What: Bangladesh's textile industry, producing 577,000 metric tons of factory waste annually, faces urgent pressure to expand recycling capabilities as global fashion shifts toward mandatory sustainability standards.

Why it is important: This challenge represents a critical turning point for the world's second-largest apparel producer, as failure to develop adequate recycling infrastructure could jeopardise its competitive position in an increasingly sustainability-focused global market.

Bangladesh's textile industry faces a significant sustainability challenge as it grapples with managing vast amounts of factory waste amid increasing global pressure for environmental responsibility. The country's current recycling infrastructure, largely informal and inefficient, processes only a small percentage of its 577,000 metric tons of annual textile waste, with most being exported or left to pollute the environment. The informal sector, employing predominantly women workers in challenging conditions, handles waste sorting and bundling with limited oversight and poor working conditions. While some companies like Recycle Raw and Broadway Regenerated Fiber are attempting to modernise operations and improve labor standards, the industry requires substantial investment in advanced technologies and infrastructure. The potential economic benefit is significant, with estimates suggesting local recycling could save Bangladesh approximately $700 million annually in imports, highlighting the urgent need for transformation in this crucial sector.

IADS Notes: Bangladesh's textile waste challenges reflect broader industry-wide transformations in sustainability and infrastructure development. As of February 2025, the EU's comprehensive regulations requiring retailers to fund textile waste management have created new urgency for manufacturing hubs to upgrade their recycling capabilities. This pressure intensified after January 2025's Kantamanto Market fire, which disrupted the processing of 15 million clothing items weekly, exposing vulnerabilities in global waste management systems. The industry is responding with significant investments, as evidenced by Technip Energies' $2 billion commitment to textile recycling and Circ's strategic partnership with Birla Group securing substantial recycled material commitments. However, the economic stakes are high, with BCG projecting $640 billion in additional US import costs, while up to 75% of fashion businesses risk non-compliance with sustainability requirements. These developments underscore the article's emphasis on Bangladesh's need to expand its recycling capacity to remain competitive in an increasingly sustainability-focused global market.

Bangladesh’s textile waste problem threatens fashion industry’s green future