Fast Fashion in Israel: The Environmental and Social Challenge Ignored by Government Policy

The Climate Crisis in Our Wardrobe

While oil and chemicals are often blamed for pollution, the fashion industry is a major global polluter, responsible for 8% to 10% of global greenhouse gas emissions. Each year, it releases 500,000 tons of microplastics and generates 61 million tons of textile waste.

A garment's impact is measured through Life-cycle Analysis (LCA), covering everything from raw material growth to disposal. The Fast Fashion model, built on cheap production and rapid turnover, fails to reflect its true "externalities." The environmental damage and labor rights violations are not included in the consumer price, but are instead shifted to producing nations and the Global South.

Global Trends vs. Israeli Policy

Many nations, particularly in the EU, are shifting toward sustainability through three main channels:

1. Extended Producer Responsibility (EPR): Making producers responsible for a product's entire life cycle, including waste.

2. Import Tariffs: Using taxes to protect local industry and reduce carbon footprints.

3. Local Production: Reducing reliance on global supply chains to cut transport emissions.

   
   

In contrast, Israeli policy encourages fast fashion. This reflects a failure to integrate ESG principles into public strategy, prioritizing short-term costs over long-term responsibility. Since the 1990s, Israel has systematically lowered garment tariffs from 33% to nearly 0%. Most recently, the 2026 budget increased the VAT exemption threshold for personal imports to $150, further incentivizing mass consumption of cheap imports.

The Collapse of Local Industry

Between 1990 and 2017, employment in Israel's fashion industry plummeted by 82%. This crisis was driven by:

• E-commerce giants: Platforms like Shein and AliExpress promoting near-compulsive consumption.

• COVID-19: The shift from local physical stores to global online shopping.

• The "Iron Swords" War: Disruptions to supply chains and the workforce, leading to further business closures.

While the Ministry of Economy proposed a recovery plan in 2018, it lacked significant environmental components or EPR mechanisms, proving to be "too little, too late."

Civil Society and the Path to Reform

With the government lagging behind, civil society groups like "Mitlabshot" (Fair Fashion Israel) and Greenpeace are leading the way. They advocate for sustainable legislation and recently succeeded in canceling double taxation on second-hand clothing. However, systemic change requires a regulatory overhaul.

Policy Recommendations for Reform

1. Tax and Tariff Reform: Gradually raise import tariffs to 20-25% and provide tax incentives for sustainable brands and repair services.

2. EPR Legislation: Enact Extended Producer Responsibility laws that hold importers accountable for waste and prohibit the destruction of unsold stock.

3. Support for Local Industry: Establish a government fund to support local designers, sustainable R&D, and create a "Sustainable Israeli Fashion" certification.

4. The Circular Economy: Mandate space for second-hand stores in malls at reduced rents and support community-based recycling platforms.

5. Environmental Regulation: Strictly limit imports containing hazardous chemicals (following the EU REACH standards) and restrict aggressive fast-fashion advertising.

Conclusion: Rhetoric vs. Reality

The Israeli case highlights the gap between sustainability declarations and actual policy. While the developed world tightens regulations to fight fast fashion, Israel is moving in the opposite direction. Without integrating ESG considerations into the heart of government strategy, the environmental and social costs will continue to rise.

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Dr. Zohar Barnett-Itzhaki, Head of the Environmental and Social Sustainability Research Group, Ruppin Academic Center.