several nuances including transition mechanism, conditions to be imposed for industry to move to the hub, guidelines for work from home, sub-contracting to domestic area, computation of duties or levies upon exit and so on, he added. Harpreet Singh, partner, KPMG, said the concessional corporation tax rate, coupled with on-site clearances, auto renewal of licenses etc. are going to be the key attractions under the DESH framework. “Policy makers may have taken a cue from SEZs, Export hubs which are WTO compliant and are working wonderfully in many countries like China, Indonesia, Malaysia etc.," said Singh. In a departure from provisions in the current law, units in the development hubs will be allowed to sell goods in the domestic market with customs duty to be paid only on the imported raw materials and not on the entire finished good. Under this, if raw materials are imported at zero duty from a free trade agreement partner country, no duty will have to be paid when the final product is sold in the domestic market. This acted as a big deterrent in the current SEZ regime, as duty on the final product was levied on sale in the domestic market instead of only on the inputs that were imported duty-free for manufacturing. M S Mani, partner, Deloitte India, said the new development hubs, and modifications in the existing SEZs in terms of the proposed DESH scheme would significantly enhance the competitiveness of Indian business- both in the domestic and export markets besides leading to increased investments and employment generation.
Source: Live Mint
The ministry of Textiles, government of India, will be interacting with handicraft artisans at a programme which is being organised by the development commissioner (Handicrafts), Handicrafts Service Centre, Kohima in association with DIC Chozuba on July 28, 11 am, at Vamuzo’s Memorial Hall. According to a DIPR report, highlights of the programme include—schemes for DC (Handicrafts) to the artisans, distribution of Pahchan ID card, benefit of e-commerce platform/GeM portal registration, MUDRA loan scheme, welfare scheme for artisans, benefit of artisan I card (Pahchan), spot enrolment of new Artisan’s for Pahchan ID, GI registration & procedures, Bima Yojana and helpline centre 1800 208 4800.
Source: Nagaland Post
As we move to a USD 5 trillion economy we are well poised on track to aspire to be a USD 30 trillion economy in the next 30 years,’ Commerce Minister Piyush Goyal said. Commerce Minister Piyush Goyal on Monday said that India is on the right path to become a USD 30 trillion economy in the next 30 years on the back strong GDP growth. While addressing an event organised Ficci Ladies Organisation, the Commerce Minister said, India is currently USD 3-3.5 trillion economy and soon will achieve USD 5 trillion, according to news agency PTI report. "As we move to a USD 5 trillion economy...we are well poised on track to aspire to be a USD 30 trillion economy in the next 30 years. It doesn't need any rocket science. All it needs is understanding that the power of our demographic dividend, the youth power and the power of democracy, which India proudly represents," Goyal said. Additionally, Piyush Goyal said that at a compounded annual growth rate of 8%, the goal of USD 30 trillion economy would be achieved sooner or later. The Commerce Minister said that women would play an important role in the growth of India and there is always space for them on the high table, while acknowledging Droupadi Murmu taking over as President of India on Monday, he said, “she has struggled a lot and her elevation as the head of the country is a matter of pride not only for tribals of the country but for everyone." Meanwhile, the Commerce Minister on Sunday called for the contribution of the private sector in promoting research in productivity, farmers' education as well as branding of Indian cotton, additionally emphasising on the need to adopt global best standards in cotton productivity. While speaking at an interactive meeting with stakeholders of the cotton textile value chain held at Vanijya Bhawan, New Delhi on Sunday, the Commerce Minister who also holds the portfolio of the Ministry of Textiles, said, "it is time for India to adopt world standards in cotton productivity. All stakeholders must share best practices to boost cotton productivity in India to boost farmer incomes. The private sector must contribute to boost research in productivity, farmers education as well as branding to which Government would provide matching support."
Source: Live Mint
Experiences post 1991 suggest that the Indian economy has gained a lot from the liberalisation of the current account. The global supply chain is in tatters, and India could become a major player by reorienting its strategy In July, the Reserve Bank of India (RBI) announced policies to encourage capital inflows and also took a step towards the internationalisation of the Indian Rupee (INR). Both the announcements were seen as India’s steps towards adopting a liberal policy stance towards the capital account. However, an economist friend drew attention to an interesting puzzle—why are we restricting the trade account while opening the capital account? International trade comprises two accounts—the current account and the capital account. The current account includes trade flows (exports and imports) and remittances. The capital account includes financial flows such as foreign direct investment (FDI), foreign portfolio investment (FPI), non-resident Indian (NRI) deposits, and external commercial borrowings (ECB). While most economists are united on benefits of current account liberalisation, they are divided on the capital account. Economists in the support camp say capital inflows are foreign savings that can help economies with lower savings. The foreign savings, along with domestic savings, can help increase investments, which, in turn, leads to higher growth & productivity. The opposition camp says capital flows are a fair-weather friend, coming like a flood in good times and becoming barren like a desert in bad times. The reversal causes sharp currency depreciation and the financial crisis seen in Latin American and Southeast Asian (SE-Asian) economies. Jagdish Bhagwati, in a highly-cited essay titled The Capital Myth blamed the IMF and Wall Street for pushing policies to liberalise the capital account. A third camp says capital flows bring both returns and risks. Hence, rather than taking an extreme approach of full liberalisation or a complete ban, one needs to take a middle path of sequencing capital flows. The capital flows in equity markets are less risky when compared to flows in debt markets. Therefore, policymakers should first liberalise equity flows (FII in equity and FDI) and gradually open up debt markets (FII in debt and ECB). India started to open its economy post the 1991 crisis and opened both current and capital accounts. The SE-Asian crisis led Indian policymakers to be in the third camp. In the high-growth years of 2004-08, multiple committees proposed faster and fuller liberalisation of capital account, but policymakers remained steadfast. The cautious approach was criticised back then, but earned high praise during the 2008 global financial crisis. The 2008 crisis was a result of history repeating itself, with the crisis changing shores from the developing to the developed world. The US and European countries received a flood of capital in growth years and then hit the desert. The 2008 crisis experience only cemented the approach adopted by Indian policymakers. All this while, the current account did not feature in policy discussions as it was believed that it would remain open. However, we have seen a reversal in this sentiment since 2019. The government has increasingly adopted policies to restrict transactions in the current account to protect local industries. The government banned imports and increased import duties. It has also pulled out of the Regional Comprehensive Economic Partnership (RCEP) signed by 11 countries to create the world’s largest free-trade area (FTA). During the pandemic, global supply chains were disrupted, leading most countries including India, to restrict trade. The buzzword was to be atmanirbhar or self-reliant. As the pandemic eased, the Russia-Ukraine war disrupted the oil and food commodity markets, leading to high inflation. The high inflation led the Indian government to ban exports of wheat, a move that was criticised by many economists. Amidst all these restrictions on the trade account, the capital account is being liberalised, which is at odds with the strategy followed so far. It is even odder in times of crisis, such as the present day. The world economy is facing high inflation, leading central banks to increase policy rates. The higher policy rates and the search for a safe haven have once again led to capital flowing to the US. This has led to the deprecation of currencies. The rupee has depreciated by 5% since January 2022. In order to encourage capital flows and stem depreciation, RBI has taken steps to liberalise the capital account. Apart from the safer option of NRI deposits, RBI has also incentivised FII in debt markets and borrowings under ECB route. What explains this change in policy stance towards the two accounts? One might reject this claim saying the recent measures are for the short term, to alleviate pressure on the rupee. One can also say policymakers are confident about the capital account liberalisation, which is a good thing. The experiences since 1991 suggest that the Indian economy has mainly gained a lot owing to the liberalisation of the current account. The global supply chain is in tatters, and India could become a major player by reorienting its strategy. On the 25th anniversary of the SE Asian crisis, we should reflect and take home the right lessons.
Source: Financial Express
The industries and commerce department has identified three sites in Mohali, Rupnagar and Pathankot districts for the proposed textile park that has requirement of minimum 1,000 acres of land. Days after it decided to scrap the textile park near Mattewara forest in Ludhiana, the Punjab government has started the process to identify an alternate site for the mega project planned under a central scheme. The industries and commerce department has identified three sites in Mohali, Rupnagar and Pathankot districts for the proposed textile park that has requirement of minimum 1,000 acres of land, a senior officer privy to discussions said. The process to select the alternate site, which was started after chief minister Bhagwant Mann on July 11 announced to cancel the original plan to set it up in Koom Kalan tehsil, is still at an initial stage and the availability of panchayat land is being ascertained. The state government had pitched the site to the central government for one of the seven textile parks planned across the country under the Prime Minister Mega Integrated Textile Region and Apparel (PM-MITRA) scheme having an initial outlay of ₹4,445 crore. Availability of contiguous and encumbrance-free land parcel of over 1,000 acres along with other textiles-related facilities was a primary requirement for consideration of any site for setting up the project. The selection of sites is to be made by the Centre on the basis of five metrics - connectivity to site, existing ecosystem, the availability of utility services, state industrial/textile policy, and environmental and social impact. A team of the Union textiles ministry led by special secretary VK Singh visited the 957-acre site in Ludhiana two months ago and met the state officials for assessment, pointing out contiguityrelated issues. The industries department also later made a case for acquisition of additional 250 acres as some portions of land proposed for the project were under litigation. Before additional land could be acquired, environmentalists and farmer bodies escalated their protest against the project, claiming that it posed threat to forest area, and the state government scrapped the plan. An aide of the chief minister said the government is looking for an alternate site and the Centre will be informed as soon as it is finalised. The sudden scrapping of site is being seen as a setback for the mega project as the central ministry is already assessing proposals from about a dozen other states. Another official, who had handled the project proposal, said that selection of an alternate site, particularly transfer of panchayat land for the project, would be a challenging task. “When a policy was brought during the previous government for using panchayat land to set up industrial projects, there was massive opposition, including from the AAP. The only readily available and suitable option as per the metrics decided by the central ministry seems to be the 1,500-odd acres of land of the closed Bathinda thermal plant where the government recently decided to develop a township,” he said, requesting anonymity. The pervious Congress government had proposed the site to the Centre for setting up a pharmaceutical park, but the project got delayed and the new government decided not to pursue it. The industry department officials, however, feel that being a major textile hub, the state has a strong case and would be able to bag the textile park project. Punjab is among the top 10 states for textile and garment exports, supplying primarily to the US, UAE, UK and Australia. As per the scheme notified by the central government, the textile parks will be set up at greenfield (fresh) or brownfield (existing) site locations in different states to create an integrated value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at a single location. For a greenfield park, the central government’s capital development support will be 30% of project cost with a cap of ₹500 crore. The textile parks are proposed to be developed in a public-private partnership (PPP) mode.
Source: Hindustan Times
The Dakshin Gujarat Chamber of Commerce & Industry in partnership with Dakshin Gujarat Chamber of Trade and Industries Development Center has organized the second edition of VIVENET Exhibition in Surat. The primary objective of setting up this exhibition is to provide large number of exhibitors from Surat and across the state a common platform to exhibit their products and interact with buyers from all over the country. The exhibition which will conclude today is underway at the Surat International Exhibition and Convention Center, Sarsana. Modern collection of various fabrics like plain, twill, satin, apparel, home furnishing, single jersey, double jersey, net and rapier jacquard items like top dye sarees, diable viscose sarees, diable went are on display. The event has been successful in attracting foreign attention. Representatives from UAE Textile Traders Association Textile Merchants Group (TEXMAS) and International buyers from Sri Lanka have visited the expo and interacted with the local sellers. Deep Prakash Aggarwal, President, Vivenet Exhibition said that genuine buyers from major textile markets of India such as Indore, Cuttack, Jaipur, Pune are participating in the exhibition. As per reports, the Exhibitors has so far been successful in receiving orders for Nylon Sarees, Curtain Fabrics, Sofa Fabrics, Lungi Fabrics, Brocade Fabrics and Technical Textiles. The expected number of buyers on the first day touched 5475 whereas on the second day the number doubled to 10234 visitors.
Source: KNN India
"A strong digital ecosystem, fiscal and monetary policy and various government schemes helped small and medium enterprises and the worst affected sections of the population to survive while reviving demand and bringing the economy back on track," said Birla while addressing UltraTech's shareholders. India is poised to be the fastest-growing major economy in the world and an engine of global growth despite global headwinds, says leading industrialist and Aditya Birla Group Chairman Kumar Mangalam Birla. The economic activity in India has witnessed a sharp recovery to pre-pandemic levels on the back of a rapid and widespread rollout of the vaccination programme, Birla said in the latest annual report of UltraTech Cement Ltd. "A strong digital ecosystem, fiscal and monetary policy and various government schemes helped small and medium enterprises and the worst affected sections of the population to survive while reviving demand and bringing the economy back on track," said Birla while addressing UltraTech's shareholders. On the global economy, he said it had recovered from the pandemic shock in 2022 on the back of supportive fiscal and monetary policies and mass vaccination programme. However, at the end of FY22, the war in Ukraine and the subsequent economic sanctions on Russia posed a huge shock. "It disrupted energy markets and supply chains and added to the already evolving inflationary pressures and concerns over consumer demand," said Birla. The Indian economy has not remained unscathed by these global developments, he added. Partly on account of the elevated commodity prices in global markets, India's inflation pushed higher than the target of the Reserve Bank ofIndia (RBI). To control inflationary risks, and reduce the pressure on the rupee, RBI has been selling reserves and unwinding the extraordinary liquidity support provided by it during the pandemic. On the positive side, economic activity in India has witnessed a sharp recovery to prepandemic levels on the back of a rapid and widespread rollout of the vaccination programme," he said. Even as the global headwinds are being felt, India's growth recovery is progressing well, and most estimates peg economic growth at around 7 per cent in FY23, Birla said. "India, therefore, is poised to be the fastest-growing major economy in the world and an engine of global growth," he added. India's exports are exhibiting a strong buoyancy, and economic sentiment has been supported by a robust pipeline of infrastructure projects as well as the government's pragmatic policies, such as the production-linked incentives schemes, he said. "Many industries have witnessed fresh project investment announcements. Foreign direct investment flows have remained strong. The burden of non-performing assets in the banking sector seems to have peaked out and is easing," Birla added. Besides, dynamism in India's digital ecosystem, diversification of global supply chains away from China and the greater emphasis of investors on sustainable finance offer new opportunities for India. These "trends lend confidence to a robust economic narrative" for India in the medium term, which augurs well for the corporate sector as well, Birla added. On the world economy, Birla said growth forecasts have been slashed. "The International Monetary Fund (IMF) now expects the world economy to grow by 3.6 per cent in CY22, which is 0.8 percentage points lower than its pre-war projections," he added. Many economies have experienced a sharp surge in inflation recently, particularly in food and fuel prices, taking their inflation rates to multi-decade highs. Central banks have been forced to respond to surging prices with aggressive rate hikes. "As the stance of monetary policy shifts, there is greater turbulence in currency markets. The dollar has strengthened, while emerging economies have witnessed downward pressure on their currencies," he said. Global supply chain disruptions due to pandemic-induced lockdowns have been replaced by new disruptions caused by the war in Ukraine and the economic sanctions. While talking about UltraTech, Birla said in FY22, it recorded net revenues of Rs 52,599 crore (USD 7.1 billion). He further said the Indian cement industry will add 80-100 million tonne capacity by FY25, driven by increased spending on housing and infrastructure. On expansion plans of UltraTech, Birla said it is investing Rs 12,886 crore towards increasing capacity by 22.6 MTPA (million tonne per annum). "Upon completion of the latest round of expansion, your company's capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China," he said.
Source: Economic Times
Textile firms are bracing for a profit plunge in the second half of this year, with the number of new orders slowing down since the middle of the second quarter. Most garment and textile enterprises have received orders for production until the third quarter or October, according to the Ministry of Industry and Trade. However, the industry’s growth momentum showed signs of slowing down from the middle of the second quarter when major export markets such as the U.S. and EU fell into an inflationary spiral. As a result, new orders have decreased and customers have shortened the order period from 6 months to 3 months. A company specializing in the production of children’s fashion clothes in Dong Nai used to get new orders of 80,000 – 100,000 garments every month from US partners. The company’s manager, Thai Minh, said that over the past two months, the number of new orders has fallen by 20-30 percent. Minh said the situation will not improve in the short term if the inflation issue in the U.S. remains serious, forcing people to tighten spending on non-essential goods. “We are promoting our products to Canada and Mexico that have many similar consumption characteristics. We hope to get a few new contracts for the year-end season,” she said. The decrease in textile and garment orders was mainly due to the slow consumption in large markets, especially the U.S. and EU, the increase in inventories of importers and high inflation pressures in the second half of 2022 and early 2023. “At the beginning of the year, after the pandemic situation was under control, countries reopened and our partners urged us to deliver goods quickly, but now they are very indifferent,” Minh said. The Vietnam Textile and Garment Group (Vinatex) and Rong Viet Securities Company (VDSC) have forecast that the demand for textiles and garments in the second half of the year will decrease due to “overbuying” and inflation that prompts belt-tightening for non-essential products like fashion. In addition, the double impact of post-pandemic supply chain disruptions and the Russia-Ukraine conflict have pushed the price of raw materials for the garment industry, especially fabric and cotton, up by about 7-10 percent compared to the same period in 2021. Post-pandemic labor shortage, increasing transportation charges and labor costs triggered by fuel price hike have negatively affected the entire textile and garment supply chain from manufacturers to retailers, industry insiders said. “Increasing fuel, freight and logistics prices will greatly affect business performance in the last six months of 2022 and possibly until 2023,” said Duc Viet, CEO of leading garment firm May 10. Textiles are also indirectly affected when the euro depreciates against the USD. The EUR dropped to the lowest in 20 years last week at roughly the same as USD, with the greenback surging this year amid global economic uncertainties. Vinatex general director Cao Huu Hieu said that a weakening euro will reduce the profit margin of buyers in EU countries. VDSC forecasts that the profits of Vietnamese textile and garment companies will be hit hard in the second half of the year as new orders decrease. Some leading garment firms have adjusted this year’s business performance targets. The Song Hong Garment Jsc estimates its pre-tax profits at VND500 billion ($20.83 million) down 8 percent from a year ago. Nguyen Van Thoi, Chairman of TNG Investment and Trading Joint Stock Company, said that the impacts will be uneven among enterprises in the same industry. He said the industry can recover if inflation is brought under control and consumer purchasing power increases. According to data from the Ministry of Industry and Trade, textile and garment exports hit $22.3 billion in the first six months of the year, an increase of over 20 percent year on-year.
Source: Retail News Asia
The import of apparel by the United Kingdom was badly hit by Brexit and the COVID-19 pandemic. The value of UK’s apparel import has been declining from 2019, when it became imminent that Brexit is going to take place. The subsequent onset of COVID-19 only increased this declining trend. However, home textiles imports performed better in 2020. UK’s apparel imports peaked in 2018 at $26.502 billion, compared to $24.308 billion in 2017. But the declining trend started since 2019 when the import value was $25.809 billion. It further decreased to $22.943 billion in 2020 and 20.886 billion in 2021. Imports in the first four months of this year stood at $7.634 billion, according to Fibre2Fashion’s market insight tool TexPro. However, home textiles imports decreased only last year to $4.212 billion in 2021 from its peak of $7.974 billion in 2020. The value of imports was almost at the same level in the preceding three years – $5.364 billion in 2017, $5.548 billion in 2018 and $5.593 billion in 2019. The figure stood at $1.274 billion in January-April 2022, as per TexPro.
Source: Fibre 2 Fashion
Pakistan and China are closing in to deal in Renminbi (RMB) and Pakistani Rupees (PKR) as Pakistan faces financial challenges. Federal Minister for Board of Investment (BOI) Chaudhry Salik Hussain told Gwadar Pro that the talks between Pakistan and China were ongoing to finalize the matter. “We can soon be dealing in RMB along with the US dollars. Both options can be utilised (side by side),” he added. Earlier, Prime Minister Shehbaz Sharif directed the State Bank of Pakistan (SBP) to hold meetings with the Industrial and Commercial Bank of China (ICBC) and Bank of China for use of RMB/PKR for bilateral trade between China and Pakistan. Prime Minister Shehbaz gave the instructions to SBP during a meeting with the Chinese businessmen held on May 30 this year. RMB is the official currency of China and one of the world’s reserve currencies. It is also the eighth most traded currency in the world. For the promotion of trade in the Chinese currency, a pilot project encompassing the introduction of ‘RMB pricing’ will be introduced in the first phase. In the second phase, RMB settlement and financing policies will be focused on. The exchange rate for the currencies of both countries will be set in the China Foreign Exchange Trading System (CFETS) and in authorized banks declared as cross-border currency markets in China and Pakistan, according to the official details. China and Pakistan share strong economic ties. Pakistan has largely imported machinery, transport equipment, iron, steel, yarn, and textiles from China. Meanwhile, China imported textile yarn, resource-based products, and fabrics from Pakistan. Chaudhry Salik Hussain said that Pakistan and China will soon find a way out on the use of RMB/PKR. He maintained that this would boost trade ties between the two friendly nations. CPEC has given a strong boost to Pakistan’s economic growth and livelihood improvement and has delivered positive economic effects. Pakistan’s rice exports to China crossed $225.25 million in the first quarter of the year 2022. According to the General Administration of the Customs of the People’s Republic of China (GACC), the sales of broken rice increased up to 40.27% as compared to last year.
Source: Daily Times
The COSATU-affiliated Southern African Clothing and Textile Workers’ Union (SACTWU) has now settled its 2022 wage negotiations in the blankets textile sector. It was settled after three rounds of negotiations. The new wage increase for SACTWU's blanket textile sector members will come into effect on August 1, 2022, which is the normal implementation date. The signature processes for the written wage agreement for the new blanket textile sector wage settlement were completed on July 22, 2022, according to a SACTWU press release. The new agreement for the blanket textile sector is a two-year agreement, effective till July 31, 2024. As per the agreement, for the metro areas, wages will increase by 7 per cent for each of the two years of the agreement, while in the non-metro areas, there will be an increase of 9.05 per cent for the first year and 9.11 per cent for the second year. The agreement was successfully concluded under the dispute processes and procedures of the National Textile Bargaining Council (NTBC), with employers represented by the South African Blankets Manufacturers' Employers Organisation (SABMEO), the release said. The parties to the agreement also agreed that a minimum period of three months’ work for workers employed on a contract will be implemented, but not linked to short time or retrenchments. COVID-19 vaccination will remain voluntary in the sector unless the Department of Employment & Labour introduces non-variable legislation (beyond the employers’ control) which makes vaccination compulsory.
Source: Fibre 2 Fashion
The excessive consumption connected to throwaway culture and disposable fashion is no longer in vogue, as consumers increasingly look for brands and companies that care about more than just profits. With awareness surrounding overproduction and textile waste negatively impacting the environment, more brands and companies are taking a closer look at their business models and implementing sustainability strategies. From investing in fibre alternatives to upcycling and cutting down on plastic usage, there are countless different ways textile manufacturers and brands are actively working to be more sustainable. But another concept has been gaining traction that tackles the industry's issues with overproduction and is sustainable at its core - circularity. Based on three principles driven by design, circularity focuses on reusing materials taken from the planet to produce textiles and garments to make new products, thereby eliminating waste and pollution. Regenerative by nature, circularity is supported by a shift to renewable energy and materials. A circular model which moves away from the linear process of production that most textile and garment companies follow, circularity is a system of frameworks that tackles current environmental issues like climate change, pollution, waste and loss of biodiversity. While some may think of sustainability and circularity as two very different concepts, the two are not as different as one may think. New legislation and proposals driving circularity are being introduced in Europe to help bring around sustainable change in the textile and garment industry. In 2020 the UN Economic Commission for Europe (UNECE) launched the traceability initiative to accelerate the industry’s shift to more sustainable and circular business models. A year later, the UNECE introduced 'the Sustainability Pledge’, a toolkit for measuring the environmental impact of businesses and in March of this year, the European Commission launched the EU Strategy for sustainable and circular textiles. Devised to help create a greener textile industry, the strategy implements the commitments of the European Green Deal, which sees Europe striving to become the first climate-neutral continent by transitioning to a circular economy. These strategies show that circularity and carbon neutrality are the ideal two-pronged approach to achieving the textile and garment industry's broader sustainability goals. Using more sustainable materials, reducing waste, or cutting down carbon emissions is not long enough to make a real difference. Leading fibre manufacturer Lenzing quickly realised this and has interwoven circularity and carbon neutrality into its sustainability strategy. Aiming to make a positive, substantial contribution to protecting the environment with its customers and partners, Lenzing has set different goals against global warming that align with the UN Sustainable Development Goals. Through its flagship brand of TENCEL™ fibres, which the company now offers in certified carbon neutral form, Lenzing aims to reach net-zero emissions by 2050 by reducing its emissions and using more renewable energy sources, encouraging the industry to source materials with a lower footprint and offsetting unavoidable carbon emissions. By 2030, Lenzing emissions per ton of manufactured pulp and fibres will be reduced by 50 percent compared to 2017. Developed 30 years ago, TENCEL™ branded fibres are made of cellulose, the core component of plants and trees. Sourced from sustainable forests, the wood pulp is processed in closed-loop systems that use as little energy and water as possible. Taking things one step further, Lenzing developed its pioneering REFIBRA™ technology, which produces TENCEL™ Lyocell fibres by mixing upcycled cotton scraps from garment production with wood pulp, also manufactured under closed-loop processes. This contributes to the circular economy in the textile industry by giving the garment wastes from pre- and post-consumer sources a second life. Resource use and energy are reduced to a minimum, preserving resources and protecting the environment. Lenzing has focused on a “value chain” way of thinking since the launch of its TENCEL™ branded fibres, seeking to implement the same sustainability standards at every stage of production. Actively working with experts and partners to develop innovative solutions, Lenzing works with leading organisations to develop new technologies that further reduce waste. For example, the fibre manufacturer is collaborating with Södra, a worldclass pulp producer, to develop a new process that extracts pulp from post-consumer waste. The goal is to process 25,000 tons of textile waste per year by 2025. Committed to sustainable fibre innovation, net-zero emissions and circularity, Lenzing's sustainability strategy shows that the two go hand in hand. By positively impacting the industry with additional benefits for people and the planet, Lenzing's unique approach contributes to a sustainable future but also its and the industry's future economic success.
Source: Fashion United
