The EU lawmakers agreed on new rules and strict targets for reducing food and textile waste. The decision came from the increasing numbers of waste from both industries. To be specific, every year, 12.6 million tonnes of textile waste and about 60 million tonnes of food waste (132 kg per person) are produced in the EU. The new rules are expected to decrease these numbers and significantly promote sustainability across the countries. 

Private market firms, impact investors, and asset managers with portfolio companies operating in the EU may need to factor in textile and food waste reduction targets in their investment strategies and product development to make the most out of this opportunity. 

Let’s explore what’s the deal with new rules for food and textile waste in the EU. 

New EU rules and targets on food waste

The recent agreement on new rules introduces a binding food waste reduction target for member nations, and the deadline for meeting the target is December 31, 2030. In particular, the targets include:

• Waste reduction of 10% from manufacturing and food processing.
• Per capita decrease of 30% in residential, restaurant, retail, and food service waste.

The above goals will be calculated by comparing them to the average annual amount earned between 2021 and 2023. Additionally, the EU Parliament has asked countries to ensure that businesses involved in food waste prevention and production (as defined by each country) help donate unsold but safe-to-eat food.

New EU rules and targets on textile waste

The deal establishes that EU countries have to create Extended Producer Responsibility (EPR) provisions to manage textile waste, requiring textile manufacturers to pay for the collection, sorting, and recycling of their goods. The important terms of the provision are: 

• Producers need to comply with the directive within 30 months of its implementation.

• Microbusinesses will be given an extra year to fulfill these responsibilities.
• Regardless of where they are located, the rules are applicable to all producers, including those who use e-commerce platforms. 

The EPR provisions will include a variety of textile products such as apparel, blankets, shoes, accessories, and even beds. Additionally, while deciding how much money to contribute to these programs, member nations are urged to consider ultra-fast fashion concerns.

Next steps

Both the European Parliament and the Council are now scheduled to go through formal approval processes for the interim accord. 

The proposed regulations, if approved, will represent a major step toward a more sustainable future for the EU by holding manufacturers responsible for their waste and establishing aggressive goals for reducing food waste.

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