DEES

Vermont’s Wake-Up Call

Vermont has faced the harsh consequences of climate change in recent years: record-breaking floods in the summer of 2023, extreme weather, and significant damage to agriculture and infrastructure. These events pushed the state to take a stand by passing the Climate Superfund Act, a groundbreaking law based on the “polluter pays” principle. It requires fossil fuel companies—based on their historical carbon emissions, to contribute billions of dollars toward a fund dedicated to local climate adaptation. It’s not a general tax, but a targeted financial tool, and it could inspire similar measures across the U.S. and maybe even in other sectors like fashion.

Image source: CNN USA

Fashion’s Dirty Secret

The fashion industry is responsible for around 4% of global greenhouse gas emissions, more than the combined output of France, Germany, and the UK. Most of the damage comes from fossil-fuel-based materials like polyester and a globalized supply chain powered by carbon-heavy transport.

Could Fashion Be Next?

There are signs that fashion may soon fall under the carbon tax radar. The EU is already considering extending its Carbon Border Adjustment Mechanism (CBAM) to textiles, which would increase costs for high-emission imports. France is also preparing to introduce an environmental label on clothing to help consumers make greener choices.

A Catalyst for Change?

If climate-focused fiscal policies become more widespread, brands will need to adapt. That could mean:

• Producing fewer items, with better quality.
• Relocating manufacturing closer to consumers.
• Investing in eco-friendly and recycled materials.

These shifts could also influence consumer behavior: less fast fashion, more second-hand, and conscious purchasing.

What’s happening in Vermont could mark the beginning of a new era. The notion of making industries pay for their climate impact is gaining ground—and fashion may be next. Rather than resisting, the sector could seize this chance to reinvent itself and align with the growing demand for sustainability.