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The European textile sector continues to operate on largely linear production models, with around 73 % of post-consumer textiles in the EU incinerated or landfilled. Transitioning to a system of durable, reusable, repairable, and recyclable textiles is therefore essential to reducing waste, emissions, and virgin resource dependency. This transition relies on high-quality product and material data. Traceability enables the tracking of fibres, processes, and actors across the supply chain, while transparency ensures that information is accessible to the relevant stakeholders. Reliable data underpin circular business models, support verification of environmental claims, and improve sorting, reuse, and recycling efficiency.

This PESCO-UP policy brief aims to contribute timely evidence to the ongoing debate on traceability and transparency in the textiles sector. This comes at a critical moment when the Delegated Act for Textiles under the Ecodesign for Sustainable Products Regulation (ESPR) is still under preparation. Once adopted, it will define compulsory data to be collected and shared, governance rules, and implementation timelines for the Digital Product Passport (DPP) in the textiles sector. As such, it is essential that the requirements reflect real needs and capacities of actors involved in textile sorting and recycling, while also taking potential challenges for these and other actors in the supply chain (including brands, software providers, manufacturers etc.) into account. Ensuring that the DPP is practical, relevant, and scalable will be crucial to unlocking circular business models in the sector and ultimately achieving the environmental and social outcomes the EU has set for the textile industry.

This policy brief was written in the context of the PESCO-UP project, funded by the European Union under grand agreement No. 101138367. This policy brief was first published on .

• EBRD provides US$ 20 million to Nika Pharm
• Company to increase its production capacity, achieve GMP certification
• Project will stimulate local production of medicines

The European Bank for Reconstruction and Development (EBRD) is promoting further growth in domestic production of pharmaceutical products in Uzbekistan by supporting the operations of leading local manufacturer Nika Pharm. 

Nika Pharm will use the EBRD loan of up to US$ 20 million to restructure its balance sheet and upgrade equipment and facilities in order to increase production capacity, improve product quality and bring the entire manufacturing process into compliance with the Good Manufacturing Practice (GMP) standards of the World Health Organisation’s certification scheme.

The company has been an EBRD client since 2021 and is a well-established producer of tablets, capsules, sachets and nasal sprays for use in the treatment of common colds, as well as in gastroenterology, paediatrics and urology. During this time, Nika Pharm has become a leader in several key segments, including decongestants, and has shown strong and sustainable growth by replacing imports with high-quality local production.

The project will help to expand Nika Pharm’s manufacturing base, improve its sustainability and efficiency, and lead to an average 140 per cent increase in the company’s production of generic pharmaceuticals and prescription drugs. Together with GMP certification, this will allow Nika Pharm to strengthen its position both domestically and regionally.

Uzbekistan’s rapidly growing pharmaceuticals market, which is set to expand by a further 10 per cent by 2029, is dominated (around 75 per cent) by imported medicines. The project will help contribute to the government’s plan of eventually bringing the share of locally produced pharmaceuticals to 80 per cent.

The EBRD has invested over US$ 6.6 billion in Uzbekistan to date through 196 projects, with the majority of those funds supporting private entrepreneurship, contributing to the country’s economic development.