Aims To audit the range of environmental problems facing SMEs in different sectors of the European textiles and clothing industry, and to evaluate their impact on competitiveness and survival. To identify best or innovative practice in helping SMEs to address environmental problems, both in terms of available technologies and of collective services and support offered by resource agencies. Methods In each participating locality a survey would be undertaken to assess the extent to which SMEs are facing difficulties in complying with environmental regulations, and the likely impact of those difficulties on long term survival. Company-based examples of cost-effective compliance would be sought and examined in depth. Interviews would also be conducted with regulatory bodies and technology transfer agencies to assess the scope for identifying and disseminating relevant technologies and methods. Outputs A guide would be published to assist SMEs in locating and evaluating cost effective methods for meeting environmental standards. Guidelines would also be produced to assist local resource centres and development agencies to develop collective solutions for SMEs.