The challenges of ‘greening’ globalized industries: Why global supply chains continue to run on fossil fuels
Why do many globalized industries continue rely on fossil fuel-based raw materials, despite the abundance of ‘alternative’ material technologies?
In a recent presentation at the University of Leiden (Department of Ecology), Remass team member Felix Maile spoke about the economics behind the ‘greening’ globalized industries, using the case of the global textile industry.
This industry is dominated by the use of polyester and accounts for 8-10% of global emissions. Recent regulatory changes on circular economy principles in the EU and US have catalyzed the emergence of more than 100 new firms that seek to commercialize novel textile fibers, using biosynthetic and bio-assembly, regenerative cellulosic as well as chemical and thermal textile-to-textile recycling methods.
Yet, none of these firms has reached commercial scale. The main reason: Global fashion brands and retailers are not willing to pay a premium on ‘green’ fibers. As a result, start-ups struggle to obtain finance for large scale production, and their ‘green’ fibers fail to reach price-parity with fossil fuel-based textile fibers.
In sum, the presentation underlined why analyzing corporate strategy, power relations and distributional struggles are key to understanding why some industries de-carbonize, while others fail to do so.
Read the report, co-authored with Lindsay Whitfield (Copenhagen Business School)