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Fund collection through cost-indexed EPR support, decoupled from the resale price

#00049

Set the EPR support per tonne to the measured end-to-end cost of collecting, sorting, and disposing of textiles, indexed to rise automatically when resale revenue falls — so collection is a cost-recovered public service funded by producers, not a bet on the export price.

Parent issue

#00046 Voluntary used-clothing collection collapses when the resale market that secretly funds it fails

Sustainable Development Goals

Responsible Consumption and ProductionSustainable Cities and CommunitiesDecent Work and Economic Growth

Description

Mechanism

Under extended producer responsibility (EPR), firms that put clothing on the market fund an eco-organisme (in France, Refashion) which pays collectors and sorters a support per tonne. The fix is to set that per-tonne support to the measured end-to-end cost of collecting, sorting, and responsibly disposing of a tonne — and to let it rise automatically when resale revenue falls, instead of leaving operators to absorb the gap.

The principle: the EPR support, not the export price, becomes the load-bearing revenue line.

Why this is the natural lever in France

The machinery already exists. Refashion is the agreed eco-organisme for textiles, household linen and footwear, funded by a per-item contribution from producers (~€139m in eco-contributions in 2024). What failed was calibration and timing: the per-tonne support sat well below true cost as resale revenue collapsed, and emergency top-ups lagged the crisis by months.

The trajectory illustrates both the lever and the lag: support to conventioned sorters was ~€125/tonne, raised to ~€156/tonne via a €6m emergency envelope in January 2025, then to €223/tonne for 2025 and €228/tonne for 2026 once the state stepped in with an exceptional package (≈€49m for 2025, ≈€57m for 2026) in July 2025. The number can clearly be moved — the design question is making it track cost automatically rather than via repeated political rescues.

What a durable version requires

  • A transparent, audited cost-per-tonne reference (collection + sorting + reject disposal), refreshed regularly.
  • An indexation rule so support rises when resale revenue falls, removing the lag that nearly bankrupted operators.
  • Conditions that protect social-economy operators who carry most capacity, so support is not captured by the lowest-cost, least-social bidder.

Honest limits

This stabilises funding but does nothing about cost — it pays to process fast-fashion rejects rather than reducing them (that is the upstream sibling solution). It also depends on producer contributions being large enough; if the per-item fee stays small while volumes grow, the maths still strains. EPR support is the floor that keeps the service alive, not the thing that makes it efficient.

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