The EU strategy for sustainable and circular textiles announced actions along the textiles value chain to increase circularity and sustainability. The European consumption of textiles has the fourth highest impact on climate change and the environment, after the food sector, housing and mobility. Conventional textiles production is one of the most resource intensive and polluting industries. Many textiles’ functionalities and properties can currently only be achieved through processing with chemistry that has been identified as hazardous or of potential concern. This includes, for instance, coatings such as PFAs, heavy-metal-rich dyes and fixing agents, solvents, and surfactants. Moreover, fossil-based polymers, e.g., PVC and PU, have widespread use in coated fabrics but they are under scrutiny for the potential adverse effects (due to their additives), and high health & safety impacts in their production phase, use, and end of life. Overall, adequate substitutes of hazardous substances need to be demonstrated and introduced into textile value chains, including considering any challenges in the case of potential remanufacturing and textiles-to-textiles recycling. There is a potential to demonstrate innovative bio-based chemicals and processes to substitute currently used hazardous chemicals.