Scenario 1: Green new Garments (GnG) Green new Garments (GnG)

Context

In this scenario, EFFICIENT forms of fashion consumption are created, actively promoted, and made the default choice as a result of government interventions, effectively implementing a reduction in the social and environmental impacts of the fashion system. States agree on a global treaty and regional regulations to eradicate modern slavery and externalization of environmental costs and national governments impose environmental and social regulations on the industry operating within national borders. Government regulations ensure transparency in fashion value chains and accountability of different stakeholders via use of mandatory participation in sustainability reporting (e.g., Environmental Sustainability Index), product certification systems (e.g., Cradle to Cra- dle) and labels (e.g., Global Organic Textile Standard). Many certifications and labeling schemes that were voluntary in 2020 have been adopted as mandatory and enforced carefully through governmental oversight. Clothing users follow the lead. The new circular fashion system strives towards higher levels of material and technological innovation, both production-oriented and consumer-facing, while maintaining fast-paced fashion consumption patterns. The goal of the system is to optimize production and recycling processes to reduce the fashion industry’s use of primary resources, including land, water, and fossil fuels. In line with the full circularity approach, material innovations reduce the carbon footprint and resource intensity of new garments entering the market.