A study sheds light on this sector

Second-hand garments recylcing: a European “business”. But Africa pays the dues

Every year the Old Continent produces almost 6 million tons of discarded garments, some in good conditions, others reduced to rags. A research conducted in Nordic Countries provides the full picture from collection to selection, to the stage of sale. The overall purpose of “circular economy” is solidarity (when it involves NGOS and charities) and environmental compliance. However, some negative aspects include the impact on the textile industries of poor Countries

The European Union’s efforts for “circular economy”, the system whereby waste re-enters the economic cycle in the form of resources, are ongoing. At the end of January the Environment Committee of the European Parliament adopted a new legislative package that will be voted in plenary probably by February, which, inter alia, reinforces a set of Community directives. Among the new European targets in this area, figure: raising the amount of recycled waste to 70% by 2030 (from 44% today); reducing landfill to maximum 5%; reducing food waste by 50% from the current 180 kg per capita per year (coupled by specific regulations to facilitate donations of food). Similarly, differentiation in the collection of urban waste will be improved to include, inter alia, clothing items.

A growing sector. Separate collection and recycling of clothing items is a supply chain that has grown continuously since the early 2000s, marked by a huge turnover. A total of 5.8 million tons per year of textile waste are collected in Europe alone (of which, for example, 159thousand tons in France, about 80 thousand tons in Italy, more than 100 thousand in Britain, 100 thousand in the Nordic countries), amounting to a 2.8 billion-dollar market (estimates by “The Guardian”).

The garments deposited in the used clothing collection bins take a different route:

After being selected, a part of the items are resold at national level (although only the UK has a tradition of used clothing shops run by non-profit organizations and charities to finance related projects), a part is recycled within a new production chain (for example, insulating materials in the building sector), whatever is unusable or unsellable goes to landfill, but the most consistent portion ends up in the export market marked by increasing numbers of import-export enterprises, alongside with humanitarian organizations. In this whirlwind of tatters, the list of ambiguities and possible improvements is endless.

Export flows. The situation was depicted in detail in a recent survey (Exports of Nordic Used Textiles: Fate, benefits and impacts, 168 pages), an initiative of the Council of Ministers of Nordic Countries in the framework of the Green growth initiative that monitored export flows to establish whether this process supports circular economy or if it’s a mere export of waste to Countries lacking the tools to manage it; and also to verify whether this form of export has a negative impact on the textile industry of recipient Countries.

Supply chain, traceability. Each year, Denmark, Finland, Norway and Sweden export 75 thousand tons of discarded fabric to over 100 Countries. The endeavour is partly managed by charities that use the proceeds to finance their activities. But 75% of the garments are sold just as they were found in the used clothing bins to businesses in Eastern Europe (Poland, Lithuania, Bulgaria…) for selection purposes: a far too demanding endeavour to be economically feasible. From there, the garments are resold: “the best” remainin Europe (10%); second-quality garments also remain in Europe (Balkan countries, Russia, Turkey, and Africa, 46%), another part goes to the Middle East (11%). As for unusable garments destined for waste, a part remains in Europe (8%), a part goes to India and Pakistan for “mechanical recycling” (28%), and “only a small amount goes to Africa.” The first problem is linked to the fact that “in recent years, the markets registered a surplus of discarded fabrics collected in the US, Europe and elsewhere, resulting in a decline in demand and therefore in prices.” While on the one side a market was sought for each segment in order to cover selection expenses, on the other,

the economic exploitation of those working in this sector has increased.

Hence the first recommendation is that while in the case of fabrics meant for humanitarian relief programs the supply chain is easy to follow as it is handled by organizations that promote them, it will be necessary to improve the “traceability” of items that end up in the commercial distribution of clothing and to establish Codes of Conduct imposed by Nordic collectors on purchasers within the business chain, regularly monitoring their implementation.

Impact on Africa. The survey highlights the environmental contribution of Nordic Countries which otherwise would have had to incinerate the garments, since to date “there is no internal market for the re-use or recycling” of so many discarded clothes. The report equally shows the impact of this export flow on Sub-Saharan Africa (Kenya, Ghana, Rwanda, Uganda, Tanzania and Malawi), which “might have contributed to the decline of the domestic textile industry”, already marked by “obsolescence and inefficiency.”

Rules and guidelines. In addition to the Code of Conduct and the monitoring of its implementation the document recommends Nordic exporters and policy-makers to shorten the supply chain by giving priority to direct sellers and not to wholesalers. As for the selection process, it requests that priority be given to EU Countries, where waste management is regulated by specific legislation and controls, highlighting the need for reuse and recycling projects within the Nordic market. Moreover, guidelines will be needed in terms of national and international legislation in the area of transport of used clothing, with the launch of strategies to encourage second-hand markets at national level, assistance to Developing Countries to improve waste collection and disposal systems.