Today, producer responsibility systems are largely tied to the primary markets where products are first sold, while many post-consumer textiles move across borders, and their impacts are felt elsewhere. For example, according to the European Environment Agency, around 1.4 million metric tons of used textiles are exported from the EU annually, mainly to countries in Africa and Asia.

Over the next two years, ARC will build and test a producer responsibility blueprint that reflects the global nature of post-consumer textile flows, engaging brands, producer responsibility organisations, sorters, recyclers, policymakers and affected communities to help shape practical solutions.

ARC was launched at Kantamanto Market in Accra, Ghana, one of the world’s largest hubs for secondhand clothing reuse, repair, and upcycling. The Or Foundation estimates that the market recirculates 25 million garments each month while supporting the livelihoods of tens of thousands of workers and entrepreneurs. Given this scale, Kantamanto offers a valuable lens for understanding how post-consumer textiles are managed, as well as the growing environmental and social impacts associated with them, such as water and soil pollution.

As its first demonstration project, ARC will explore how producer responsibility contributions can help strengthen Ghana’s existing circular textile ecosystem. The Coalition recognises the work The Or Foundation has done over the past 15 years to support this ecosystem, and it aims to build on that experience while learning from the communities at the heart of the secondhand clothing trade. Through the demonstration project, The Or Foundation will continue to organise and implement initiatives across Accra, such as improvements to infrastructure at Kantamanto Market, environmental remediation, and training programmes.

As a second step, ARC intends to add at least one additional demonstration project in another recipient country. The coalition hopes the evidence and practical learnings generated through these demonstration projects will help inform brands, policymakers, producer responsibility organisations (PROs), and other stakeholders working to strengthen post-consumer textile management systems worldwide.

ARC operates through an independent foundation registered in the Netherlands, with Circle Economy taking the role of secretariat. From 2026 to 2027, adidas, BESTSELLER, H&M Group, and Inditex will make voluntary contributions to fund circular economy activities in secondhand markets. The coalition is designed to grow over time by engaging PROs and other stakeholders to collectively explore challenges and solutions across the post-consumer textile ecosystem.

The Coalition invites others to join the initiative and contribute to its impact and knowledge base.