THE POLICY EDGE
Policy Bites

15 October 2025

Global Fashion Brands Pilot Turning Textile Waste into New Fashion via UNIDO-Led Initiative

SDG 9: Industry, Innovation and Infrastructure | SDG 12: Responsible Consumption and Production

Ministry of Textiles MoT | Ministry of Environment, Forest and Climate Change MoEFCC

The United Nations Industrial Development Organization (UNIDO) has announced a partnership between H&M Group and Circ®, a U.S.-based textile recycling innovator, to turn old clothes and fabric waste into new garments. The initiative is part of UNIDO’s SWITCH2CE (Switch to Circular Economy) programme to launch circular fashion products using recycled polycotton textile waste and helping global industries move toward sustainable production.

The pilot began in Bangladesh, where about 2.6 tonnes of poly-cotton waste were converted into usable recycled fibres. The first circular product—a women’s fleece sweatshirt made with Circ® Polyester—will be followed by men’s denim in spring 2026, blending TENCEL™ | Circ® REFIBRA™ fibres that use 30 % recycled pulp from textile waste.

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Lenzing Group, a fibre manufacturer, is supporting the process by integrating the recycled pulp into its existing production lines, showing how industrial partnerships can make recycling commercially viable.

The collaboration demonstrates how technology and business innovation can make the fashion industry more circular. For India which is one of the world’s largest textile producers, it highlights opportunities to invest in fabric recycling technologies, reverse-logistics systems, and green manufacturing incentives to reduce waste and boost sustainable exports.

Relevant Question for Policy Stakeholders:
How can India build similar partnerships between brands, recyclers, and innovators to create large-scale markets for recycled textiles?

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Follow the full news here: https://www.unido.org/news/circr-and-hm-group-advance-circular-fashion-through-unido-led-switch2ce-program

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Rethinking Public Policy Through Insight | Inquiry | Impact

Opinion • Grassroots Voices • Policymakers Perspectives • Expert Analysis • Policy Briefs