A new assessment framework helps textile recyclers and investors move forward

The circular textile chain can only grow if innovative recycling companies gain access to appropriate financing. With the report ‘Chemical Textile Recycling in the Netherlands’, Invest-NL shares insights from the textile recycling market and introduces a practical assessment framework for companies and investors. The report has been prepared by Haskoning on behalf of Invest-NL.

Insights for scaling up

The report outlines the main challenges and success factors for scaling up textile recycling. It shows that technological innovation alone is not sufficient. Access to raw materials, markets, financing, and collaboration within the supply chain also determine whether companies can successfully grow.

The analysis also indicates that different recycling technologies often complement each other rather than compete. This underscores the importance of collaboration within the supply chain to enable a circular textile sector.

Practical framework for entrepreneurs and investors

In addition to these insights, the report contains a benchmarking and assessment framework that allows recycling companies to evaluate their readiness to invest. At the same time, it provides investors with a structured method to identify opportunities and risks associated with investments in textile recycling.

With this, Invest-NL helps entrepreneurs better prepare for financing and supports investors in making well-informed investment decisions.

Building financeable supply chains

For Invest-NL, this represents the next step in developing financial solutions for the circular economy. Previously, Invest-NL demonstrated through the report on the business case of the Dutch sorting sector what system conditions are necessary for a future-proof textile supply chain. This new report focuses on the companies that help realise that supply chain.

The approach builds on experiences from other sectors, where similar investment frameworks have contributed to better bankability and accelerated scaling. Invest-NL also applies this knowledge to other transitions and sectors, including the Biobased & Circular Economy.