Europe faces a significant textile waste problem. Every year, between 7 and 7.5 million tons of textile waste are generated, with millions of tons of potential resources discarded in landfills and incineration. Today, only about 30 to 35 per cent of this waste is collected separately, and less than 1 per cent is recycled into new clothing. The textile consumption in Europe alone is responsible for the use of 676 million tonnes of primary raw materials, including natural fibres, fossil fuels, and chemicals. It also consumes 53 billion m3 of water, 360,000 km2 of land, and emits 335 million tonnes of CO2eq. PESCO-UP aims to transform the textile industry into a circular one. The goal is to create new raw materials and products from mixed cotton-polyester wastes, addressing the circularity across the textile recycling value chain. By reducing the industry's dependency on virgin materials, PESCO-UP aims to decrease the textile industry's emissions significantly. By developing viable processes for recycling mixed cotton-polyester textiles into high-quality secondary fibres and enabling tools such as a Digital Material Passport (DMP), PESCO-UP provides concrete proof of how circular textiles can reduce Europe’s reliance on virgin resources and limit the socio-ecological impacts of the textiles sector. These actions are paving the way for a viable and economically sustainable textile recycling industry in Europe. The effect of PESCO-UP is expected to be profound. It is estimated that approximately 20 green jobs could be created for every 1,000 tons of textiles collected, sorted, and recycled, ultimately resulting in up to 120,000 jobs in the European Union. Additionally, the working conditions in the textile sector will be improved through safer processing conditions and the use of AI-based digital solutions in textile sorting.