TexMat wins € 6 million EU backing to roll out deposit return model for textile recycling

A major EU-backed initiative is set to transform how post-consumer clothing and household textiles are collected, reused, and recycled across Europe. The TexMat project, supported by €6 million in funding from the European Union, aims to develop and scale a deposit return scheme (DRS) for used textiles, addressing the mounting environmental impact of textile waste.
Designed to boost collection rates and strengthen reuse and recycling pathways, TexMat introduces a financial incentive that encourages consumers to return unwanted garments rather than discard them. According to Elina Ilén, TexMat project leader at VTT Technical Research Centre of Finland, the system has strong potential to unlock value from used but wearable clothing, supporting second-hand markets while allowing consumers to benefit financially from returning textiles.
At the core of the project is an incentive-based return mechanism, where garments are deposited into automated smart collection containers. These units use advanced technologies to assess quality and identify material composition, enabling efficient separation of items suitable for resale, recycling, or regulated disposal. The system also notifies producers when returned products fall under formal waste management requirements, helping companies comply with upcoming EU environmental rules.
A key innovation within TexMat is the use of digital product passports, which store detailed information on how garments are made. Expected to become mandatory across the EU, these passports allow faster and more accurate decisions on reuse and recycling, while reducing dependence on manual sorting and improving data transparency across the textile recovery chain.
The project, funded under the EU’s Horizon Europe research and innovation program, will be tested through pilot schemes in Finland and Spain, focusing on consumer engagement, technical performance, and scalability.
Running until March 2029, TexMat brings together 14 partners from seven EU countries, including research organizations, universities, and industry players across the textile value chain. Estonia’s Protex Balti is contributing expertise in integrating digital product passports into garments, while partners in Spain and Italy are jointly developing the smart containers and digital systems.
