Efficient garment waste management embodies the saying ‘One person’s trash is another person’s treasure’. In fact, if managed wisely, garment waste could bring in US $ 6 billion every year.
Experts believe that Bangladesh has the potential to export garment items worth US $ 6 billion annually by locally processing 400,000 tonnes of recycled yarn and fabrics produced by garment makers every year. According to reports, just 5 per cent of local garment waste, referred to as jhoot in local parlance, are currently recycled within the country, while over 35 per cent are either incinerated or sent to landfills. The remaining 60 per cent are exported to countries like India, Hong Kong, Sweden and others, where advanced recycling technologies turn them into finer yarn. The recycled yarn is then sold back to the domestic ready-made garment (RMG) industry.
The renewed push for recycling textile waste aligns with new regulations imposed by key export destinations, notably the European Union (EU) market, which imported US $ 22.89 billion worth of apparel from Bangladesh in 2022. The EU’s Due Diligence Act mandates global apparel brands to prioritise using recycled yarn and fabrics for products destined for its markets.
Swedish retail giant H&M, the largest foreign clothing buyer in Bangladesh, plans to comply with such regulations by ensuring 100 per cent of its materials are either recycled or sustainably sourced by 2030, with a significant 30 per cent of materials being recycled by 2025.
“In our current economy, we take materials from Earth, make products from them and eventually throw them away as waste – the process is linear. In a circular economy, by contrast, we stop waste being produced in the first place,” stated H&M, which sources about US $ 5 billion worth of garment items from Bangladesh every year.
The Regional Country Manager of H&M, Ziaur Rahman, claimed that his company directly procures apparel from 200 factories and pays the fair price for buying RMG made from recycled yarn and fabric. He further clarified that only fibres sourced from sustainably cultivated cotton are used in the garments.
A report from the Centre for Policy Dialogue (CPD) shed light on Bangladesh’s garment waste management. It disclosed that fabric and garment factories discard between 25 per cent to 47 per cent of resources despite efforts to enhance efficiency. It said that waste is inevitable during various production stages, including design cutting, stitching, and dyeing, contributing to significant environmental impact.
In Bangladesh, some waste fabric finds use in local low-end garments, furniture and mattresses, though its value remains low. Even though leftover materials don’t sell for much, factories often work with small margins. Selling these leftovers still makes a big difference. Also, recycling these leftovers is environmentally friendly and recycled yarn is 15 per cent -30 per cent cheaper than new yarn made from cotton, according to CPD’s report. Despite this potential, the market for recycled materials remains largely untapped in Bangladesh.
Tax waivers on mills producing recycled fibre and yarn
Speaking during a recent dialogue organised under the Switch to Circular Economy Value Chains project in Dhaka, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Faruque Hassan, urged for the removal of 7.5 per cent and 15 per cent VAT on local mills producing recycled fibre and yarn, as well as the duty on imported cotton waste, clips and mutilated garments, to guarantee a steady supply of raw materials for mills engaged in recycled fibre production.
Faruque averred, “In a race to zero emission and resource decoupling, circularity emerges as the ‘next normal’ linking business and sustainable development. For BGMEA, circularity sits at the core of our values, mission and vision. Our goal is to help conserve the natural ecosystem as much as possible via an economic shift from a linear to circular system while generating greater social and economic values.”
He added, “We’ve unveiled a fresh corporate logo featuring nine key commitments, with ‘Circularity’ at its core.”
Shahidullah Azim, Vice President of BGMEA, sought financial support from banks, highlighting the possibility of earning US $ 6-7 billion through exports of garments made from recycled yarn and fabric.
Alexander Granberg, Senior Project Specialist at BESTSELLER, stated, “At this moment, everybody understands the need for new business practices to transition to a circular economy. Bangladesh, a key sourcing country for BESTSELLER, is an obvious starting point for creating systemic changes in waste segregation. Through our close relations, we recognise the importance of uniting key stakeholders to find viable solutions beneficial for the industry. This substantial project ensures our partners stay motivated throughout this transition.”
However, the transformation to a circular economy requires collective efforts beyond the capabilities of any individual agent or company. “True circularity can only be realised through proactive measures in manufacturing regions and Bangladesh is poised to be the global leader in recycled materials, provided it effectively harnesses the potential of post-industrial waste. With increasing momentum in brand demand and legislation materialising globally, I am confident that Bangladesh can create an ecosystem to expedite this opportunity,” stressed Federica Marchionni, CEO, Global Fashion Agenda.
Highlighting the economic growth potential in boosting domestic recycling capacity, Nin Castle, Chief Program Officer and Co-founder of Reverse Resources, opined, “This expansion will also enable the fulfilment of the growing demand for recycled products, reduce dependence on fibre imports and achieve environmental targets.”
Expressing his confidence in the circular transition, Senior Secretary from the Ministry of Commerce, Tapan Kanti Ghosh, said, “Circularity in the garment sector will enhance our export along with the branding image of Bangladesh.”
Representing the EU Delegation to Bangladesh, Bernd Spanier, Chargé d’Affaires, highlighted, “Bangladesh is now a world leader in green factories – there is no reason why it could not become a world leader in circularity too.”
Moreover, producing garments from recycled yarn can enhance Bangladesh’s eligibility for the Generalised System of Preferences (GSP) Plus trade benefits from the EU. GSP Plus status enables developing countries to enjoy zero import duties on over two-thirds of their export tariff lines. To qualify, these nations must adhere to 27 international conventions, covering areas such as human rights, labour rights, environmental standards and good governance.
Garment industry embraces recycled materials
Local garment suppliers are shifting gears towards sustainable fashion, utilising recycled materials in their apparel. This transformative shift not only aligns with international standards but also presents an opportunity for Bangladesh to enhance the sustainability of its garment industry significantly.
Bangladesh is positioning itself as a significant producer of recycled yarn and fabrics derived from plastic bottles, aiming to expand its market presence in high-value garment items like activewear, outerwear, padding and quilting. Seven local mills have already invested a total of BDT 1,670.73 crore to establish plants, converting waste plastic bottles into flakes and subsequently recycled yarn and fabrics, according to the Bangladesh Textile Mills Association (BTMA). Debonair Group, a 100 per cent export-oriented private company integrated in high-value outwear and homeware products, collects 30 to 40 tonnes of plastic bottles daily from vendors. They process these bottles into chips, then fibres, yarn and finally, garment materials.
While other manufacturers like DBL Group, amongst the largest manufacturers and exporters of knit garments in Bangladesh, have implemented various measures to reduce cotton consumption and are opting for recycled textile materials instead. It says that for embellished items like Cotton Neppy Mélange yarns, up to 30 per cent recycled materials can be blended with virgin fibre. The body of the yarn is made up of visible coloured neps (made from recycled polyester), which serve as decoration for the fabric’s surface. Additionally, snow yarns are produced using spinning waste.
As part of a project with H&M, DBL Group, with an annual turnover of US $ 780 million for the year 2020-21, generated yarns from recycled pet bottles for polyester. About 20 per cent of the 164,171 pieces of cotton-polyester-terry items were produced from recycled polyester. Moreover, recycled polyester blended yarn are created under the Global Recycled Standard (GRS) certification to make a variety of sustainable goods.
In February of this year, Ha-Meem Spinning Mills inaugurated its recycling plant in Gazipur. Equipped with machinery imported from Spain, the mill currently produces 16 tonnes of recycled cotton daily. The second phase, which aims for an additional 16 tonnes of production, is already underway. K. Azad, Managing Director of Ha-Meem Group, which employs around 50,000 workers and is equipped with 26 garment factories, said that consumers are now encouraging clothing production through recycling. He talked about plans to produce cotton, yarn and ready-made garments by recycling jute cloth and cotton waste as well as abandoned plastic bottles.
“True circularity can only be realised through proactive measures in manufacturing regions and Bangladesh is poised to be the global leader in recycled materials, provided it effectively harnesses the potential of post-industrial waste. I am confident that Bangladesh can create an ecosystem to expedite this opportunity” – Federica Marchionni, CEO, Global Fashion Agenda
Not just manufacturers, but brands are also actively incorporating recycled fabrics.
Earlier this year, Re/DRESS, a socially conscious fashion brand, made its debut in Dhaka. Its unisex collection, crafted from soft, breathable woven and knit textiles, is entirely recycled and sourced from plastic bottles and cotton waste within Bangladesh.
Collaborating with local recycling and garment factories, the brand creates innovative textiles, emphasising simple designs, neutral colours and comfortable fit that remain stylish and versatile, suitable for both casualwear and dressier occasions, particularly ideal for the warm Dhaka summer.
The BTMA is repeatedly pressing authorities to stop exporting garment waste to safeguard resources for local recyclers. However, recyclers mainly handle pure cotton waste and lack the expertise to process complex fibre blends, non-woven items and other tricky waste types. Some contend that an instant ban on textile waste exports could lead to large quantities ending up in landfills. For the time being, sending waste to countries with advanced processing capabilities might be a more viable solution until the country strengthens its recycling capacities.