The global production of apparel has doubled in the last two decades, driven by the rise of "fast fashion". This linear business model relies on cheap synthetic fibres derived from fossil fuels (like polyester) and results in massive volumes of textile waste, high water usage, and chemical pollution, creating substantial negative externalities. Governments are under pressure to intervene to drive a transition towards a circular textile economy.
Policy options include market-based mechanisms, such as extended producer responsibility (EPR) fees or taxes on virgin synthetic fibres to penalise high-waste producers. Alternatively, governments can offer financial support, such as subsidies or tax credits for companies utilizing recycled materials and closed-loop technologies. Finally, strict regulatory measures, such as a ban on landfilling unsold garments or mandating minimum recycled content in new apparel, could be implemented to force systemic change.
Evaluate government policies that could be used to encourage a transition from fast fashion to a circular and sustainable textile industry. Use at least one appropriate diagram in your answer.
