Circular textiles will only scale when the system functions as a viable and predictable market and is supported through targeted measures until it becomes commercially competitive. Demand for recycled materials is rising due to upcoming mandatory ecodesign requirements. It requires fixing the fundamentals of how the system works:First, circular textiles must operate within a viable and predictable market environment. They are the missing piece that determines whether the system the EU intends to build for circular textiles succeeds or fails. Without these changes, recycled materials will continue to struggle to compete, and Europe’s circular ambitions will remain out of reach.