It sounds like charities will be getting a lot of unsalable clothing to go through. Maybe they could charge businesses for taking it?

It seems rather similar to what Ross Clothing does.

The EU is definitely studying the donations / tax-credit economy across its states; I expect that working group will be paying very close attention to donation outcomes union-wide in the coming months.

Tax incentives for donations to social economy entities: Models, trends, and challenges (2025) https://social-economy-gateway.ec.europa.eu/document/downloa...