Bangladesh is poised to redefine its role in the global fashion industry by transitioning from a traditional high-volume production hub to a pioneering centre for circular textiles.
This transformation is anchored in the draft Bangladesh National Strategy on Circular Economy for the Textile and Ready-Made Garments (RMG) sector, a landmark policy framework designed to institutionalise sustainability, turn industrial waste into high-value resources, and secure the nation’s export future in a climate-neutral world.
On 23 April 2026, a high-level national consultation in the capital brought together government officials, industry titans, and international experts to refine this strategy, which aims to provide a unified roadmap for the industry’s evolution through 2031.
The event was organised by the United Nations Industrial Development Organization (UNIDO) and the Ministry of Commerce of Bangladesh, in partnership with Chatham House.
This initiative falls under the Switch to Circular Economy Value Chains (SWITCH2CE) project, which is co-funded by the European Union and the Government of Finland.
By integrating policy-level research with practical lessons from ongoing pilot projects, the consultation marked a decisive step towards a sustainable manufacturing ecosystem.
A strategic opportunity for global leadership
As the world’s second-largest garment exporter, Bangladesh holds a critical position in the global textile value chain.
However, this massive production scale also results in the generation of significant volumes of pre-consumer waste.
The draft strategy views this waste not as a burden, but as a significant economic opportunity.
By scaling up recycling infrastructure, strengthening international and local partnerships, and adopting innovative business models, Bangladesh can position itself as a global leader in circular textiles.
Technical support for this transition is being provided through the SWITCH2CE project by Chatham House and a network of partners, including international brands, research institutions, and financing organisations.
These global entities are working alongside local industry actors and technology providers to ensure the strategy is both ambitious and achievable.
Safeguarding competitiveness post-LDC graduation
The drive for a circular strategy is particularly urgent as Bangladesh prepares for a major economic milestone.
Abdur Rahim Khan, Secretary (in charge) of the Ministry of Commerce, noted that the country stands at a “pivotal moment” as it nears graduation from Least Developed Country (LDC) status.
This shift, coupled with evolving expectations from key trade partners like the European Union, makes the adoption of a robust national strategy essential to safeguarding the sector’s competitiveness.
“Developing and adopting a robust national strategy on circular textiles is not only timely, but essential to safeguarding our competitiveness and ensuring sustainable growth of our textile and garment sector,” Rahim stated.
He reaffirmed the Government’s commitment to finalising the strategy by the end of 2026 through a rigorous process of stakeholder dialogues, validation, and technical reviews.
He further urged industry leaders and private sector partners to act as frontrunners in the implementation phase.
Aligning with European and global standards
The European Union, currently the largest import market for Bangladeshi garments, has identified circularity as a core priority for its domestic policy and its relations with trading partners.
Hubert Blom, Attaché and Programme Manager for Climate Change-Green Inclusive Development at the EU Delegation in Bangladesh, emphasised that the EU is eager to collaborate with Bangladesh to facilitate this circular transition. This collaboration is intended to help the RMG sector withstand competitive pressures in an increasingly volatile global landscape.
To support this, the EU is prepared to offer knowledge-sharing, project support, and access to finance. Dr Patrick Schröder, a senior researcher at Chatham House, added that a national strategy would promote innovation, attract investment, and support climate-neutral industrial growth.
He confirmed that Chatham House and UNIDO are prepared to support the Ministry of Commerce in advancing the policy process to deliver a comprehensive strategy for the 2026–2031 period.
Scaling technology and innovative business models
Practical successes already achieved under the SWITCH2CE project provided a foundation for the strategy discussions.
Mark Draeck, the SWITCH2CE Chief Technical Adviser at UNIDO, highlighted that innovative technologies and circular approaches have been successfully piloted with leading global brands such as BESTSELLER and H&M Group, alongside their manufacturing partners in Bangladesh.
Draeck argued that a formal national strategy is essential to build on this momentum. Such a framework would provide a clear policy signal and instill confidence across the industry, enabling the scaling of investments in the technologies required to accelerate the circular transition.
This includes addressing technical challenges such as blended fibre recycling and the implementation of traceability technologies.
Unified industry commitment
The consultation saw a unified front from the nation’s primary industry associations: the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the Bangladesh Textile Mills Association (BTMA).
These associations reinforced that advancing circularity is no longer an optional endeavour but a necessity for sustaining global competitiveness.
Industry leaders, including Vidiya Amrit Khan (vice-president of BGMEA), Mohammad Rashed (vice-president of BKMEA), and Shafiqul Islam Sarkar (vice-president of BTMA), argued that a coordinated national strategy would empower manufacturers to invest in recycling technologies and improve resource efficiency.
They noted that such a framework is vital for meeting the evolving regulatory expectations of international markets.
Building a sustainable ecosystem
The strategy prioritises the embedding of circular practices across the entire value chain –from initial design and production to the final recycling of textile waste. Stakeholders emphasised the need for policy recommendations that formalise these approaches while improving transparency and building institutional and financial capacity.
Discussions also focused on creating an enabling environment for ethical sourcing and inclusive business models.
Participants agreed that a unified national strategy is the key to unlocking these opportunities and strengthening Bangladesh’s position as a sustainable manufacturing hub.
Implementation and outlook
The event concluded with remarks from Ministry of Commerce representatives Alamgir Kabir (Deputy Secretary) and Muhammed Badrul Haque (Joint Secretary, Planning Cell).
Value chain actors, EU suppliers, and leading global brands expressed strong support for the strategy’s implementation by the end of 2026.
The SWITCH2CE project, led by UNIDO in collaboration with Chatham House, Circle Economy, and the European Investment Bank (EIB), will continue to support the transition under the strategic leadership of the Ministry of Commerce.
Aligning with international regulations and market expectations remains the central priority to ensure the long-term resilience of Bangladesh’s textile industry.
