The EU’s Green Deal and transport regulations are driving climate neutrality, prioritizing sustainable fuels like second-generation biomass and synthetic carbon dioxide based alternatives in aviation and shipping. A report by the Renewable Carbon Initiative (RCI) highlights how these policies, while boosting demand for biofuels, could significantly impact other industries, including textiles and yarn production.

The competition for second-generation biomass is intensifying as aviation and shipping quotas absorb most of the available supply. This leaves limited renewable carbon resources for the textile industry, which increasingly relies on bio-based inputs for sustainable fiber production. With prices rising due to fuel sector demand, yarn manufacturers may face challenges in accessing affordable, renewable feedstocks essential for producing eco-friendly textiles.

However, the report identifies synergies. By-products like bio-based naphtha from Sustainable Aviation Fuel (SAF) production can serve as high-quality feedstock for chemicals, potentially benefiting fiber production. Additionally, redirecting food and feed crops toward industrial use could stabilize supply chains without compromising food security.

Innovative strategies, such as integrating electrification in transport with carbon recycling, could create a balanced approach, supporting the textile sector’s defossilization. Policies that encourage a cascading use of biomass and prioritize circularity are critical to aligning the textile industry’s goals with broader climate targets.

RCI urges policymakers to foster cross-sector collaboration and implement balanced policies to ensure sustainable resource allocation. For the textile industry, these measures are pivotal to achieving a resilient, low-carbon future while maintaining competitive global production.