The introduction of this producer responsibility was already outlined in the federal government’s coalition agreement and was made mandatory under EU law by Directive (EU) 2025/1892, which amended the Waste Framework Directive and entered into force on October 16, 2025. The future German Textile Act is intended not only to implement the requirements of European law but also to address current distortions in the German used textile market, which are attributable in particular to the growth of fast fashion.
The policy paper is open for comment from all stakeholders until April 24, 2026. The regulations outlined therein will have significant implications for the entire textile value chain—from product design and placing on the market to disposal and recycling.
I. Background and Objectives
Extended producer responsibility for textiles is part of a broader set of measures aimed at making the textile sector more sustainable and circular, including the national circular economy strategy, the EU Waste Shipment Regulation, and EU ecodesign requirements. A key concern of the Federal Ministry for the Environment is to avoid creating excessive bureaucracy during national implementation. Therefore, existing, efficient collection and administrative structures should primarily be utilized, adapted to the textile sector, and further developed. This pragmatic approach avoids a complete overhaul of the used textile sector and combines proven structures with the new EU legal requirements.
II. Scope of Application
The scope of the proposed Textiles Act covers clothing, clothing accessories, home textiles, and footwear, thereby fully implementing the Combined Nomenclature codes (CN codes) set forth in Directive (EU) 2025/1892. This also includes clothing that is no longer wearable, meaning that approximately 96% of the used textiles currently collected from private households are covered.
Other product groups, such as bags, plush toys, and stuffed animals, may continue to be collected together with textiles subject to extended producer responsibility if this is agreed upon between the public waste management authority and the producer responsibility organizations; however, they are not subject to extended producer responsibility, meaning there are no collection or recycling obligations for their production.
III. Obligations of producers
Textile producers, as the entities responsible for extended producer responsibility, play a central role in the implementation of these measures.
- Definition of producer and registration requirement: Under the proposed Textile Act, a “producer” is any company that first places textiles on the German market. This may be the producer, the importer, or the distributor of the textiles in question. All producers are required to register with the competent authority before placing their products on the market. Producers that are not based in Germany must appoint an authorized representative to fulfill their obligations.
- Participation in a producer responsibility organization: Producers must participate in a producer responsibility organization that carries out the tasks of extended producer responsibility. This implements the EU legal obligation to establish waste collection systems for used textiles and to bear the costs, in particular for collection, transport, sorting, and recovery. Producers may choose among several producer responsibility organizations that are being established; they may also fulfill extended producer responsibility individually by establishing their own organization.
- Financial responsibility: Textile producers bear extended producer responsibility and are therefore financially responsible, among other things, for the collection, transport, sorting, and proper recycling of used textiles. This financial responsibility is managed through membership fees paid to producer responsibility organizations. The calculation of contributions is primarily based on the quantity of textiles placed on the market for the first time. In addition, qualitative criteria under Article 8a of the Waste Framework Directive must be taken into account, such as durability, reparability, reusability, recyclability, and the presence of hazardous substances. The more environmentally friendly and sustainable the textile product is, the lower the contribution to be paid, thereby creating financial incentives for more environmentally friendly product design. The producer responsibility organizations report annually to the Federal Environment Agency on the eco-modulation of contributions. In the future, fee differentials, bonus-malus systems, or fund models may be implemented.
- Effects for Online Platform and Fulfillment Service Providers involvement: Online platforms may only allow products to be offered on their marketplaces if the producer of the textiles is properly registered. Fulfillment service providers must also verify whether producers are registered. This regulation corresponds to the mechanism established under the Packaging Act and is intended to ensure compliance with manufacturers’ obligations, particularly in online commerce.
IV. Collection of used textiles
Organizations responsible for producer responsibility are responsible for the comprehensive collection of used textiles. Each organization must achieve a collection rate of 70% through its collection and take-back network, calculated based on the quantity of materials first made available by affiliated manufacturers in the previous year. There are currently no plans to require retailers to accept returns at the point of sale.
Public waste management authorities are obligated to cooperate with a producer responsibility organization; however, they may “opt out” and declare for a calendar year that they will carry out the recovery of the collected used textiles themselves.
Non-profit collectors under Section 3(17) of the KrWG remain exempt under EU law and may continue to collect on a voluntary basis without being required to file a report under Section 18 of the KrWG. Although they must join a producer responsibility organization, they may decide for themselves whether to hand over the collected used textiles.
Commercial collectors under Section 3(18) of the KrWG and distributors may continue to collect used textiles as before, but must join a producer responsibility organization and hand over the collected used textiles to it for further recycling.
Thrift stores, social department stores, and clothing banks are not affected, provided they only accept textiles that are still wearable, as these do not constitute waste.
V. Sorting and recycling of used textiles
Collected used textiles must first undergo an initial screening to remove foreign and disruptive materials and then be properly recycled in accordance with the waste hierarchy. Sorting is mandatory to ensure high-quality preparation for reuse in terms of both quantity and quality. Suitable used textiles can thereby cease to be considered waste.
The following targets must be achieved in the future:
• Recovery rate (preparation for reuse + recycling + other recovery / total collected volume): 95%
• Recycling rate (preparation for reuse + recycling / total collected volume): 85%
The targets must be reviewed regularly by the legislature and adjusted as necessary. In this context, reporting should also specify the quantities that were sent for fiber-to-fiber recycling.
When exporting used textiles, extensive documentation must be provided regarding, for example, sales, sorting procedures, and the contents of the shipment. Additionally, the Waste Shipment Ordinance applies, with stricter requirements in the future, including for the export of non-hazardous waste to non-OECD countries.
Conclusion and outlook
The key issues paper published on March 27, 2026, marks a fundamental systemic change in the German used textile sector and will have far-reaching implications for manufacturers, producer responsibility organizations, collection operators, and the recycling industry.
The approach of utilizing and further developing existing collection systems is generally to be welcomed. At the same time, the ambitious targets set high standards that go beyond the minimum requirements under EU law. Eco-modulation creates important incentives for more sustainable product design and can help curb fast fashion.
The implementation deadline for Directive (EU) 2025/1892 is June 17, 2027. The key issues paper is open for comments until April 24, 2026. Stakeholders are well advised to use this period to highlight outstanding issues and ambiguities. At the same time, they should begin preparations for implementing the new requirements now in order to be compliant well before the law takes effect.
Do you have any questions about this news, or would you like to discuss it with the author? Please contact: Michael Öttinger
