Key stakeholders from government, industry, and the sustainability community gathered in Dhaka for a national consultation on the draft Bangladesh National Strategy on Circular Economy for the Textile and Ready-Made Garments (RMG) sector. The event was organized by UNIDO and Ministry of Commerce of Bangladesh, in collaboration with Chatham House, under the Switch to Circular Economy Value Chains (SWITCH2CE) project, co-funded by the European Union and the Government of Finland. SWITCH2CE project partner Chatham House worked with two leading national research organizations in Bangladesh to conduct two policy level research, and lessons from the pilot projects outlined future steps to foster a national circular textile strategy for Bangladesh.
As the world’s second-largest garment exporter, Bangladesh plays a critical role in the global textile value chain—and generates significant pre-consumer waste. This presents a major opportunity: by scaling recycling, strengthening partnerships, and adopting innovative business models, Bangladesh can position itself as a global leader in circular textiles.
Through SWITCH2CE, technical support has been provided by Chatham House and a diverse network of partners, including international brands, research institutions, and financing organizations, working alongside local industry actors and technology providers.
Key discussions and priorities The consultation focused on advancing Bangladesh’s transition to a circular textile economy, with discussions on innovative approaches to support recycling of pre-consumer waste, ethical sourcing, traceability technologies, and inclusive and innovative business models that a national circular strategy can create an enabling environment for.
Participants emphasized the need to embed circular practices across the entire value chain—from design and production to waste recycling—while improving transparency and building institutional capacity. Stakeholders emphasized policy recommendations to formalize and scale circular approaches across the entire value chain – from design and production to textile waste recycling – while improving traceability and building institutional and financial capacity. The Ministry of Commerce reaffirmed its commitment to finalising the National Circular Strategy for a climate-neutral, circular apparel industry.
Discussions also addressed challenges in blended fiber recycling, transparent supply chains, and the need for coordinated efforts to build a sustainable textile ecosystem by adopting a national circular strategy. The consultation underscored the importance of a unified national circular strategy to unlock opportunities and strengthen Bangladesh’s position as a sustainable manufacturing hub.
Presentations by Mark Draeck, SWITCH2CE Chief Technical Adviser at UNIDO, and Dr. Patrick Schröder, Senior Researcher at Chatham House offered valuable insights, emphasizing that the development of a national strategy circular could serve as a powerful tool for policymakers to support the industry’s transition toward sustainable circular models.
Abdur Rahim Khan, Secretary (in charge), Ministry of Commerce, stated “Bangladesh stands at a pivotal moment as we prepare for our graduation from Least Developed Country (LDC) status and respond to evolving expectations from key trade partners such as the European Union. In this context, 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. Through a comprehensive process, and by actively engaging with UNIDO and other stakeholders across both the public and private sectors, we are working to finalize a strategy that is inclusive, practical, and aligned with international standards. The Government is committed to finalize the strategy through stakeholders dialogues, validation and technical review within this year. We call upon industry leaders and private sector partners to act as frontrunners in the implementation of this strategy.
Hubert Blom, Attaché – Programme Manager, Climate Change-Green Inclusive Development, EU Delegation in Bangladesh, emphasized that circularity and the circular economy are a priority for Europe, both domestically and in its relations with trading partners. As the largest import market for Bangladesh’s garments sector, the European Union is eager to collaborate with Bangladesh in facilitating a circular transition—helping the sector better withstand competitive pressures in an increasingly volatile global landscape. To this end, the EU can provide knowledge-sharing, project support, and access to finance.
Dr. Patrick Schroeder from Chatham House emphasized “A national circular strategy for the textile and RMG industries will help Bangladesh stay globally competitive while promoting innovation, attracting investment, and supporting climate-neutral industrial growth. Building on SWITCH2CE insights and international best practice, Chatham House and UNIDO stand ready to support the Ministry of Commerce in finalising the draft strategy and advancing the national policy process to deliver a comprehensive circular textile strategy for 2026–2031.”
Mark Draeck from UNIDO, said, “Through SWITCH2CE, innovative technologies and approaches have been successfully piloted with leading brands such as BESTSELLER and H&M Group, alongside their manufacturing partners in Bangladesh, to drive circularity in the textile sector. To build on this momentum, a national circular economy strategy for the textile value chain is essential to maintain and increase the competitiveness of Bangladesh’s RMG sector. Such a framework would provide an important policy signal, instill confidence across the industry, and enable the scaling of investments in innovative technologies that are needed to accelerate the circular transition.”
Leading industry associations—including Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers (BKMA) and Exporters Association, and Bangladesh Textile Mills Association (BTMA) highlighted the sector’s unified commitment to circular transformation. They reinforced that advancing circularity is no longer optional but essential for sustaining global competitiveness and that a coordinated national strategy for circular textiles will enable manufacturers to invest in recycling technologies, improve resource efficiency, and meet evolving international market and regulatory expectations. Vidiya Amrit Khan, Vice-President of BGMEA, Mohammad Rashed, Vice-President of BKMEA, and Shafiqul Islam Sarkar, Vice-President of BTMA graced the event as industry leaders.
Representatives from the Ministry of Commerce, Alamgir Kabir, Deputy Secretary and Muhammed Badrul Haque, Joint Secretary, (planning cell), Ministry of Commerce provided welcome and closing remarks from the Government. Representatives from industries, EU suppliers, value chain actors and leading global brands expressed strong support for developing and implementing the strategy by end of 2026. Participants agreed that aligning with evolving international regulations and market expectations, particularly in the EU, will be essential to maintaining competitiveness.
