Extended producer responsibility for textile sector
From July 1, 2023, new rules for waste management of textile products will apply in the Netherlands. Producers (and importers) must collect discarded textile products and ensure that they are processed in a high-end manner. The new rules are seen as an important step towards a circular economy. The new rules create what is known as "Extended Producer Responsibility" (EPR) for the textile sector. EPR means that producers and importers are financially and often organizationally responsible for the waste management of the products they place on the market. The EPR Scheme Decree contains the general obligations on waste management that are already in place today. The EPR Decree on Textiles, effective July 1, 2023, contains additional legislation specific to the textile sector. Other sectors – such as car tires, electronic equipment and batteries – have already been subject to EPR for some time.
To whom do the new rules apply?
The new rules apply to "the party who is the first to offer the textile product professionally in the Netherlands." This can be manufacturers, producers, importers or other suppliers (all called "producers" under the EPR). It does not matter to whom the textile product is offered first. This could be, for example, to a clothes store or directly to a consumer. Because the majority of textile products are produced abroad, many importers will be affected by the new rules. Think of wholesalers who sell foreign textiles to Dutch retailers.
The new rules apply to "newly manufactured" consumer clothes and workwear and to household textiles (tablecloths, bedlinen, towels and kitchen towels). The obligations do not apply to other textile products such as shoes, blankets, belts, curtains, etc. Unsold stock that has not been placed on the market is not covered by the obligations, whereas returned products that have been placed on the market are.
Do the rules apply to foreign producers?
Foreign producers who fall within the scope of the new rules (see above) are required to appoint an authorized representative based in the Netherlands to take care of their obligations. This should facilitate the monitoring of compliance with the obligations of non-resident parties who usually offer their products in the Netherlands through a webshop.
What obligations will apply?
The following obligations will apply:
- Single notification between July 1 and August 12, 2023.
As of July 1, 2023, a reporting obligation will apply. A manufacturer must report between July 1 and August 12, 2023 the type and quantity of textiles it expects to place on the market in the next 12 months. - Organize an appropriate collection system
Producers must secure organizing an "appropriate" (available year-round and free of charge) collection system for clothing and household textiles they place on the market. Currently, municipalities are responsible for the collection of textiles. Under the new rules, producers will become responsible for this, including financially. It is to be expected that a producer organization will organize the collection on behalf of the producers, using – at a financial charge – the existing collection structure of municipalities (e.g. textile banks). To achieve the targets (see below) for recycling and reuse, however, more and better textiles will have to be collected. Currently, half of the textile waste ends up in the residual waste and goes to the incinerator. The goal of the new legislation is to reduce this and to expand the number of collection points. It is expected that more and more places will become available for handing in old textiles such as clothes stores, supermarkets and post offices - Targets for reuse and recycling
Starting in 2025, there are minimum targets (expressed in weight percent) for reuse and recycling that increase annually. For example, by 2025 50% and by 2030 75% of all textile waste in the Netherlands must be prepared for reuse or must be recycled. There are also specific targets for reusing textiles (as second-hand clothing). This aims to encourage producers to market more good-quality textile products. These have a longer lifespan and are therefore more suitable for reuse. The new rules also stipulate that a percentage of textile waste that is reused must be reused in the Netherlands. This should reduce the dumping of textile waste to third countries - Targets for textile fiber recycling
Starting in 2025, there are annually increasing minimum targets for fiber-to-fiber recycling. This means that part of the recycled textile waste must be reused for clothing or household textiles (and cannot used for insulation material, for example). This means that producers will have to adjust their design and production methods to allow a wider application of recycled textile fibers in their own textile products. - Annual report
Producers are required to report annually to the Minister of Infrastructure and Water Management on the quantity of textile products they have placed on the Dutch market and on compliance with obligations under the EPR textile regulations.
Joints producer organizations
The starting point is that each producer must individually fulfill the obligations. Producers can (jointly) implement the obligations by joining a producer organization that is responsible for meeting the obligations on behalf of the producers. Producers pay a financial contribution and the organization then takes care of the notification, collection, reuse and recycling of textile waste. Currently, the Stichting UPV Textiel is the only producer organization that producers can join.
In a collective implementation of EPR obligations by a producer organization, it is important to pay attention to competition law frameworks. Sustainability agreements may not be anti-competitive and an economic dominant position may not be abused. In practice, the Dutch Consumer and Market Authority (ACM) acts as a facilitator for joint sustainability initiatives by companies. Regarding sustainability initiatives, companies can request the ACM for an informal view and a risk analysis based on documents to be provided by them. Although the informal view does not prevent the ACM from ordering an investigation or still taking a (different) decision at a later stage, the ACM can also choose not to use its enforcement powers (such as ordering investigations and imposing fines).
Consequences of non-compliance
If obligations from the EPR textile regulations are not met, both administrative and criminal law enforcement can be carried out under the Environmental Management Act. For example, in the case of violation, an order under administrative coercion, an order subject to a penalty or a fine can be imposed, or a company can be shut down.
Impact of other (European) legislative developments
The new obligations under the EPR Textiles are in line with the EU's sustainability policy under the European Green Deal, the Circular Economy Action Plan, the EU Strategy on Sustainable and Circular Textile, and for example new rules on sustainable product design (EcoDesign Regulation Proposal). New EU rules were already initiated earlier on waste management (e.g. with respect to batteries and waste shipments), deforestation and microplastic pollution in the environment. Collectively, the existing and forthcoming rules (both at national and EU level) will have an impact on the way companies organize and set up their product design, production processes, packaging, transport and waste management. It is recommended to follow these legislative developments and to timely investigate their possible impact on business operations and production.
Want to know more?
Please contact Renske Sinke and/or Tosca Bokhove.
