Experts on Tuesday emphasised the need for a textile waste (jhut) management policy in Bangladesh, highlighting that the informal nature of the sector has contributed to political-economic tensions and labour unrest within the country’s readymade garment industry.

At an event titled ‘Switch to upstream circularity roundtable: path towards circularity in Bangladesh’s RMG industry’ at the Hotel InterContinental in Dhaka, they also said that an enabling policy framework was essential to drive the transition, as it could create millions of jobs in the recycling industry and reduce Bangladesh’s reliance on imports.

The event was organised under the SWITCH to Circular Economy Value Chains project, co-funded by the European Union and the Finland government.

It was led by UNIDO in collaboration with Bangladesh Garment Manufacturers and Exporters Association, Global Fashion Agenda, BESTSELLER, Reverse Resources, Chatham House, Circle Economy and the European Investment Bank.

‘The industrial textile waste market in Bangladesh remains largely informal, which has a significant political-economic impact on the sector, as seen during the recent labour unrests in the RMG sector at Ashula and the other parts of Dhaka,’ said Bernd Spanier, deputy head of the EU delegation to Bangladesh.

He said that formalising the sector was crucial, as a clear regulatory framework and enabling conditions would attract innovative recycling technologies and expertise.

The diplomat also said that the transition towards circularity could create millions of jobs in the recycling industry and reduce Bangladesh’s reliance on imports.

‘We believe that the next five years will be crucial for Bangladesh’s garment industry. Under the EU Strategy for Sustainable and Circular Textiles the EU is introducing significant initiatives in this region,’ he said.

Spanier said that garment-producing countries must transition from a linear to a circular production model to ensure that, by 2030 — which is not far away — textiles in the EU market are largely made of recycled fibres, free of harmful substances and produced in an environmentally and socially responsible manner.

Citing a recent GIZ study, he said that Bangladesh’s lack of supportive policies had contributed to shifting preferences towards countries like Vietnam and Indonesia as destinations for recycling industries.

‘We aim to retain the recycling industries in Bangladesh, but a post-industrial regulatory framework is essential, as current frameworks, such as the national environmental policy, solid waste management rules, and Bangladesh Labour Act, are not yet aligned with emerging EU and international standards for circularity in textile manufacturing and waste management,’ Spanier added.

Commerce ministry additional secretary Abdur Rahim Khan said that in Bangladesh, jhut business was not an economic issue now, but it turned into a law and order issue.

‘As you know, we face unrests within our RMG sector, and some of my colleagues suggest that jhut business is contributing to this instability,’ he said.

Rahim Khan emphasised the need to establish a policy for jhut waste management, saying that it would not only support the transition to circularity, but also help address the unrests currently affecting the RMG sector.

Now it is time for Bangladesh to have a proper coordination between three stakeholders — manufacturers, waste management companies and global brands.

If these stakeholders work together, transformation is likely to occur; otherwise, despite discussions and dialogues, real change may not take place, Rahim Khan observed.

Chief technical adviser on circular economy in global value chain from UNIDO Mark Draeck said that in the textile industry, especially regarding circularity, things were more complex, which was why progress had not been straightforward.

He highlighted two concrete pilot projects they are working on, closely collaborating with both brands and manufacturing companies to address challenges at the technology, logistics, economics and traceability levels.

However, to scale these initial experiences across the industry, more systemic challenges, including policy, capacity building, access to finance and the necessary investments for this shift must be addressed, Draeck observed.

BGMEA support committee member Rezwan Selim, Desh Group deputy managing director Vidiya Amrit Khan and global Fashon Agenda stakeholder consultant Shamiul Hoque, among others, spoke at the event.