The People’s Republic of China is the largest producer and exporter of textile products in the world with an estimated export value of $323 billion in 2022. There are numerous enterprises of different sizes active within this sector,  among which the small-to-medium sized enterprises (MSMEs) seem to dominate. In fact, the small-to-medium sized enterprises account for more than 90% of the total number of enterprises in the country. The magnitude of the numbers and the scarcity of circular economy practices in the textile industry point towards the fact that reforms in the production processes of the small-to-medium sized enterprises could bring positive economic and environmental impacts.

The SWITCH-Asia project “Transitions to circular economy practices in textile and apparel MSMEs along the lifecycle in Huzhou and Shaoxing” aims to facilitate the transition to circular economy practices in the textile and fashion industry in respected cities by 2025. The specific objectives include:

• Improved sustainable management, resource efficiency and adoption of circular economy principles by the local textile and fashion industry;
• Conditions enabled for a conducive policy environment among key stakeholders for circular textile industry in Huzhou and Shaoxing; and
• Increased access of textile and apparel industry to financing for eco-design, recycling investments and clean technology transfer.

The main role of the TAP is to serve as a platform for mobilizing sustainable projects from small-to-medium sized enterprises, supporting them with business models, feasibility study designs and financing match-making opportunities. Using the world-wide local and regional government network, ICLEI and TAP can support the cities of Huzhou and Shaoxing and guide them towards faster transition to circular economy practices in the textile and apparel industry. The specific objectives are:

1. Improve sustainable management and resource efficiency;
2. Enable conditions for a conductive policy environment; and
3. Increase access to financing for eco-design and recycling investments and clean technology transfer.

To meet this goal, the following three main activities will be implemented:

• Mobilization and development of project concepts/interventions;
• Technical assistance for further development with the goal to increase capacity and access finance for 5 shortlisted projects; and
• Connecting projects with PPF providers and financial institutions.

An online event was held to initiate the activity on 2 April 2024. The participants of the event had the chance to:

• Find out multiple access to circular green financing mechanisms and opportunities in the textile sector;
• Learn more on the Transformative Actions Program (TAP);
• Engage TAP partners and other financial institutions in the “Circular economy practices in textile and apparel MSMEs along the lifecycle in Huzhou and Shaoxing” project;
• Initiate the development of TAP project ideas; and
• Establish contact between the project submitter MSMEs and ICLEI.

A field trip was organized on 15-17 May 2024. Find the full program of the field trip here.

During the filed trip, “Peer-to-Peer Exchange: Baseline Study on EU-China Policies for Circular Textile” event was conducted. This event delved into the evolving textile landscapes and regulatory frameworks of both regions, providing critical insights into the Asian and European markets. Find here the program of the Peer-to-Peer Exchange event.