Used Textile Collection at a Tipping Point: bvse Calls for Five Cents per Kilogram in Bridging Aid

The infrastructure for used textile collection in Germany is facing an acute existential threat. In an official letter addressed to the environment and economic affairs ministries of the German federal states, the German Federal Association for Secondary Raw Materials and Waste Management (bvse – Bundesverband Sekundärrohstoffe und Entsorgung) has called on state governments and municipalities to provide temporary bridging financing of at least five euro cents per kilogram of collected used textiles. The proposed emergency measure aims to safeguard economically endangered collection and sorting structures until the mandatory introduction of Extended Producer Responsibility (EPR) in April 2028.

In short: In a press release published on November 3, 2026, the German industry association bvse urged federal states and municipalities to grant a temporary bridging subsidy of at least 5 cents per kilogram of collected used textiles. Declining garment quality driven by fast and ultra-fast fashion, rising operational costs for collection, sorting, and disposal, and export market disruptions caused by the war in Ukraine and US–Iran tensions have created an unsustainable financing gap. Without immediate targeted aid before the EU textile EPR deadline on April 17, 2028, bvse warns of further business closures, irreversible loss of medium-sized sorting infrastructure, and increased incineration of used textiles.

Why Used Textile Collection Is Facing an Acute Financial Crisis

The economic situation for operators specializing in used textile collection has deteriorated sharply. According to the bvse, companies across the sector are caught between falling revenues and escalating operational expenditures:

• Declining Quality and Falling Revenues: The proliferation of fast fashion and ultra-fast fashion is severely degrading the quality of collected garments, which directly depresses sales revenues on secondary markets.

• Rising Operational and Disposal Costs: Simultaneously, collection and sorting businesses are burdened by rising expenses for gathering, sorting, and disposing of non-recyclable components found in collection containers.

• International Export Disruptions: Domestic cost pressures are compounded by severe sales problems on international markets. The war in Ukraine has disrupted established export routes, while geopolitical tensions between the United States and Iran are jeopardizing vital destination markets in the Middle East.

Eric Rehbock, Managing Director of bvse-Recycling Germany, emphasized that these combined pressures have created a substantial financing gap for many operations—a deficit that companies can no longer close through their own resources. Rehbock warned that without short-term financial backing, the industry faces further business closures and coverage gaps in the collection of used textiles, bringing fatal consequences for the circular economy.

Infrastructure at a Tipping Point: Risk of Incineration and SME Closures

According to Rehbock, Germany’s textile collection system has reached a critical tipping point. He stressed that policymakers cannot simply wait until 2028 and watch as the collection system collapses economically. If small and medium-sized collection and sorting enterprises are forced to cease operations now, Germany will lose an infrastructure that is indispensable for a circular textile economy. (On the regulatory side of keeping sorted garments in circulation, see our earlier analysis of the JRC proposal on end-of-waste criteria for textiles.)

The association highlighted that any operational capacity lost during the current downturn could only be rebuilt later with substantial financial and organizational effort. Furthermore, the breakdown of sorting and collection structures carries the immediate risk that an even larger volume of used textiles will end up being incinerated in the future—a scenario that Rehbock described as a fatal signal for the German circular economy.

Emergency Demands: 5 Cents per Kilo and Fee-Free Contaminant Disposal

To prevent additional company closures, the official bvse press release outlines specific immediate measures requested from the federal states and local authorities:

1. At Least 5 Cents per Kilogram in Bridging Aid: The implementation of a temporary bridging subsidy amounting to a minimum of five euro cents for every kilogram of collected used textiles.

2. Targeted Distribution of Funds: Financial resources provided by the federal states and municipalities must directly and specifically reach the enterprises that actually bear the costs of collection, sorting, and disposal.

3. Free Acceptance of Contaminants at Municipal Facilities: As a concrete operational relief measure, the bvse proposes that municipal depots and recycling centers (kommunale Betriebs- und Wertstoffhöfe) accept foreign matter and contaminants (Fremd- und Störstoffe) extracted during textile sorting free of charge.

4. Nationwide Policy Coordination: The association is pushing for a coordinated nationwide approach, urging the environment and economic ministries of the federal states to address the financing crisis immediately and develop a viable transitional solution together with the federal government.

European Competition and the April 2028 EU EPR Deadline

In its appeal, the bvse also pointed to existing financial support measures for textile collection already implemented in other European countries. Without comparable domestic assistance, German collection companies face the threat of additional competitive disadvantages within the European single market. Rehbock stated that Germany must act now to ensure fair competition across Europe.

The association urged state governments to take immediate steps to stabilize the sector, noting that existing collection and sorting capacities are vital for the upcoming Extended Producer Responsibility system. Under the revised European Union Waste Framework Directive summary, EU member states are legally required to establish Extended Producer Responsibility (EPR) schemes for textiles by April 17, 2028. Once these systems are operational, textile producers will be required to cover the costs of collecting, sorting, and treating used textiles—making bridging support essential to keep sorting operators alive until the mandate takes effect.

Frequently Asked Questions (FAQ)

How much bridging aid is the bvse demanding for used textile collection?

The bvse (German Federal Association for Secondary Raw Materials and Waste Management) is calling on German federal states and municipalities to provide a temporary bridging subsidy of at least five euro cents per kilogram (5 cents/kg) of collected used textiles.

What factors are driving the financial crisis in the German textile recycling sector?

The crisis is driven by declining garment quality and lower resale revenues due to fast and ultra-fast fashion, rising costs for collection, sorting, and waste disposal, and international export disruptions caused by the war in Ukraine and tensions between the US and Iran.

What practical measure does bvse propose for municipal recycling centers?

Alongside direct financial aid of five cents per kilogram, the bvse proposes that municipal depots and recycling centers accept foreign materials and non-recyclable contaminants separated during used textile collection free of charge.

When must EU member states implement Extended Producer Responsibility (EPR) for textiles?

Under the revised EU Waste Framework Directive, all member states must establish Extended Producer Responsibility (EPR) systems for textiles by April 17, 2028, shifting the costs of collection, sorting, and treatment to producers.

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