BERLIN – The German state of Brandenburg could strengthen its economy and sustainability performance through a circular textile sector that embraces new technical innovation, according to a new policy paper.
Drawing on findings from a feasibility study, funded by the Brandenburg Ministry of Climate Protection, the report outlines how low-grade textile waste can be integrated into new value chains using new techniques.
The ‘Closing the Loop in the Textile Industry’ report also claims to outline a practical roadmap for building regional circular textile economies — starting in Brandenburg, which is designed to be eventually replicated across Europe.
And with potential for collaborators in countries such as Poland and the Netherlands, the authors argue the German state could become a model region for EU circular textile initiatives – while retaining local value creation and skilled employment.
It states that with the right investment and regulation, Europe can turn its textile waste into a “climate and innovation opportunity”, keeping value in the region rather than exporting it abroad.
The study was carried out by the Fraunhofer Institute for Applied Polymer Research IAP, Beneficial Design Institute GmbH and Matter GmbH, which investigated converting polyester-containing waste textiles into the bioplastic polyhydroxybutyrate (PHB).
The study shows how bacterial fermentation was successfully used to convert the lowest category of textile waste – previously considered worthless – into PHB, which it says is both processable and biodegradable.
Using a proprietary process, Fraunhofer researchers recovered virgin-quality monomers – terephthalic acid (TA) and ethylene glycol (EG) – from waste polyester suitable for producing new polyester fibres.
EG was converted into PHB using bacterial fermentation – an already well-known process.
“PHB is one of the few bioplastics that is fully biodegradable, resorbable, and biocompatible,” says study author Prof. Friederike von Wedel-Parlow of the Beneficial Design Institute.
“It combines ecological advantages with economic potential in new markets. Our research has shown that design, science, and industry can work together to develop solutions that harness these benefits for society and the economy — and make eco-design thinking a success, including for Brandenburg.”
Key actions
The policy paper recommends six key actions to build a circular textile economy in Brandenburg:
- Supporting start-ups and regional textile biorefineries.
- Funding R&D on textile waste recycling technologies.
- Establishing a competence cluster for data-driven textile circularity.
- Promoting digital data collection across the textile value chain.
- Qualifying companies for the Ecodesign Directive 2026.
- Integrating local firms into European value chains under the EU “Regional Innovation Valleys for Circular Economy” initiative.
The textile sector is one of the most resource-intensive industries, generating large volumes of waste and emissions. In 2020 alone, the EU produced around 6.95 million tonnes of textile waste, while worldwide levels reached 92 million tonnes, much of it sent to landfills in the Global South or incinerated.
Polyester-based mixed waste from fast fashion, workwear and industrial cleaning textiles remains particularly hard to recycle, prompting EU backing for circular processes through its Circular Economy Strategy.




