Portugal between backwardness and lost opportunity

The European Union is forging a new reality for the textile industry, driven by the urgency to combat the sector's devastating environmental impact. As of January 1, 2025, separate collection of textile waste became mandatory in all Member States, a fundamental step toward the transition to a circular economy. However, the true driver of this change—Extended Producer Responsibility (EPR)—is being implemented at very different speeds, and Portugal, despite its track record and potential, appears to be falling behind, with potentially severe consequences for its economy and its vibrant textile sector.

RAP brings with it a transformative principle: it shifts the financial burden of waste management from municipalities and taxpayers to the producers themselves—fashion brands, importers, and retailers. The objective is clear: to encourage eco-design, durability, repairability, and recyclability of products from their conception, internalizing environmental costs. This mechanism, complemented by eco-modulation of fees (where more sustainable products pay less), promises a more consistent and higher-quality flow of raw materials to recyclers and the creation of new green jobs. An OECD analysis suggests that a comprehensive EU-wide RAP system could generate between €3.5 and €4.5 billion annually for collection and recycling efforts.

The labyrinth of Producer Responsibility Organizations (PRO)

The operationalization of the PAR depends heavily on the successful establishment of Producer Responsibility Organizations (PROs). These legal entities are the backbone of the system, responsible for organizing and financing the collection, sorting, reuse, and recycling on behalf of producers. Their complexity lies not only in their creation, but also in the need for harmonization and clarity of roles across the European single market.

Countries like France, with its Refashion scheme in effect since 2007, and the Netherlands, which implemented its textile RAP decree in 2023, are pioneers. Latvia followed suit in 2024. These countries are building the infrastructure and expertise needed to manage textile waste streams and drive circularity. However, even for them, full harmonization at the EU level is a challenge, with different requirements for rates, quantities, and reporting deadlines that can fragment the market.

Portugal: One step forward, two steps back?

The Portuguese context is paradoxical. On the one hand, Portugal has a robust and well-established RAP framework for packaging (Decree-Law No. 152-D/2017), with RPOs such as Sociedade Ponto Verde and Novo Verde operating effectively. This precedent should be an advantage, allowing for more agile transposition for textiles. However, despite the EU mandate for separate collection of textiles coming into effect on January 1, 2025, the truth is that, as we are already in mid-2025, Portugal still does not have a specific and fully implemented national law for textile RAP.

This gap is worrying. While the Portuguese textile industry, recognized for its proactive sustainability approach, actively advocates for "eco-modulation" and fair trade legislation, the lack of a clear legal framework for textile RAP creates uncertainty. Furthermore, the issue of "end-of-waste" (EoW) criteria for textiles—which determine when a recycled material ceases to be waste and becomes a secondary raw material—is still under development at the EU level by the Joint Research Centre (JRC). Portugal has EoW (or in Portuguese: End of Waste Status – FER) criteria for other materials, but not for textiles, which adds a layer of regulatory uncertainty for recyclers seeking to reintroduce their products to the market.

The consequences of delay: a high price to pay

Portugal's delay in implementing the textile RAP has significant consequences for both the national economy and the sector itself:

Financial penalties and infringement procedures: The European Commission does not hesitate to initiate infringement procedures against Member States that fail to comply with their obligations. Failure to transpose directives can lead to substantial daily fines, which have reached €67,000 per day in previous cases of delays in waste legislation. The annual cost of non-compliance with environmental legislation across the EU exceeds €180 billion, a figure that has tripled in six years. Portugal, with its 32% recycling rate in 2023, well below the EU target of 55% for 2025, already faces challenges in meeting overall waste targets. The delay in the textile RAP will exacerbate this situation, exposing the country to financial penalties and the erosion of its environmental credibility.

Competitive disadvantage for the national textile sector: Companies in countries like France and the Netherlands are already operating under RAP schemes, benefiting from stable funding flows and eco-design incentives. For Portuguese companies, the lack of a clear framework means uncertainty about future costs and obligations, making it difficult to plan investments in advanced sorting and recycling infrastructure. The lack of adequate funding for municipalities in selective collection, a challenge already identified, could compromise the quality and volume of raw materials available to recyclers, putting them at a disadvantage compared to their European peers.

The Recycler-Producer Dilemma Exacerbated: The new RAP reality introduces additional complexity for recyclers: when they transform textile waste into new fibers, felts, or finished products, they themselves become “producers” of these new materials. This means that, in the future, they may have to assume expanded responsibility for the end-of-cycle of these products, contributing to a new RAP system. The lack of a national textile RAP law and harmonized EoW criteria for textiles in Portugal exacerbates this uncertainty, making cost modeling and pricing of recycled materials difficult. Portuguese companies already investing in innovation and circularity need regulatory clarity so that their efforts are rewarded, not penalized.

Missed economic and innovation opportunities: The transition to a circular economy in the textile sector is not only an obligation, but also a vast economic opportunity. PAR can boost job creation and the development of new recycling technologies. Portugal, with its tradition and capacity for innovation in the textile sector, has the potential to become a leader in high-value recycling niches. However, delaying the implementation of PAR could mean losing these opportunities to more agile countries that will attract the investment and talent needed to scale their operations. The Banco Português de Fomento (BPF) has agreements to unlock €1 billion in investment in Portugal that could support circularity. It is crucial that this funding be directed to a sector with a clear regulatory framework.

The way forward

The urgency is undeniable. Portugal needs to accelerate the transposition of the Textile RAP Directive into national legislation, establishing a clear and comprehensive legal framework. This framework should define the responsibilities of RPOs, financing mechanisms (with eco-modulation that benefits recycled materials), and "end-of-waste" criteria for textiles, aligning with EU developments.

It is crucial that the Portuguese government actively engage with the industry, sectoral associations (such as ATP and CITEVE), and existing RPOs to co-create a system that is effective, fair, and promotes competitiveness. Proactive implementation of the textile RAP is not just a matter of legal compliance; it is a strategic imperative to protect the national economy, drive innovation in the textile sector, and ensure that Portugal positions itself as a key player in the European textile circular economy. The time to act decisively is now, before delay becomes an irretrievably lost opportunity.