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Built to Adapt: How the Western Balkan Textile Sector Is Preparing for What Comes Next
The textile industry is changing fast. European buyers increasingly expect suppliers to offer more than a good product at a competitive price. They also want clear information about where their garment comes from, how they are made, and their environmental and social impact. New European rules, such as the Ecodesign for Sustainable Products Regulation (ESPR), Extended Producer Responsibility (EPR),Green Claims Directive (which includes Life Cycle Assessment (LCA)),Digital Product Passports (DPP) and sustainability reporting, are raising the expectations for companies that want to export in Europe. For Value-added textile companies in the Western Balkans, the challenge is therefore not simply how to comply with new EU regulations, but how to remain relevant and competitive as European value chains evolve.
(Photo credit: iStock)
That is especially challenging for a traditional industry made up of largely SMEs. Sustainability requirements are evolving and becoming more demanding, while European buyers are under increasing pressure from consumers and regulators to understand where products come from and what happens to them after their lifecycle.
Therefore, it is becoming increasingly important for companies to know where they stand and what they need to improve.
From National BSOs to a regional alliance
Western Balkan SMEs risk falling behind and the scale and complexity of the EU regulatory changes make it difficult for companies to respond alone. They need access to knowledge, practical guidance and a way to understand how their own readiness compares with market expectations.
This creates a new role for the Business Support Organisations (BSOs): not only to raise awareness or deliver individual training, but to become “hubs” that connect companies with market knowledge, data, expertise and a broader network.
The Western Balkan Regional Network in Value-Added Textiles (VAT) is an important part of the systemic approach of BSOs capacity development. Building on regional activities supported by SIPPO in Skopje and Sarajevo in 2024, SIPPO supported the creation of a platform for BSOs to connect, exchange and explore opportunities for cooperation. This collaboration later led to the signing of a Memorandum of Understanding (MoU) and the formal establishment of the regional Western Balkan Regional BSO network. Today the network brings together six leading BSO’s from Albania, Bosnia and Herzegovina, North Macedonia, and Serbia in the VAT sector. BSOs can learn from one another, exchange information and experience, collaborate on new opportunities and improve services related to EU sustainability and eco-design requirements for export-ready companies.
Creating a bigger picture of what companies really need: “EcoDesign Readiness Assessment Tool” (ERAT)
SIPPO’s aim was to turn a multifaceted regulatory landscape into a practical advisory tool for companies. The primary objective of this initiative was to bridge the "compliance gap" between Western Balkan textile suppliers and EU regulatory expectations through the development of the “EcoDesign Readiness Assessment Tool” (ERAT). The ERAT is a structured self-assessment instrument developed by the Western Balkan BSOs with the support of SIPPO. It helps companies evaluate their readiness for EcoDesign requirements, traceability, data quality, ESG reporting, and circularity, identify gaps, and define improvements. As European textile value chains prepare for increasingly stringent sustainability requirements under the EU Ecodesign for Sustainable Products Regulation, ERAT provides a valuable tool for strengthening companies’ competitiveness and preparing them for future EU Market requirements.
At the same time, ERAT builds BSO capacity by giving them a practical method, guidance, pilot experience, and a reusable service model they can continue helping companies prepare for EU sustainability and EcoDesign requirements.
When companies use the tool, they generate valuable information about where they - stand and where they have opportunities to improve. BSO’s gain a clearer picture of the needs of the SMEs and the wider sector they represent. Now, the question is no longer only “What training should we offer?” but, “What does the data tell us about the company’s needs?”. By asking these questions, BSO’s can design more targeted services, identify sector-wide gaps and inform future interventions. Over time, findings can also create opportunities for benchmarking between countries and sharing solutions through the Balkan Textile Network. This also opens a broader opportunity for the region.
A company that understands its gaps in traceability, product information, Eco-design or sustainability performance can begin addressing them before they become a barrier to working with European buyers. At sector level, gathered insights can help BSOs identify common challenges and determine where collective support, knowledge exchange or new export promotion services are needed.
For BSOs, this means potentially moving from being mainly support providers to becoming “hubs” and bringing relevant companies and services together, and helping the sector communicate its progress to European Buyers.
The lasting value is not only the ERAT tool – it is the system around it.
What makes the approach durable?
In a nutshell: The Value Added Textile sector gains the ability to keep adapting by:
- At the SME level, ERAT tool helps businesses understand where they stand and and continuously assess and improve their readiness.
- At the BSO level, this is a real learning opportunity. With the generated Data and knowledge BSOs can help develop services based on company's and sector needs, while expanding their technical ability to advise SMEs in evolving EU requirements.
This makes the intervention not a one-time response to regulation, but a lasting system for keeping the Western Balkan textile sector relevant and competitive.
