Can Europe’s textile and apparel sector beat the energy crisis?

Last week, the European Commission proposed to change the Title Transfer Fund (TTF) benchmark parameters and decouple the TTF from the electricity market and revise the merit-order principle for the electricity market, and amend the state-aid framework.

Yet, the European Textiles Association (EURATEX) believes that under these proposals Europe will remain without its integrated textiles ecosystem, as we know it today, and no means to translate into reality the EU textiles strategy, for more sustainable and circular textiles products.

In the UK, last week saw the welcome introduction of the Energy Bill Relief Scheme by new Prime Minister Liz Truss, which will see a significant cut in energy bills for UK businesses. It has been welcome news to retailers who have seen a jump in overheads and an impact on profits already, particularly for those operating physical stores. The support, however, is only guaranteed for six months leaving many businesses still struggling and hoping for an extension.

Elsewhere, Cambodia’s textile and garment workers will have welcomed the agreed increase in minimum wage to US$200 per month from January 2023 following months of negotiations between trade unions, the government and garment factory owners.

However, Ky Sereyvath, a senior economist for the government-backed Royal Academy of Cambodia, claims that raising minimum wages would and are having an impact on the competitiveness of Cambodia’s garment industry.

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