New research released by the Textile Advisory Group shows that regulated product stewardship (RPS) for textiles could add NZD 602 million to the economy and deliver significant environmental, social, and sector benefits for New Zealand.
According to Textile Advisory Group spokesperson Bernadette Casey, regulated product stewardship is the foundation of a resilient, fair and thriving textile industry, especially important in times of economic uncertainty.
"Beyond the economic and environmental gains, this research shows that the numbers stack up for the evolution of the sector to one in which there is a level playing field for New Zealand businesses, affordable clothing remains accessible for everyone, and circular design practices create more jobs," said Casey.
RPS is a system that allows the end-of-life costs of a product to be paid at the point of market entry, usually via a small fee paid by the producer. The report by global consultancy Eunomia outlines two RPS pathways, a modest and a high‑ambition option.
Findings include:
- NZD 98 million net benefit under the modest RPS scenario and a NZD 602 million net benefit for the high ambition scenario.
- Employment could grow by up to 6 percent by 2038. With opportunities across repair, reuse, recycling, research, innovation, and consumer engagement.
- Currently, 78 percent of textiles end up in landfill (107,000 tonnes/year), with just 6 percent reused or recycled in New Zealand.
- Under a high ambition RPS scheme, landfill could fall to just 4 percent by 2038, with a 23 percent reduction in consumption, and 8 6percent of what is bought, reused or recycled.
- For regular (mid-price) fashion items, price would increase by 1.8 percent on a modest ambition scenario and 2.9 percent for high ambition RPS.
- For super fast-fashion, the retail price would increase 7 percent and 11 percent under the different scenarios (for a NZD 25 top, this would be a NZD 1.80 or NZD 2.90 increase, respectively). Properly funded reuse (e.g., hire/lease) and repair initiatives, meanwhile, would improve access to high-quality clothing.
- Carbon emissions could be reduced by up to 10.8 million tonnes by 2038, with carbon reduction benefits valued at NZD 900 million under the low ambition scenario and NZD 1.6 billion under the high ambition.
“Retail price increases for clothing under RPS would likely be small, and while purchasing lower quality clothing costs the consumer more in the longer run, price is important with cost-of-living pressures. Consumers would benefit from higher quality products that deliver better value for money over time.”
Fast fashion is costing New Zealand charities too, with increasing reports of high volumes of unsellable, low-quality clothing donations that have to be sent to landfill.
RPS for textiles would generate funding for research and circular design, infrastructure and systems for reuse and recycling, and consumer education campaigns. A high ambition scheme would go further with kerbside textile collection and digital product passports, resulting in significantly higher reuse and recycling.
A well‑designed RPS would introduce compliance and funding obligations for producers, with most costs falling on low‑quality imports. The research shows that the overall benefits outweigh the costs. Including the reduced pressure on local councils’ waste systems, increasing the value of recycled materials, and creating new revenue streams for New Zealand businesses.
Eco‑modulated incentives are a key part of RPS and encourage better product design. Rewarding producers for improving durability, repairability and recyclability in textiles aims to encourage investment in better products.
“This research shows it is possible to have a strong local textile industry where businesses compete on quality rather than volume; and responsible production supports investment in innovation, textile recycling and circular business models, resulting in increased value for all.”
Bernadette Casey, Textile Advisory Group
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