GFA Policy Matrix – Regulatory Updates March 2025
As we closely monitor fashion’s global legislative evolution, we zoom into GFA’s Policy Matrix: Americas and EU editions, offering more clarity and updates on emerging and existing legislation. Since the last review, these are the key updates.
The European Commission recently unveiled its 2025 work program, outlining key priorities for the year, as well as a communication on the Competitiveness Compass for the EU, which charts the course for the next five years and proposes measures to enhance Europe’s economic dynamism. Both documents highlight upcoming legislation that may significantly impact the textile industry, amongst which the Water Resilience Strategy (Q2 2025), aimed at strengthening Europe’s water security, the Chemicals Industry Package (Q4 2025), intended to simplify the REACH regulation and provide clearer guidance on “forever chemicals”, and the EU Bioeconomy Strategy (Q4 2025), designed to foster a more circular and sustainable approach to the production, use, and consumption of biological resources.
On 26 February 2025, the European Commission released the Omnibus Simplification Package to streamline and simplify existing corporate sustainability rules across several key policies, reducing administrative burdens on EU businesses. The Omnibus would amend:
The Clean Industrial Deal, released on the same day, aims to accelerate the transition towards a more sustainable and competitive industrial sector in the EU, by reducing the environmental impact of industries while boosting innovation, clean technology, and circularity. Published as part of the Deal, the Affordable Energy Action Plan outlines measures to lower energy costs for industries, businesses, and households, and improve energy efficiency. Additionally, the Circular Economy Act, set to be published in 2026, will accelerate the shift toward more sustainable production and consumption patterns. The Act will seek to boost investment in recycling capacity, encourage EU industries to effectively replace virgin materials, and reduce the landfilling and incineration of used materials.
Several other important textile initiatives have also seen significant developments in recent months, including:
Social: The publication of the Forced Labor Regulation according to which Member States have three years starting 13 December 2024 to implement a series of measures to ensure that no goods produced with forced labor enter the EU market.
Transparency: Regulation on Environmental, Social, and Governance (ESG) ratings now published in the EU Official Journal and establishing rules for increased consistency and transparency in ESG ratings for companies starting to apply on 2 July 2026 and -on the other hand- the kick-off on 28 January of the trilogue negotiations on the Green Claims Directive. The latter seeks to improve the accuracy of environmental claims made by companies and is expected to introduce several important measures including standardised criteria for verifying environmental claims and mandatory third-party verification for certain claims.
Waste: An initiative designed to reduce packaging waste and improve packaging recycling (revision of the Packaging and Packaging Waste Regulation), has now been published in the EU Official Journal and will apply starting 12 August 2026. In addition, the revision of the Waste Framework Directive, set to establish a mandatory EPR scheme for textiles in the EU, saw a provisional agreement reached by the Council and Parliament on 19 February 2025. The agreement requires EU countries to establish EPR schemes within 30 months of the directive’s entry into force and to address ultra-fast fashion and fast fashion practices when setting out the financial contributions to the EPR schemes.
On 21 December 2024, the New York State Governor signed the Fashion Workers Act into law, which is set to take effect on 19 June 2025. The law aims to protect models and content creators in the fashion industry by establishing essential labour projections. This includes ensuring models receive copies of their contracts and enforcing a zero-tolerance policy for abuse.
In California, the Voluntary Carbon Market Disclosures Act became effective on 1 January 2025. This legislation requires companies making emissions reduction or carbon neutrality claims to provide detailed disclosures to California consumers online. Companies must disclose details about their offset projects, along with all supporting information that verifies the accuracy of their claims, or they will incur penalties.
On 20 January 2025, Washington State proposed a bill to establish a statewide extended producer responsibility (EPR) scheme for apparel and textile products. The bill mandates that by January 1, 2027, producers must either register with the state Department of Ecology as a producer responsibility organization (PRO) or join an existing PRO. Additionally, they must develop comprehensive plans to manage their products throughout their lifecycle.
On 4 February 2025, California introduced a bill aiming at reducing industry emissions and regulating chemical use in the fashion sector. If passed, the bill would require fashion brands earning over $100 million in global revenue, and that sell in California, to set and meet science-based emissions reduction targets and manage toxic chemical use across their supply chains.
At the Federal level, key strategies were introduced in January 2025: the U.S.’s first-ever Trade Strategy to Combat Forced Labour, which outlines both current and future actions and trade tools used to address forced labour, and the Strategies to Eliminate Waste and Accelerate Recycling Development Act, a bill designed to strengthen the country’s recycling systems and enhance data collection on recycled materials. The bill notably mandates the Environmental Protection Agency to study the proportion of recyclable materials, including textiles, which were diverted from the circular market due to disposal or elimination over a 10-year period.
As we mark International Women’s Day, it is important to reflect on the persistent gender inequalities embedded in the fashion industry—an industry powered predominantly by women yet largely led by men.
Welcome to the second edition of "The Policy Pulse" where we dive deep into discussions with some of the most relevant policymakers who are playing a key role in defining the future of the textile industry.
This article is a contribution from Next Gen Assembly 2024 Member, Hannah Lauren Riley.
