T-REX project report: business models & financial viability

As part of the T-REX Blueprint for scaling textile-to-textile recycling in Europe, this report presents key insights from the Techno-Economic Assessment (TEA) on the business viability of circular textile systems.

While the market potential is clear — with fibre-to-fibre recyclable textile waste in Europe projected to reach 1.2 million tonnes by 2030 — building a viable business case remains challenging. Two key barriers stand out: limited access to high-quality feedstock and the lack of large-scale infrastructure.

Low collection rates, insufficient sorting incentives, and high material losses in pre-processing restrict the availability of suitable feedstock. In addition, high energy and labour costs emphasize the need for energy-efficient processes and access to affordable renewables.

Unlocking progress will require regulatory levers such as mandatory recycled content targets, eco-modulated EPR, improved product design, investment in automation, and blended finance models. However, better data and harmonised EU-wide systems for tracking textile waste are critical to guide future investment and innovation.