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Bangladesh could earn more 5 billion USD from recycled waste of textiles

BTJ Desk Report
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Bangladesh could earn more 5 billion USD from recycled waste of textiles

Bangladesh is missing out on a potential $4-5 billion annual export market for recycled textile products due to the absence of a comprehensive policy framework for circular textiles, according to a report by the Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and H&M. The study, titled “Regulatory Framework to Enable Recycling of Post-Industrial Waste for the RMG Industry in Bangladesh,” highlights the challenges posed by inefficient management of post-industrial textile waste, known as Jhut.

Bangladesh’s textile and ready-made garment industry, crucial to its economy, produces an estimated 330,000 – 500,000 tonnes of pre-consumer textile waste annually, but only 5-7% is recycled into apparel-grade yarns. The rest is mostly down cycled or exported, leading to significant environmental hazards, including pollution and resource depletion.

The report emphasizes the need for policy interventions to enhance recycling capacity, improve data transparency, and incentivize formalization of ‘Jhut’ collection and management. By aligning with global sustainability trends and addressing these challenges, Bangladesh could unlock significant economic and environmental benefits, transitioning towards a circular textile economy while creating formal employment opportunities.

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