A new blockchain-based system designed to track textile products from raw materials to finished goods has been launched, marking a major step toward compliance with upcoming European Union sustainability regulations.
China’s National Advanced Functional Fiber Innovation Center (NAFFIC) and Dutch traceability platform AWARE™ unveiled what they describe as the world’s first China–Europe Digital Product Passport (DPP) for textiles, enabling full supply chain transparency through a single scannable QR code.
The initiative, announced at an industry summit in Suzhou, provides verified data on a product’s origin, manufacturing journey and environmental footprint is a key requirement under the EU’s Ecodesign for Sustainable Products Regulation (ESPR), which will make digital product passports mandatory for textiles from 2027.
The system tracks a complete recycled polyester supply chain, beginning with post-consumer plastic bottles collected in China and following their transformation into yarn, fabric, and finished garments for European markets. Each stage is recorded on a public blockchain, making the data accessible to brands, regulators, and consumers.
“This is not just a European regulation. It is a transformation of global supply chains,” said Feico van der Veen, founder of AWARE™, highlighting the growing importance of verifiable production data.
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The platform combines NAFFIC’s Sustainable Textiles Credible Platform (STCP), which verifies raw material sources, with AWARE™’s blockchain-based system that records each production step and generates digital transaction certificates.
By the time a product reaches the market, it carries a complete digital record covering materials, manufacturers, compliance documentation and carbon footprint calculations.
Industry observers say the system could shift the balance of power in global supply chains, placing manufacturers, particularly in China, at the centre of compliance efforts.
Traditionally, brands have controlled supply chain verification through audits and certifications. However, under the new model, producers generate and own the data required for regulatory compliance.
“Brands do not have this data. Factories do,” the companies said, emphasising the role of manufacturers in meeting new transparency standards.
The launch comes as the European Union moves to enforce stricter sustainability requirements across the textile sector, with digital product passports expected to become mandatory within the next two years.
The DPP framework is designed to provide traceable proof of environmental and social impact, covering everything from raw material sourcing to production processes and logistics.
For suppliers, early adoption could offer a competitive advantage. Producers that build digital traceability systems now are likely to be preferred partners for European brands seeking to comply with regulations.
The platform also introduces a cost-efficient alternative to traditional certification systems. Blockchain-issued transaction certificates are generated automatically, reducing administrative costs and eliminating delays associated with third-party verification.
The initiative reflects a broader shift towards data-driven transparency in global supply chains, as regulators and consumers demand greater accountability from fashion brands.
China, which accounts for a significant share of global synthetic fibre production, is positioning itself at the forefront of this transition by integrating traceability technologies into its manufacturing base.
Additional developments announced at the summit included new carbon certification initiatives and digital infrastructure platforms aimed at scaling product-level emissions tracking across the textile industry.
Analysts say such systems will play a critical role in enabling the industry to meet decarbonisation targets and align with evolving regulatory frameworks.
As global apparel supply chains become increasingly regulated, the ability to provide verified, real-time data is expected to become a key differentiator, reshaping how products are sourced, manufactured and sold across international markets.
