Circular Fashion Policy Dialogue: Summary Report

Held on 29 September 2026 at the Press Club Brussels Europe

On 29 September 2026, the second Circular Fashion Policy Dialogue brought more than 200 participants from over 20 countries to the Press Club Brussels Europe. The European Commission, MEPs, producer responsibility organisations, brands, platforms, and repair, resale and recycling operators met around the two questions that will decide whether circular models can compete: how to harmonise textile EPR, and how to fix a tax system built for the linear economy.

MEP Rasmus Nordqvist opened the morning by arguing that Europe’s single market is its real advantage and that textile policy now needs to move faster. COSE361 and Appinio then presented the first results of the DEX project on extrinsic durability. This led into the first panel on harmonising eco-modulation in textile EPR schemes, moderated by Stéphane Popescu (COSE361), with MEP Delara Burkhardt, Vincenzo Gente (DG ENV), Luca Campadello (Erion Textiles) and Kerli Kant Hvass (Landbell Group).

The second half turned to taxation. The Federation presented its circular VAT white paper, and Valerie Boiten (Ellen MacArthur Foundation) and Marta Inchausti Moya (Global Fashion Agenda) gave keynotes in support. Clara Cherblanc (CFF) then moderated a panel with David Boublil (DG TAXUD), Charlotte Krist (United Repair Centre), Klemen Drole (Vestiaire Collective) and Maria Åkerfeldt (H&M Group). Eric Mamer, Director-General for Environment at the European Commission, closed the event with a preview of the Circular Economy Act.

Key takeaways

EPR: Speakers agreed on the direction: harmonised, transparent and measurable eco-modulation across Europe. The priority is to start with simple, fair criteria and to fund collection, sorting and recycling first, so EPR finances circular alternatives rather than waste.

VAT: Repair and resale are still taxed at standard rates of up to 27%. Only seven Member States apply the reduced rate on repair that EU law already allows. Cutting VAT from 20% to 5.5% would free around 12% of turnover, and operators would reinvest 92% of it in wages, equipment and hiring.

Whats Next

The Circular Economy Act is due in mid-November. The Federation will submit its contribution to the Commission’s VAT consultation before 4 November, and any organisation can endorse it.

The Federation asks for a Reduced VAT on repair, applied by Member States now, extended to all circular services by 2028, and harmonised, transparent EPR criteria in the Circular Economy Act.