New research: Regulated textile product stewardship in Aotearoa could add $602 million to the economy

Imagine a thriving textile and fashion sector in Aotearoa New Zealand where a level playing field exists for all businesses, affordable clothing remains accessible for everyone, and circular economy design practices create more jobs.

New research by Eunomia Regulated Product Stewardship for Textiles in Aotearoa New Zealand, a cost benefit analysis (CBA), that was commissioned by the Textile Advisory Group with funding from Clare Foundation, shows this future is not only possible but economically beneficial. Regulated product stewardship (RPS) is the foundation of a resilient, fair and thriving textile industry in Aotearoa New Zealand, says Textile Advisory Group spokesperson Bernadette Casey. “RPS supports a stable textile industry in Aotearoa New Zealand and this is especially important in times of uncertainty” Casey says. “We now have research that shows the economics of RPS not only stack up but could bring significant benefits to Aotearoa New Zealand.”

The report outlines two regulated product stewardship pathways, a modest and a high‑ambition option. It estimates a net benefit of $98m over ten years under the modest scenario, increasing to $602m under the more ambitious approach. Both options would also deliver significant environmental and social benefits for the sector and Aotearoa New Zealand.

RPS for textiles would generate funding for research and circular design, infrastructure and systems for reuse and recycling, and consumer education campaigns. A high ambition scheme would go further with kerbside textile collection, digital product passports, and would result in significantly higher reuse and recycling.

Key findings include:

● A $98 million net benefit under the modest RPS scenario and a $602 million net benefit for the high ambition scenario.
● Employment could grow by up to 6% by 2038. With opportunities across repair, reuse, recycling, research and innovation, and consumer engagement.
● Currently, 78% of textiles end up in landfill (107,000 tonnes/year), with just 6% reused or recycled in New Zealand.
● Under a high ambition RPS scheme, landfill could fall to just 4% by 2038, with a 23% reduction in consumption, and 86% of what is bought, reused or recycled.
● For regular (mid-price) fashion items, price would increase by 1.8% on a modest ambition scenario and 2.9% for high ambition RPS.
● For super fast-fashion, the retail price would increase 7% and 11% under the different scenarios (for a $25 top this would be a $1.80 or $2.90 increase respectively). Properly funded reuse (e.g. hire/lease) and repair initiatives, meanwhile, would improve access to good quality clothing.
● Carbon emissions could be reduced by up to 10.8 million tonnes by 2038, with carbon reduction benefits valued at $900 million under the low ambition scenario and $1.6 billion under the high ambition.

A well‑designed RPS would introduce compliance and funding obligations for producers, with most costs falling on low‑quality imports. However, the research shows the overall benefits outweigh these costs by reducing pressure on local councils’ waste systems, increasing the value of recycled materials, and creating new revenue streams for New Zealand businesses.

Eco‑modulated incentives are a key part of RPS and reward producers for improving durability, repairability and recyclability. Incentivising better product design encourages investment in durable and repairable textiles, as well as in reuse.
Consumers, while potentially paying a little more up front, would benefit from higher quality products that deliver better value for money over time.

RPS is the foundation for a strong local textile industry where businesses compete on quality rather than volume; and responsible production supports investment in innovation, textile recycling and circular business models, resulting in increased value for all.

Find the report here.