Senior Associate
On July 4, 2025, Chile’s Ministry of the Environment (MMA, for its Spanish acronym) officially declared textiles a priority product under Law No. 20,920 on Extended Producer Responsibility (known as the REP Law), through Exempt Resolution No. 3914/2025. This milestone marks a turning point for Chile’s fashion ecosystem by establishing a legal framework that requires stakeholders in the textile supply chain, from designers and brands to importers and distributors, to assume legal and financial responsibility for managing waste generated by their products.
What does this mean from a Fashion Law perspective?
The resolution introduces new regulatory obligations that directly impact the business models of the textile and fashion industries. Producers and importers must register with the Pollutant Release and Transfer Register (RETC) and submit annual declarations on the volumes of textiles placed on the market. The process has begun for drafting a Supreme Decree that will set binding targets for collection, recovery, and recycling, along with monitoring and enforcement mechanisms. The principle of product traceability is also incorporated, requiring brands to know and document the complete life cycle of their garments, from production to end-of-life disposal. This move promotes supply chain transparency and aligns with international standards such as the EU Strategy for Sustainable and Circular Textiles[1] and environmental due diligence principles.
Impact on the Fashion Industry
The textile industry is one of the most polluting in the world. In Chile, more than 572,000 tons of textile waste are generated annually, and 92% of textiles are imported, many as low-quality second-hand clothing. The country is the world’s fourth-largest importer of second-hand garments, yet less than 1% of textiles are recycled into new clothing[2].
The goals of this new regulation are to:
- Discourage fast fashion[3].
- Promote slow fashion[4] models based on durability, repair, and reuse.
- Regulate the trade of second-hand clothing by setting minimum quality standards to prevent the saturation of illegal landfills, such as those in the Atacama Desert.
- Strengthen circular trades such as tailoring, independent design, upcycling[5], and textile refurbishment.
- Encourage innovation in sustainable materials, including recycled fibers, biodegradable options, and textiles with low water and chemical footprints.
Regulatory process: What’s next?
The drafting of the decree that will regulate textiles follows Supreme Decree No. 8/2017 of the MMA, which includes:
- Formal initiation of the process with deadlines for submitting background information (45 days) and preparing the draft regulation (6 months).
- Public and technical participation, including consultations with industry stakeholders in fashion, recycling, academia, and NGOs.
- Economic and social impact analysis, considering environmental externalities, compliance costs, and green job opportunities.
- Issuance of the Supreme Decree, to be approved by the Council of Ministers for Sustainability and subject to appeal before the Environmental Court.
Towards a legally and environmentally responsible fashion sector
The inclusion of textiles under the REP Law is not only a step forward in environmental law but also an opportunity to redefine the legal framework for fashion in Chile. Brands will need to adapt to a new paradigm where sustainability is not optional but a legal obligation. This regulatory change paves the way for an industry that is more ethical, circular, and aligned with the climate and social challenges of the 21st century.
________________________________________________________________
[1] The EU Strategy for Sustainable and Circular Textiles is a comprehensive plan aimed at making the textile industry more environmentally friendly and circular. It covers the entire life cycle of textiles, from design and production to consumption and waste management, with the aim of reducing the sector’s environmental footprint and promoting resource efficiency. The strategy is a key part of the European Green Deal and the Circular Economy Action Plan, and aims to create a more environmentally friendly, competitive and resilient textile industry.
[2] Ministry of the Environment declares textiles a priority product under the Recycling Act – https://mma.gob.cl/es-oficial-ministerio-del-medio-ambiente-declara-a-los-textiles-como-producto-prioritario-de-la-ley-del-reciclaje/
[3] The concept of fast fashion refers to a model of production and consumption in the textile industry characterized by the rapid production of clothing in large volumes and at low cost. Obviously, this also means a very short life cycle. This practice has serious environmental impacts, such as water pollution and high carbon emissions.
[4] The concept of slow fashion is a philosophy and movement in the fashion industry that focuses on the production and consumption of clothing in a more conscious, sustainable, and ethical manner, in contrast to fast fashion. It focuses on the quality, durability, and traceability of garments, as well as respect for the people, the environment, and the animals involved in the creation process.
[5] The concept of upcycling, or creative recycling, is the art of transforming something you no longer use into something surprisingly new and valuable. Unlike recycling, which breaks down materials to make something completely new, upcycling focuses on revitalizing conventional objects, which are usually original, by enhancing their quality, functionality or style without completely dismantling them.