A 10 per cent textile-to-textile recycling rate by 2035 could cut CO₂ emissions by 440,000 tonnes annually and ease water scarcity by over 3 per cent, said IVL.
With current rates at just 1 per cent, advanced recycling could boost it to 26 per cent by 2030.
The study has urged EU policy support to improve fibre recycling efficiency and infrastructure.