Circular Economy in the Textile Industry: Evidence from the Prato District

The transition towards a Circular Economy is a topic of great concern for the textile and fashion industry, since such industry is one of the main polluting in the world. Although Circular Economy is now on the rise in the academia and on the policy agendas, this model is still underdeveloped in practice. Unlike polyester, wool has long been compatible with recycling processes, thus reducing environmental impact and contributing to closing the loop in a Circular Economy. In this context, the industrial district of Prato (Italy) has successfully established a woollen industry based on recycled wool since centuries. Thus, this paper presents three case studies of companies operating in the Prato district, to explore challenges and opportunities of Circular Economy in the textile industry. Design, legislation and competences emerged as the main challenges preventing the uptake, on a larger scale, of this model.