As long as it remains cheaper to buy new rather than repair, the circular economy will never pick up steam. Northern Playground’s CEO Jo Egil Tobiassen makes the case for a simple incentive to help balance the scales: More Tax.

Why isn’t there a tax on consumption, where the tax money is used to strengthen the circular economy? Imagine an example where new boots become a fraction more expensive while the local shoemaker becomes a fraction cheaper. It’s so simple, and it could be introduced tomorrow with enough political will.

Estimates vary by country, but Europeans and North Americans buy between 40-60 items of clothing each year. In Norway, each person buys an average of about 70 items of clothing annually. A modest tax of EUR 1.50 per garment would therefore generate an environmental income of more than EUR 500 million, a sum that could be used to repair millions of items of clothing. This would be achieved by modestly taxing just one industry in Norway, and subsidizing another.

Few understand as well as those of us who actually work in the apparel industry why such a tax should be adopted today. We know that our production is harmful to the planet. Even though some of us may try our best to do the opposite, it continues to have negative impacts. The main problem is that the production volume has grown too high. This is part enabled by a society that supports fast-fashion’s business model that is increasingly moving towards single-use apparel. And even by outdoor brands who go out of their way to convince consumers to buy the latest color.

Brands and customers both need good incentives to keep products in use longer. At Northern Playground, we’ve already implemented a self-imposed EUR 1.50 per garment “environment tax” to fund our repair service that fixes outdoor apparel from any brand, free of charge. But we’re just one small brand among many, and need stronger measures across the industry to really make a difference.

The EU’s incoming Right to Repair legislation may be a step in the right direction, but it is not enough. The tax I’m calling for would make a great impact. But don’t be mistaken; it is a carrot, and not a stick, where thousands of local jobs in the circular economy would be created. That’s why in 2024 we’re calling on our elected officials in Norway to use taxes to help subsidize the transition to a circular economy.

Will you join us in asking your elected representatives to do the same?

Lead Photo: iStock