On-site Insights: ICEF Highlights Textile Circularity Rate of Just 0.3% 
At Session B-1, “Exploring Circular Economy through Textile Industry and Data Connectivity,” held during the 13th Annual Meeting of Innovation for Cool Earth Forum (ICEF) 2026 at the Westin Tokyo, Japan, on October 8, 2026, participants engaged in wide-ranging discussions on how to overcome the extremely low circularity rate of clothing. Topics included the establishment of advanced recycling technologies and data-sharing infrastructure, as well as the creation of economically viable circular business models.
The session highlighted that recycling apparel, which is increasingly made from blended materials, requires separation technologies such as bio-based and enzymatic processes, as well as collaboration among multiple companies. At the same time, a common challenge was identified in developing data infrastructures driven by regulatory requirements, such as the EU Ecodesign for Sustainable Products Regulation (ESPR) (EU) 2024/1781 and the Digital Product Passport (DPP). Although these frameworks facilitate data collection and management, the secondary use of such data to inform upstream product design has yet to be realized.
Participants also pointed to the significantly higher cost of recycled materials compared with virgin materials and to the lack of adequate treatment infrastructure and traceability associated with the export of used clothing from developed to developing countries. The discussions underscored the importance of government-led demand creation, long-term technological support, and international policy frameworks encompassing the entire supply chain.
Textile Circularity Rate of 0.3% and Material Separation Technologies
According to The Circularity Gap Report 2026, the global economy’s circularity rate stands at only 6.9%, while the circularity rate within the textile industry, measured by the share of recycled inputs, is an exceptionally low 0.3%.
Although global resource extraction has increased to 100 billion metric tons, three times the 1970 level, much of the apparel discarded today is not recycled into new products. A major obstacle is that approximately 70% of clothing consists of blends of two or more materials.
In Japan, efforts are underway to address this challenge through initiatives such as Fiber to Fiber (CFT²: Consortium for Fiber to Fiber), which focuses on material separation, as well as projects supported by New Energy and Industrial Technology Development Organization (NEDO) that utilize bio-based and enzymatic technologies to separate textile materials. However, deploying these advanced technologies requires collaboration among multiple companies, and a key challenge remains how to engage businesses with limited financial and operational resources.
Data Integration and Regulatory Developments in Japan and Europe
Improving the effectiveness of resource circularity requires not only the circulation of physical materials but also the circulation of reliable and verifiable data.
Beyond standardizing information sharing among upstream actors such as material suppliers, component manufacturers, and OEMs, there is a growing need for a bidirectional data-utilization framework that connects information from downstream actors, including collection, dismantling, and recycling companies. Such data may include the quality and supply trends of recycled materials and should be fed back into product design and material selection.
Mr. Taguchi of NTT DATA Corporation introduced advanced examples, including the Chemical and Circular Management Platform (CMP) and battery traceability management systems. However, a common challenge in both Japan and Europe is that current efforts largely focus on data storage and certification. Neither region has yet reached the stage where downstream data are systematically fed back into product design and reused for broader circularity purposes.
High Costs of Recycled Materials and Challenges Associated with Exports to Developing Countries
One of the most significant market barriers identified during the session was the high cost of recycled materials. Compared with virgin polyester, recycled materials are approximately 1.5 times more expensive. For undyed fibers, costs can be two to two-and-a-half times higher and, under certain conditions, may reach as much as seven times the cost of virgin materials.
In Europe, a lack of demand and insufficient infrastructure have contributed to a growing number of recycling company bankruptcies.
Participants also noted that more than 80% of collected clothing is exported to developing countries such as Ghana. While brands pay extended producer responsibility (EPR) fees that are pooled in the countries where products are placed on the market, the countries that actually receive and process large volumes of textile waste often do not receive corresponding financial support. This mismatch creates inequities, particularly as local waste-management infrastructure struggles to keep pace with incoming volumes.
To address these challenges, speakers emphasized the importance of government actions to stimulate demand and provide long-term support for technology deployment and capital investment.
EnviX’s Comment
For manufacturers, adopting circular design principles from the earliest stages of product development is becoming essential. This includes reducing material complexity through the use of single-material designs and improving product disassembly.
Companies should also prepare for Digital Product Passport requirements by structuring and managing material-related data more effectively. At the same time, they will need branding strategies capable of absorbing the higher procurement costs associated with recycled materials.
Furthermore, to respond to regulations governing overseas exports and the growing adoption of EPR systems worldwide, companies will need to establish traceability mechanisms that enable the collection and tracking of their products, making this a key management challenge going forward.
