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Photo: Textile factory in Malaysia - Free Malaysia Today
Is the Fire of second-hand clothes at textile market in Ghana on 30 January the wake-up call the garment industry needs? While flames show the impact of uncontrolled textile waste, the European garment industry remains one of the biggest polluters. After food, housing and mobility has European consumption of textiles most impact on the environment and climate change. In addition, the garment industry is among the top three sectors with the most pressure on water and land use, and is in the top five for resource use and greenhouse gas emissions.
The harmful effects of clothing production often remain invisible in Europe, but are elsewhere in the world felt daily. Cotton cultivation depletes huge amounts of water and agricultural land in the global south. Manufacturing plants use toxic chemicals that polluting water and rivers and thus microplastics spread. And also our discarded clothes mainly end up at heaps of waste in the global south.
Under the previous European Commission, initiatives for a sustainable and fair transition in the textile industry were launched, such as the Green Deal, the Sustainable and Circular Textiles strategy and the Corporate Sustainability Due Diligence Directive (CSDDD). Maar a year after the introduction of CSDD, pressure is growing to weaken sustainability requirements. Questions arise. Will the EU trade off green promises for economic and geopolitical interests? What does this mean for millions of textile workers in the global south?
Sustainability requirements under fire: reopening CSDD
With the introduction of the CSDD last summer and the Sustainable and Circular Textiles strategy lSeems the European Commission to work for a fair and transparent chain. Companies must actively prevent and address human rights violations and environmental damage in their chains. As for the textile industry, these initiatives offer an opportunity to reduce the impact of fast fashion companies, such as Shein and Temu, tackle and stop contributing to worker exploitation and environmental damage. While this is an important step forward, the scope is limited: the law only applies to large companies with at least 1000 employees and an annual turnover of at least 450 million euros.
With the changing political dynamics in Europe, especially after the Draghi's report, European competitiveness has become the priority of the newly formed European Commission. Many large companylobby groups welcome this new wind in the commission, identifying the measures of the previous European Commission's Green Deal as the inhibiting factor in the competitiveness of European companies. The CSDDD has now been reopened as part of the omnibus package to improve the rlevel pressure counteract. Supporters of the CSDDD fear that it will reopening leads to relaxation of the law and more ambiguity and chaos.
Despite concerns about the impact, the CSDD applies only to a select group of highly profitable companies. From an analysis of SOMO with 918 companies involved it appears that instead of investing in sustainable production chains, they pay out huge sums to shareholders. The estimated cost of compliance with the CSDDD is just 0.13% of average dividend payments in 2023, a minimal impact compared to their financial resources.
First exploited and now forgotten?
For years, textile workers in countries such as Bangladesh, Haiti and Ethiopia worked under harsh conditions to keep the fast fashion industry going. Low wages, long working hours and unsafe and exploitative working conditions remain part of the textile sector. As the European Commission commits to a sustainable and circular textile industry, a new inequality looms: while Europe reforms its industry, the consequences for millions of workers remain out of sight.
These workers are doubly affected: first exploited by the fast fashion industry and now potentially the brunt of the green transition. Europe is already benefiting decades of cheap labour and raw materials from the global south, but the current strategy focuses mainly on internal European interests. The European Commission promises job gains through reuse and recycling in the European market. Thus, the transition between the Creating 20 and 35 additional jobs per 1,000 tonnes of collected textiles. What happens to workers in manufacturing countries if demand for new textiles declines? Do they risk losing their jobs without compensation or support?
But as many as 75 civil society organisations from the global south warn the EU: a fair transition requires global responsibility. They call on the CSDDD not to off weaken, but instead focus on implementation. If the EU backtracks now on important corporate responsibility legislation, it will let down workers and the environment worldwide.
A sustainable transition must take into account the whole chain. Will workers outside Europe be supported with retraining and social protection? On these questions, the EU strategy remains silent. Green ambitions must not come at the expense of the most vulnerable in the production chain. A truly just and sustainable transition takes into account everyone in the production chain, from resource extraction to production and consumption.
Where does the Dutch government stand on a fair transition in the textile industry?
While the EU sees its sustainability ambitions under pressure, the Ministry of Foreign Affairs to Dutch implementation law. This is the moment for the Netherlands to show that it takes sustainability and international solidarity seriously. But how energetic is this government's approach really?
In January 2025, the House of Representatives called on the government to an agreement to implement the CSDDD quickly and effectively. A clear message: the Netherlands must be at the forefront of a fair and sustainable transition. Although implementation was well on its way, the Omnibus Act ensures that the process will have to go back to the drawing board after all. The Verbond van Nederlandse Ondernemingen (VNO) and the Nederlands Christelijk Werkgeversverbond (NCW) are satisfied with the Omnibus package. The organisation earlier expressed concerns about the regulatory burden and the enforceability of the legislation. Lobby groups want to avoid harming the Dutch position and jeopardising the international competitiveness of Dutch companies.
This discourse now sounds familiar in Dutch politics. More and more often, economic growth and Dutch interests are prioritised, while social and ecological responsibility take a back seat. Instead of taking the lead in an equitable transition, the Netherlands risks moving with the European trend of softening and postponement.
Are we seizing the opportunity for a just and sustainable textile industry?
The EU and the Netherlands now have the opportunity to lead the way and take real responsibility. Instead of weakening the CSDDD further, ambition and decisiveness are needed. This means not only active implementation and enforcement of the CSDDD, but also concrete support for workers and communities most affected by this transition. It is important to keep drawing attention to the impact of this transition and to make sure no one is forgotten or left out. Real change towards an equitable and sustainable textile industry means that all affected groups - including workers in the global south - are included in the process.
