German textile manufacturers and retailers are forming an alliance to have a say in shaping the circular economy as the European Union makes them financially and legally responsible for the waste they produce.

The new group, which roughly translates to an Alliance for Textile Circularity, is formed specifically as a private sector response to new EU rules that place the burden of waste management on the responsible businesses as opposed to local governments and taxpayers.

It is composed of the Confederation of the German Textile and Fashion Industry (textile+mod) and the German Trade Association (HDE)—which are industry groups that represent fashion and retail, respectively. In a joint appeal, they said they seek to shape how the industry transforms into a circular economy while staying globally competitive.

New EU rules on packaging waste entered into force in February 2025, giving companies that do business in the bloc roughly 18 months to prepare for Aug. 12 of this year, when general application of the Packaging and Packaging Waste Regulation started. The new rules aim to minimize the use of wasteful packaging as the economy transitions to become more circular.

The alliance is not against having a circular economy or being more sustainable. However, it wants to be more involved in the design of Extended Producer Responsibility (EPR) so that the practice would also consider other factors such as economic viability and fair competition.

This opportunity should be used to create powerful structures—not to solidify existing inefficiencies or build additional bureaucracy and double structures, the joint appeal read. The alliance is currently inviting companies, institutions, and other relevant key players to join the initiative.

Uwe Mazura, managing director at textile+mod, said the EPR is an important foundation in building a functioning textile economy. However, the companies responsible for the waste should also be able to actively contribute their expertise to the design of the system, especially given how innovative the German textile and fashion industry is.

Among its main advocacies, the alliance wants to be permanently involved in the design, control, and further development of the EPR system. It also wants the responsibility to be allocated on equal terms, including third-party country providers and cross-business models.

HDE Managing Director Stefan Genth said EPR can only be successful if it applies equally to all market participants. He said it should be the case that German and European companies bear the costs and obligations of an EPR system, while international platforms or providers from third countries remain exempt from these obligations.

Anyone who brings products to the European market must take equal responsibility. Only in this way can we create fair conditions of competition and a viable foundation for the textile circular economy, he said.