India & EU to create 3 working groups under Trade & Technology council to boost ties
UK industry body leads delegation to India to explore FTA opportunities
PLI Scheme Attracted Rs 45,000 Crore Investment, Created 3 Lakh Jobs: NITI Aayog CEO
India strengthening bilateral relations with Qatar
MP industrialists ask for govt intervention in textile cluster’s land encroachment issue
In Charts: How India can reduce dependence on China for imports by leveraging PLI schemes
INTERNATIONAL
The new set of global ESG rules to future-proof your business
Bangladesh hosts half the top 100 LEED certified green factories across globe
BGMEA, SOWTEX to hold "Textile Sourcing Meets’23" & Road Show in India from February 9-12
Cleaning up fast fashion: can it be done
NATIONAL
All eyes were on the Hon’ble finance minister as she presented her last full before the 2024 elections. While the Indirect Tax proposals in the Speech were primarily limited to customs duty rate changes, the details, as always, lie in the fine print. On the GST front, the perplexity around claiming Input Tax Credit (ITC) on account of expenditure incurred for Corporate Social Responsibility (CSR) has been clarified by disallowing ITC on such expenditure. https://timesofindia.indiatimes.com/business/budget/union-budget-2023-custom-duty-proposals-are-largely-aligned-to-governments-vision-of-make-in. TRENDING STORIES IN BUSINESS ENTIRE WEBSITE OTHER CALCULATORS Furthermore, to curb the inordinate delay and to ensure regular compliance by taxpayers, an outer time limit of three years has been introduced for filing GST returns. While the unregistered suppliers and composition dealers have been allowed to trade on e-commerce platforms, an obligation has been cast on the e-commerce operators to ensure there is no contravention of provisions by such suppliers, otherwise they could be penalized to the extent of the tax amount. The GST Council recommendations in relation to GST implications on supply of goods where supplier and recipient are located outside India and supply of warehoused goods before clearing for home consumption have been implemented retrospectively to avoid unnecessary litigations in line with the decision taken in 48th GST Council meeting. Similarly, the interpretation issues over the taxability of electronic services qualifying as Online Information Database Access and Retrieval (OIDAR) services appears to have been settled by omitting the conditions of ‘essentially automated’ and ‘involving minimal human intervention’. This has widened the scope of OIDAR services. Furthermore, such services would now attract GST in India even if the same are received by unregistered persons for the purposes of business, commerce, or profession. Such a widened scope could see an increase in registrations by foreign entities engaged in providing various electronic services in India. On the other hand, the Customs proposals are largely aligned to the government's vision of ‘Make in India’ by boosting domestic manufacturing, enhancing domestic value addition, and encouraging green energy and mobility. Accordingly, the reduction in the number of Basic Customs Duty (BCD) rates on goods, other than textiles and agriculture, is a welcome move as it further simplifies the overall Customs Duty rate structure in the country. The BCD rate exemptions should provide an impetus to electronic goods, automobiles, petrochemicals, and precious metal sectors. The legislature seems to have also rectified an BUDGET TOP TRENDING unintended miss whereby the two-year validity on exemptions shall not apply inter alia to schemes under the Foreign Trade Policy, Multilateral & Bilateral Trade Agreements, re-imports and temporary imports, and to goods imported as gifts or personal baggage. However, a lot more was expected from the Budget, and this was an opportune time to clarify the roadmap for the Development of Enterprise and Service Hubs (DESH) scheme and GST Tribunals, measures to streamline the GST administration through investigations, scrutiny etc, to introduce an automated standardized Customs Special Valuation Branch (SVB) procedure, as well as to extend a one-time amnesty both under Customs and GST Laws to reduce litigation.
Source: Times of India
India and the EU on Monday announced the establishment of the three Working Groups under the IndiaEU Trade and Technology Council and their Terms of Reference. TTC was launched by Prime Minister Narendra Modi and President of the European Commission Ursula von der Leyen during the latter’s visit to India in April The TTC is a strategic coordination mechanism that will allow both partners to tackle challenges at the nexus of trade, trusted technology and security, and thus deepen cooperation in these fields between India and the EU. The TTC with India is only the second such Council for the EU and the first such mechanism for India. The TTC will be co-chaired on the Indian side by the Ministers for External Affairs; Commerce & Industry; and Communications, Electronics & Information Technology. Under the TTC, the following three Working Groups have been established: i). Working Group on Strategic Technologies, Digital Governance and Digital Connectivity: Chaired by Secretary, Ministry of Electronics and Information Technology ii). Working Group on Green & Clean Energy Technologies: Chaired by Principal Scientific Adviser to the Government of India & Working Group on Trade, Investment & Resilient Value Chains: Chaired by Secretary, Department of Commerce.
Source: Economic times
The Confederation of British Industry (CBI) has sent its first-ever business delegation to India on Monday aimed at unlocking opportunities from the Free Trade Agreement (FTA) being negotiated between London and New Delhi. The industry body, which speaks on behalf of 190,000 UK businesses of all sizes and sectors, began a three-day visit covering Mumbai and New Delhi with some of the biggest names from British and Indian industries including HSBC, ICICI Bank, fintech firm Tide and wine and spirits major Pernod Ricard. The CBI said the delegation will focus on key growth sectors where UK and Indian business can develop profitable partnerships, such as innovation and sustainability. The UK-India relationship is going from strength to strength, so it is fantastic that the CBI is sending its first-ever business delegation to India, said Greg Hands, UK Minister for Trade Policy at the Department for International Trade (DIT). India is on track to become the third largest economy with a quarter of a billion middle-class consumers by 2050 so the free trade deal we're negotiating with them could unlock huge benefits for UK firms, he said. This visit comes against the backdrop of the UK preparing to host the seventh round of FTA talks with India. According to the CBI, the potential pact could boost trade with India by GBP 28 billion a year by 2035 and increase wages across the UK by GBP 3 billion. The trade delegation is aimed at bringing together UK businesses and key senior stakeholders from the British High Commission in New Delhi and the government of India to discuss growth opportunities in the Indian market. With the free trade deal between the UK and India soon to be signed and agreements such as the UK-India Young Professionals Mobility scheme already in place now is the time for businesses to explore how to grasp the huge opportunities that India affords, said Syma Cullasy-Aldridge, CBI Chief Campaigns Director, who is leading the India delegation. The CBI's first-ever delegation to India will put the promise of an FTA into practice helping businesses develop links with key stakeholders and supporting UK firms to go for growth around the world, she said. The CBI said the visit aims to share knowledge on how to scale up unicorns and address ways to increase trade in green goods and services between the two countries and contribute to net zero ambitions. On the delegation's agenda is the development of sustainable infrastructure, access to sustainable finance and navigating any trade barriers related to the sector in the country. Gurjodhpal Singh, the CEO, Tide India, said: Tide has had significant support from the Indian government's ease of doing business' drive, and from a wide array of government stakeholders in India and the UK. We're also now embedded in the country's fintech ecosystem and its financial services industry. We are excited to be part of the first CBI delegation from the UK to India, and applaud their efforts to support the government of India's commitment towards creating an even easier and business-friendly environment in the country. According to official UK government data, bilateral trade currently stands at around GBP 29.6 billion a year, which is expected to receive a major boost with the FTA deal that both sides hope will be concluded this year.
Source: Business-Standard
India's production-linked incentive (PLI) scheme, which aims to make domestic manufacturing globally competitive, has attracted investment worth over Rs 45,000 crore and has also created three lakh jobs, NITI Aayog CEO Parameswaran Iyer said on Monday. The government has rolled out the scheme with an outlay of about Rs 2 lakh crore for as many as 14 sectors, including automobiles and auto components, white goods, pharma, textiles, food products, high efficiency solar PV modules, advanced chemistry cell and speciality steel. "The PLI programme has already started showing results. About Rs 800 core have already been paid by way of incentives. "We are expecting (incentives) to go close to Rs 3,000 crore to Rs 4,000 core before March," Iyer told PTI. The scheme aims to make domestic manufacturing globally competitive and create global champions in manufacturing, and it is yielding solid results. "The scheme is working. Already about Rs 45,000 crore-plus investment has come in, three lakh jobs have been created and production worth Rs 2 lakh crore is already there," he added. The scheme, launched in 2020, offers a cash incentive for three to five years on the incremental sale of goods manufactured in India over determined base-year sales. Additionally, the identified beneficiaries are required to commit to a certain minimum investment in India. Replying to a question on the Centre's National Monetisation Pipeline (NMP) programme, he said asset monetisation plan is doing 'very well now' and it will be taken down to the states, "(In budget documents) All signals are that the asset monetisation programme, which is actually bringing in private capital, is continuing and now it will be taken down to the states," Iyer said.
Source: Outlook India
Today, Shri Sarbananda Sonowal, Union Minister, Ministry Ports, Shipping & Waterways had discussions on various policies and programs initiating progress in the transportation facilities between two borders with Minister of Transport of State of Qatar Mr Jassim Saif Ahmed Al-Sulaiti in New Delhi. During this meeting Shri Shantanu Thakur, Minister of State for Ports, Shipping & Waterways, Shri Sudhansh Pant, Secretary (PSW) and Shri Rajesh Kumar Sinha, Additional Secretary (PSW) along with senior officers of the Ministry accompanied the Union Minister MoPSW. India-Qatar cooperation in diverse sectors has been steadily growing in an excellent framework led by historical close ties, regular and substantive engagement. The large, diverse, accomplished and highly regarded Indian model of international relations is making an important contribution to Qatar's progress. ‘Fruitful discussions were held on commitment to strengthen the bilateral maritime cooperation, including interaction between Indian Ports and Qatari Ports to share best practices in areas of port operations, logistics, supply chain management, and digitalization’, said Shri Sarbananda Sonowal It is to be noted that, Qatar’s key exports to India include LNG, LPG, chemicals and petrochemicals, fertilisers, plastics, and aluminium articles, while India’s key exports to Qatar include cereals, copper articles, iron and steel articles, vegetables, fruits, spices, and processed food products, electrical and other machinery, plastic products, construction materials, textiles & garments, chemicals, precious stones and rubber. India's bilateral trade with Qatar in 2021-22 was US$ 15.03 billion. India’s export to Qatar during 2021-22 was US$ 1.83 billion and India’s import from Qatar was US$ 13.19 billion. In 2021, India was among the top four largest export destinations for Qatar and is also among the top three sources of Qatar’s imports. This year (2023) marks 50 years of establishment of full diplomatic relations between India and Qatar and Mr Jassim Saif Ahmed Al-Sulaiti is on an official visit to India from 5th to 8th February 2023.
Source: PIB
Ease of Doing Business for MSMEs: Industrialists in Madhya Pradesh have asked for MSME department and local administration’s intervention as the development work of textile cluster at Sukhpuri in Burhanpur has been delayed due to land encroachment, as per a report by the Times of India. At an estimated cost of Rs 56 crore on 63 hectares, the MSME department has proposed to develop a textile cluster at Sukhpuri village in Burhanpur. The cluster development is a part of the new policy under MSME Rule 2021. “Development work at proposed textile cluster can start once issues are addressed. We have raised concern regarding encroachment on proposed land to the local administration and MSME department. The district collector has assured full cooperation to clear the encroachment from the proposed site. The land also has very deep pits that need to be levelled,” Burhanpur Sukhpuri Textile Cluster Association director Prashant Shroff said. Importantly, the textile cluster is expected to attract an investment of more than Rs 800 crore and generate employment for more than 7,000 people. Besides that a 12-member Special Purpose Vehicle (SPV) has been incorporated for the textile cluster. According to the District Trade and Industries Centre, around 225 textile and related industries would be established in the cluster. Speaking about the progress of clusters, an official from the MSME department said, “We are in touch with industries and the work on four proposed clusters are at different stages. All these clusters will be developed in phases and we are working on issues to expedite the work,” the report noted. Madhya Pradesh government will contribute up to 60 per cent of the development project or Rs 20 crore for developing the cluster. The industries said that they had to select land from the available options but government’s intervention is needed to go ahead with the development work. The textile association’s director Shroff said, “Burhanpur is a hub for power looms and thousands of cottage, micro and small industries. The cluster will help in giving a level playing field to small units by cutting down on operational cost and use of advanced technology support.” Last month, at the Global Investors Summit 2023 Invest MP, Chief Minister Shivraj Singh Chouhan said that the investors establishing MSMEs in the industrial areas identified by the state government will not have to go through certain formalities, such as, they will not require factory licenses and business licenses among others. Further, for small investors, the MP government is planning to launch a “plug and play” facility in which they will get established infrastructure to start their units, said Shivraj Chouhan.
Source: Financial express
India can reduce its dependence on China for imports to the extent of 10% and add around $6 billion to its over time by leveraging production-linked-Incentive schemes (PLI), SBI Research has said in a note. The production-linked incentive scheme, which is a flagship offering of the Narendra Modi government, has been touted as one which would eventually help make India a robust manufacturing machine and a credible alternative to China. The PLI schemes envisage a cumulative $21 billion investment. In March 2020, India had announced the PLI schemes across 14 sectors including automobiles, auto components and electronics amongst others at an outlay of Rs 1.97 lakh crore, under the ‘Aatmanirbhar’ Bharat mission. The government is planning to extend the PLI schemes worth Rs 35,000 crore to different sectors such as containers, electrolysers, power transmission equipment, etc.) to ensure manufacturing CAPEX continues to remain elevated beyond FY26. These 14 sectors currently constitute around 40% of the total imports. The share of China in India's total imports have already declined from 15.5% in fiscal 2021 to 13.7% in FY23 (Apr-Nov). In FY23 Apr-Nov 22, there were 6,386 products with total value of $55 billion (or 13.7% of the total imports) imported by India from China. SBI Research estimated the import dependence of each product on China, by checking the share of Chinese imports in India’s overall imports of these categories Sectors with concentration of more than $ 100 million product imports with more than 50% import dependence It found that the maximum aggregate value ($10.8 billion) is of the products in which India's import dependence on China is between 70-80%, although the number of products is lower. Although number wise the imports were highest in the category where India's dependence was lowest (0-10%), the value is not that high at around $1.8 billion. When it looked at the data where the import value was between $100 million and $500 million, where the import dependence was more than 50%, the sectors in which the imports are concentrated are Chemicals especially Organic, Machinery and Mechanical appliances and Electrical Machinery, Textiles and Textile Articles, Motorcycle Accessories, Oxygen Therapy Apparatus etc In FY23 Apr-Nov’22 period, of $55 billion of imports from China, around $38 billion is commodities and goods where PLI scheme has been announced (textile, agri, electronics goods, pharmaceuticals & chemicals). Projecting imports for the full year FY23, total imports of these goods could be $57 billion. "If by leveraging PLI scheme we can reduce our dependence on China even to the extent of 10%, then we can add around $6 billion to our GDP and overtime if our dependence is further reduced by 30%, we can add $17 billion to GDP because of the incentives to domestically manufacture these goods owing to the PLI scheme," said SBI Research in a note. Even Kotak Mahindra Bank in its 2023 outlook report noted that India is likely to get a structural push to manufacturing coming from China plus one strategy (a strategy in which companies diversify their businesses to alternative destinations other than China) and PLI schemes. "The emergence of Europe plus one theme due to the looming energy crisis in Europe would bode well for India as it becomes an attractive investment destination given its lower cost advantage and macro stability of the country," the report said.
Source: Times of India
INTERNATIONAL
European consumption of textiles has the fourth highest impact on the environment and climate change, after food, housing and mobility. It is one of the top three pressures on water and land use, and the top five in terms of raw material use and greenhouse gas emissions. The average European throws away 11kg of textiles every year. Around the world, a truckload of textiles is landfilled or incinerated every single second. Global textile production almost doubled between 2000 and 2015, and the consumption of clothing and footwear is expected to increase by 63% by 2030 ( (ec.europa). Against this alarming backdrop, the European Union and national governments in the EU are pushing for laws and regulations that promote sustainability in the textile industry. The “EU Strategy for Sustainable and Circular Textiles” was adopted in March 2022. The plan proposes several measures that target the entire life cycle of textile products: New design requirements with mandatory minimums for recycled fibres in textiles Clearer information on textiles and a Digital Product Passport with mandatory information on circularity and other key environmental aspects Tighter controls on greenwashing Action to address the unintentional release of microplastics from textiles Harmonised EU rules on the Extended Producer Responsibility (EPR) for textiles A transition pathway for the Textile Ecosystem to define how to achieve the 2030 goals. It is not only in the EU that measurements are being taken. In the U.S., for example, we see the adoption of the Fashion Act, which focuses on requiring retailers and manufacturers to disclose their environmental and social policies. On top of this, they have to establish a fund for projects that verifiably contribute directly to communities and environmental justice (static1.squarespace.com). Also passed is the UK Modern Slavery Act, which holds companies accountable for the working conditions of their suppliers throughout their value chain. This requires annual reporting that slavery and human trafficking are excluded from the business and value chain (www.legislation.gov.uk). Why should you care? Companies in the textile industry must prepare themselves for the upcoming laws and regulations and regulations, to future-proof their business. The sooner action is taken to start the necessary preparations for compliance with these regulations, the higher chance textile and fashion companies are derisking their business. Here is a short explanation of the regulations that are either already in force or soon will be Extended Producer Responsibility (EPR) The EPR is an environmental policy that regulates the producer's responsibility for the full product life cycle from design until the end of life. This includes the mitigation of the environmental impact of products throughout their complete life cycle, including for example waste collection and recycling. The legislation of the EPR is already in effect in France and Germany and will follow soon in other EU countries. The Corporate Sustainability Reporting Directive (CSRD) The CSRD is the new EU legislation requiring all large companies to publish regular reports on their environmental and social impact activities. It helps investors, consumers, policymakers, and other stakeholders evaluate large companies' non-financial performance. Large companies, with more than 250 Employees and a turnover of 40 million euros or a 20 million euro balance, must be ready by 2025. Digital Product Passport The Digital Product Passport (DPP) will enhance product traceability, allowing consumers and manufacturers to access all the information concerning a specific product. It can provide information on the origin, composition, repair, and disassembly options of a product, as well as how the various components can be recycled. With these upcoming legislative changes, digital solutions are a driving force to a more sustainable economy. Data and technology can enhance muchneeded transparency in the fashion industry to the benefit of all. At tex.tracer we can help you become compliant with the upcoming laws and regulations and prepare you for the digital product passport, based on transparency within your value chain. It is our mission to create a better fashion industry and work with you to realise this. Get in touch to find out more!
Source: Fashion united
Bangladesh has recently become the country that accommodates half of the world's top 100 LEED certified green industrial units as the local entrepreneurs have been investing in environment-friendly manufacturing facilities. Of these top LEED certified factories in the country, 49 are in the apparel sector, while one is in the electrical appliances industry, according to the United States Green Building Council (USGBC). After the Rana Plaza disaster in 2013, mainly the country's apparel sector entrepreneurs focused on issues related to carbon, energy, and environmental quality to enhance the industry's image at global level and to get more attention from reputed brands and retailers. Currently, Bangladesh has 187 LEED certified green factories, all but four of which are in the garment sector. Among these LEED certified garment factories, 63 are platinum rated, 110 gold rated, and 10 are silver rated. KDS IDR Ltd, located in Kalurghat, Chattogram, was the latest Bangladeshi garment factory to receive the platinum rated LEED certification on 1 February 2023, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Sources at the BGMEA said 500 more garment factories are in the pipeline for getting LEED certification from the United States Green Building Council (USGBC) for their green initiatives. According to the USGBC, China has only 10 platinum rated factories, the second highest following Bangladesh, while Pakistan ranked third with nine platinum rated factories. India and Sri Lanka have six platinum rated factories each, Vietnam and Taiwan have four each, while Myanmar and USA have only two such factories each. Turkey, Indonesia, Ireland, Italy, Mexico, Poland, Paraguay, Romania and UAE have one LEED certified platinum rated factory each. "The LEED certifications indicate that the country's apparel sector operates business in compliance with the rules related to environmental safety, water and energy saving, and the workers' welfare," said Mohiuddin Rubel, a BGMEA director involved in the green initiatives. It is not mandatory for the factories to be green to get orders from the international clothing brands and retailers, but manufacturers still spend millions of dollars to become environment-friendly. In future, buyers might make it mandatory for the garment suppliers, he said. Initial investment for building a green factory is about 30% higher than that required for a normal factory, but in the long run such a factory's operational cost is lower compared to others, which is why the manufacturers are taking green initiatives, he continued. "None of the buyers are ready to pay any additional prices for the green initiatives, but they prefer placing orders in these factories, knowing that these suppliers make products in compliance with the rules related to environmental safety," said Rubel, expressing his frustration. He further said the government should encourage entrepreneurs in this regard by providing policy support for green initiatives, adding that, "A 2% tax cut is not an attractive benefit for green factories considering its investment cost." Echoing Rubel, Kutubuddin Ahmed, founder of the Envoy Textiles Ltd, the world's first platinum certified denim mills, said the buyers do not pay additional prices to the factories for taking green initiatives as they always want to get products at lower prices. Fazlee Shamim Ehsan, CEO of the Fatullah Apparels Ltd, one of the highest rated platinum rated knitwear factories in the world also said the buyers do not pay additional prices for the green initiatives, but they may change their mindset in the future. "We have invested millions of dollars to make the factories environment-friendly not solely for better prices but to protect nature while doing business," said Ehsan, who is also the vice-president of Bangladesh Knitwear Manufacturers and Exporters Association.
Source: Tbs news
The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has set a goal to take RMG export to $100 billion by 2030. To achieve this goal, the RMG sector of Bangladesh needs reliable and quality raw materials supply from building up our own backward linkage as well as readily available materials from China and India, said BGMEA on Monday. The demand for man-made fiber-based garments is growing and India is a reliable source of man-made fiber-based fabrics and lots of specialty fashion fabrics. As Indian textile supply chain is deep and highly fragmented, BGMEA has collaborated with SOWTEX – Tech Aggregator B2B Sourcing platform for fashion and textile materials to fast track connection to right suppliers from India. BGMEA has been working with the government agencies of Bangladesh and India to open up additional land ports and ease the congestion in Petrapole-Benapole border and better connectivity via train for smooth flow of raw materials from India to Bangladesh. The faster lead time and additional quality raw materials from a reliable source like India can help fulfill the demand for our buyers as well as grow the Bangladesh market in diversified product category areas. To this end, BGMEA and SOWTEX along with Confederation of Indian Textile Industries (CITI) have planned two "Textile Sourcing Meets’23 and Road Show in India from February 9 to 12. The event will be led by BGMEA President Faruque Hassan and Vice President Shahidullah Azim along with a team of delegates from Bangladesh RMG Industries. The BGMEA team is going for close interactions with top Indian Textile Manufacturers in a four-day visit on Textile Sourcing Roadshow planned in three cities Delhi - Ahmedabad - Surat. Team SOWTEX is co-hosting this Textile Roadshows starting from Delhi on February 9, 2023 and is inviting strategic stakeholders from CITI, Denim Manufacturing Association, SRTEPC and Ministry of Textile, GOI to have a close networking among the various stakeholders together. The first meeting will be held in Delhi on February 9 followed by a meeting in Ahmedabad and Surat on February 10 and 11. This meeting between Bangladesh and India will be a major step towards building strategic partnership to provide high quality fabrics and materials to this ambitious goal of $100 billion of RMG export from Bangladesh, and can contribute $15 billion of raw material support from India in the next 3-5 years, according to BGMEA.
Source: The.unb.com
Partner and patent attorney and associate at Withers & Rodgers, Dr Joanna Thurston and Naomi Higginson looks at how a fresh wave of tech-led disruptors are attempting to clean up the world of fast fashion. The global textile industry has been identified as the second largest industrial polluter after the aviation sector, and consumers have become more aware of the damage that it is causing to the environment and communities in underdeveloped areas of the world. Much of the problem stems from the popularity of fast fashion, which has led to consumers in Western countries buying more clothes more frequently, only to dispose of them after a couple of wears or at the end of the season. A study by Aalto University has revealed that the fashion industry accounts for 10% of global pollution and textile production generates a staggering 92 million tonnes of waste per year. Attitudes are changing however, and high-profile news reports have drawn attention to the social and environmental impact of textile waste, which is typically shipped in large quantities to countries in West Africa or South America to be “recycled” or “resold”. Arriving in container loads, much of this textile waste reaches its destination in a damaged condition, so it can’t be reused. As a result, this waste is incinerated or ends up in landfill. g the use of potentially polluting chemicals and energy-intensive production methods. For natural fibres, such as cotton, the environmental impact begins in the field, due to the use of mechanised irrigation systems to keep crops watered in countries where water supplies are already depleted. Synthetic fertilisers are also used to optimise yields by controlling pests and weeds, even though that one ton of nitrogen fertiliser emits greenhouse gas emissions equivalent to nearly seven tons of CO . For synthetic fibres, such as polyester, the environmental impact can be greater, largely due to the fibres often being sourced from fossil fuels, and as a result of the use of chemicals in polymer production. released into the atmosphere, polluting nearby water courses and impacting biodiversity, potentially causing respiratory disease. Reducing the environmental impact of global textile production is a multi-faceted problem, requiring major shifts in behaviour as well as a focus on technological innovation. Many large-scale textile producers are operating large plants with machinery that can’t easily be adapted to run in a cleaner and more sustainable way. Installing renewable energy systems requires significant upfront investment and creating circular energy loops in this type of environment is not easy to achieve. Instead, the pathway to a circular textile economy is being led by smaller tech-led innovators, some of which are spinouts from university research departments. Many of them are involved.
Source: Circular online
