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Feasibility Study Textile Recycling Feasibility Study Textile Recycling Commissioned by the Netherlands Enterprise Agency Feasibility Study Textile Recycling PST20PK01 Table of Contents BACKGROUND ............................................................................................................................ 2 Recycled Cotton in Pakistan ................................................................................................................................... 3 FEASIBILITY STUDY TEXTILE RECYCLING ..................................................................................... 3 PARTNERS .................................................................................................................................. 4 Dibella ..................................................................................................................................................................... 4 Lamme Textielbeheer ............................................................................................................................................. 5 Crescent Bahuman .................................................................................................................................................. 5 Crescent Textile Mills .............................................................................................................................................. 6 PROJECT IMPLEMENTATION ...................................................................................................... 6 Recycling process of coloured textiles .................................................................................................................... 7 Activities at Crestex ................................................................................................................................................ 7 Activities at Crescent Bahümán .............................................................................................................................. 8 Economic feasibility .............................................................................................................................................. 14 OTHER RECYCLED FIBRES ......................................................................................................... 15 Recycled Polyester ................................................................................................................................................ 15 Other synthetic fibres ........................................................................................................................................... 18 LESSONS LEARNT ...................................................................................................................... 18 Transparency & Traceability ................................................................................................................................. 19 Partnership approach ........................................................................................................................................... 19 Flexibility ............................................................................................................................................................... 20 Design ................................................................................................................................................................... 21 Practical considerations ........................................................................................................................................ 21 Fabric recycling ..................................................................................................................................................... 22 FEASIBILITY STUDY CONCLUSION ............................................................................................ 23 PSD TOOLKIT INDICATORS ....................................................................................................... 24 ANNEX ...................................................................................................................................... 23 Stakeholders and key players in Circular Textile & Footwear Industries ............................................................. 23 CSI Ltd. • 43/F, AIA Building, 183 Electric Road, North Point, Hong Kong 1 / 32 [email protected] • Phone: +852 2363 1019 Background Climate change is a stark reality, staring humanity into the face. This challenge needs to be addressed with a realistic and effective approach. Circular economy is one of the prime approaches that can reduce negative impact on the environment. Recycling is the key to circularity. Under the EU Circular Economy Action Plan, member states will increasingly collect used textiles. Many states are working towards a circular economy. The Netherlands itself has pledged to become circular by 2050. Regulations regarding recycling are expected to become stricter in the coming years. The textile industry will play a significant role in this development. This means that an increasing amount of textile waste is available in Europe. While there are some recyclers in Europe, they are not the only option. Pakistan being a signatory to the Paris Agreement has committed itself to reduce GHG emissions by up to 30% by 20301. Agriculture, industry and waste management are some of the prime sectors, along with energy and transport that contribute to GHG emissions. Textiles is the biggest sector in Pakistan, and the backbone of the national economy. From cotton production to fibers, yarn and clothing, the sector has the potential to become a key player in sustainable fashion and environmentally friendly practices. Use of recycled fibers in the textile industry needs to be encouraged as it addresses multiple components of circular economy and contributes to sustainable consumption. From a mere commercial perspective, this is also a win-win situation; as most studies in the recent past have shown an increasing trend towards preference for greener products in the consumer markets. Not only this, but the percentage of consumers who are willing to pay for greener products has been on the rise2. The advent of green consumerism has forced leading textile retail organizations to develop more sustainable products in order to stay relevant. 1 Pakistan INDC report submitted to UNFCC. https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Pakistan%20First/Pak-INDC.pdf 2 https://econlife.com/2019/04/paying-for-green-products/ CSI Ltd. • 43/F, AIA Building, 183 Electric Road, North Point, Hong Kong 2 / 32 [email protected] • Phone: +852 2363 1019 Pakistan has the potential to become a key partner to the EU as textile recycling and manufacturing market. After consumers have finished using their product, it could be collected and sorted within the EU. Once it is sorted, it can be shredded into fibre in Pakistan, where it can also be used for manufacturing new products for import into the EU. With already existing tools for transparency and low shipping cost, this arrangement is a realistic and practical contribution to a circular EU. Recycled Cotton in Pakistan In Pakistan, the Better Cotton Initiative (BCI) has been engaged in sustainable cotton production since 2010. In the year 2018-2019, BCI farmers in the country produced 906,000 tonnes of Better Cotton which made Pakistan the second largest producer of Better Cotton, after Brazil3. During 2020-21 crop season BCI implementing partners trained more than 500,000 cotton farmers on sustainable cotton production and it is expected that close to 1 million MT of Better Cotton (more sustainable cotton) fibre will be produced by Pakistani farmers during 2020-21 crop season. Better Cotton farming has demonstrated considerably lower pesticide, fertilizer and water use than conventional cotton and better net profit for farmers. World key retailers and brands e.g., IKEA, LEVIS4, H&M, Zara, Decathlon, Nike, Adidas, Tesco, Target, Mango Woolworth etc. are currently sourcing Better Cotton from Pakistan5. Cotton is also recovered for recycling, both from post-industrial paste (PIW) as well as from the post- consumer waste (PCW). The post-consumer waste previously used to end up in landfills. Of late, it has been collected and recycled. However, this category has certain limitations. • Length of cotton fibre decreases because of shredding which is part of the recycling process. • Strength decreases, hence, 100% cannot be used. Recycled recovery ratio is up to a maximum of 40-50%. • Since cotton is dyed during first production, there are colour limitations in the waste, which needs to be sorted according to the respective colours. In general, whites and denims are easier to recycle, while the rest have to be matched. • Some waste cannot be recycled/reprocessed and are used for paddings/gol takkia. Feasibility Study Textile Recycling On behalf of the Dutch government, a case study to test the feasibility of realising a circular supply chain between a Dutch company and a Pakistani manufacturer, with particular focus on recycled coloured linen, has been conducted. While large companies are able to develop individual solutions using a variety of approaches, small and medium sized enterprises often lack the means and network to realise circularity. The study aimed to provide solutions that are easily implementable by European SME with recycling and manufacturers in Pakistan. 3 BCI: https://preview.shorthand.com/uesMKrMyIAsDuxM3#group-Pakistan-5W2WY4lPbD
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