What: EPA's sweeping environmental deregulation threatens fashion industry's sustainability progress by weakening emissions, air quality, and water pollution standards while potentially discouraging innovation in cleaner production technologies.

Why it is important: This development highlights the growing tension between regional environmental policies, as the US moves toward deregulation while the EU strengthens sustainability requirements, creating complex challenges for global fashion supply chains.

The EPA's latest deregulatory initiatives under the Trump administration signal a significant shift in environmental oversight that could profoundly impact the fashion industry's sustainability efforts. The sweeping rollbacks across emissions, air quality, and water pollution regulations present fashion companies with a complex dilemma: potential short-term cost savings versus long-term environmental commitments. Industry experts, including Dr Sheng Lu from the University of Delaware, warn that these changes could stifle innovation in sustainable production technologies, particularly in areas like waterless dyeing and digital printing. The deregulation's scope extends to greenhouse gas reporting requirements and mercury standards, affecting textile mills and apparel factories that rely on coal-fired power. Rachel Van Metre Kibbe of Circular Services Group emphasizes that deregulation doesn't address fundamental sustainability challenges, while the American Apparel and Footwear Association raises concerns about the impact on companies already investing in environmental compliance.

IADS Notes: The EPA's deregulation contrasts sharply with global trends in retail sustainability regulation. In March 2025, the EU implemented comprehensive sustainability reporting requirements through CSRD, CSDDD, and ESPR, while February 2025 saw the introduction of mandatory textile waste management funding for retailers. The industry's vulnerability to regulatory changes was highlighted by the January 2025 Kantamanto Market fire, demonstrating the fragility of global waste management systems. This regulatory divergence occurs as October 2024 reports revealed the limitations of market-driven environmental initiatives, while May 2024 saw the introduction of significant legislative changes promoting sustainability across fashion supply chains.

How EPA deregulation could undermine fashion’s sustainability goals