The biomaterials and eco-friendly textile industries are expected to accelerate the expansion of free-trade agreement-based low-carbon supply chains in 2025-2026 due to mandatory RE100, CBAM, and ESG procurement . Korea is actively securing tariff benefits for bioplastics and circular fibers , as well as the cumulative use of textile and material origin through agreements such as the Korea-EU, RCEP, and CEPA . Key risks include the expansion of the EU CBAM , rising certification costs , and price competition with China and ASEAN .
Risk factors | 2025-2026 Outlook | Influence (1~5) | Implications |
|---|---|---|---|
| CBAM proliferation | Discussion on application to textile and chemical products | 5 | LCA and low-carbon certification are essential |
| RE100 expansion | Mandatory global brand supply chain | 4 | Renewable power and PPA application required |
| ESG Procurement Standards | Environmental Performance Labeling and Supply Chain Disclosure | 4 | ESG reporting becomes mandatory |
| China and ASEAN low-cost suppliers | Intensifying competition | 3 | Technology and Design Premium Strategy |
| Certification/Standards | Rising costs for EU Ecolabel and OEKO-TEX | 3 | Promoting mutual recognition of certification between governments |
FTAs offer substantial benefits for eco-friendly textiles and biomaterials, including country-of-origin accumulation, tariff elimination, and market access
. Korea-EU, CEPA, and RCEP include tariff reductions for recycled and low-carbon products and eco-friendly procurement provisions
. Textile companies are leveraging these agreements to diversify raw materials, reduce EU entry costs, and strengthen export strategies linked to RE100 certification .
field | FTA applicability | Major challenges | Management Points |
|---|---|---|---|
| Biofiber (HS5509) | Korea-EU-RCEP | CBAM response·LCA | Low-carbon certification and EPR response |
| Recycled polyester (HS5402) | RCEP·CEPA | Quality and environmental standards | GRS·OEKO-TEX certification |
| Bioplastic (HS3920) | CEPA·Korea-EU | Certification/standard mismatch | EU Ecolabel in parallel |
| Eco-friendly yarn and dye | RCEP·CEPA | Insufficient environmental data | Establishment of LCA and carbon accounting |
Environmental certification and procurement standards vary across major exporting countries, and
eliminating non-tariff barriers through FTAs is key to maintaining competitiveness.
The EU is strengthening its CBAM and Ecolabel, the US is implementing ESG reporting, and the UAE is strengthening its eco-friendly procurement regulations based on the CEPA.
market | Main items | MFN (basic rate) | When FTA is applied | non-tariff barriers | Comments |
|---|---|---|---|---|---|
| EU | Recycled fibers and bioplastics | 4~8% | 0% | CBAM·Ecolabel | Environmental and certification cost management is essential |
| USA | functional fibers | 3~7% | FTA low rate | ESG Reporting | Expanding ESG impact beyond CBAM |
| UAE | Biofibers and eco-friendly clothing | 5~10% | Phase-out through CEPA | Green Procurement Regulations | Visualizing the effectiveness of CEPA |
| japan | Textile materials and films | 2~6% | RCEP application | Energy efficiency standards | Expand joint development of yarn |
| ASEAN | Dyeing and processing fibers | 5~12% | RCEP cumulative utilization | Technical standard deviation | Utilizing low-cost production bases |
Global brands (Nike, H&M, Adidas, etc.) plan to apply RE100 and ESG procurement obligations across their supply chains by 2026 , and
the EU CBAM is discussing expanding it to textiles, plastics, and leather .
System/Issue | Core requirements | Influence (1~5) | react |
|---|---|---|---|
| CBAM | Submission of low-carbon yarn and process data | 5 | LCA·Emissions Data Construction |
| RE100 | 100% renewable energy use | 4 | PPA·ESS linked operation |
| ESG procurement | Supply Chain Transparency and Disclosure of Working Conditions | 4 | Establishing an ESG reporting system |
| circular economy | Recycled material usage rate | 3 | Expansion of GRS and RCS certification |
| Environmental certification | OEKO-TEX Ecolabel | 3 | Integrated Management of International Certification |
Korea: Center for textile and bioplastics R&D clusters (Daegu, Changwon, and Ulsan areas).
EU: Strengthening CBAM and ESG regulations to expand imports of high-quality, eco-friendly materials.
UAE: Expanding procurement of Korean textile materials based on CEPA.
ASEAN: Maintaining low-cost production bases, increasing demand for Korean yarn and technology.
US: Expanding supply chains based on ESG certifications.
Combining news sentiment (α), ESG policy strength (β), and textile industry sentiment (λ),
the biomaterials and eco-friendly textile industries are expected to maintain a moderate upward trend in the fourth quarter of 2025, driven by the EU and CEPA effects .
variable | Δ(%) or exponent | analysis |
|---|---|---|
| ΔExport_now | +3.3 | Increase in exports of biofibers and recycled products |
| ΔImport_now | +1.9 | Increase in imports of raw materials and equipment |
| ΔPrice_now | +0.4 | Reflection of CBAM response costs |
| ΔSignal_now | +0.042 | Positive momentum in ESG and RE100 news |
| ΔFTAEffect | +0.39 | Reflecting the effects of CEPA and RCEP |
| Forecast_3M | +0.66 | 3 months of gradual upward trend |
Formula (summary): Forecast_3M = 0.5·ΔSignal + 0.3·ΔFTAEffect + 0.2·ΔPrice
field | Suggestion | Executor | Expected effect |
|---|---|---|---|
| CBAM response | Establishment of a fiber and plastic LCA database | Ministry of Environment and Ministry of Trade, Industry and Energy | Strengthening EU market responsiveness |
| RE100·ESG | Expanding PPA and RE100 incentives | Ministry of Trade, Industry and Energy·KETI | Building an eco-friendly supply chain |
| Certification Harmonization | Promoting mutual recognition of Ecolabel and OEKO-TEX | Trade Headquarters·KOTRA | Reduce certification costs |
| Materials technology | Tax support for biomaterial R&D | Ministry of Strategy and Finance and Ministry of Trade, Industry and Energy | Strengthening technological independence and competitiveness |
| circular economy | Establishment of new standards for procurement of recycled fibers | Ministry of Environment and Public Procurement Service | Easy entry into the ESG procurement market |
The FTA will lead to the elimination of non-tariff barriers to trade in eco-friendly materials and circular fibers and the enhancement of ESG competitiveness .
Forecast_3M: +0.66 — Reflecting the effects of CEPA and RCEP and demand for RE100 and CBAM.
Recommended strategies: ① Cumulative use of CEPA and RCEP ② RE100-based production ③ ESG certification integration ④ CBAM response data construction.
