Bangladesh has been missing out on a potential export business of recycled textile products worth $4-5 billion per year due to lack of comprehensive policy framework on circular textile, according to a report.
These policy frameworks would incentivize entrepreneurs to upgrade recycling of post-RMG Jhut, the study report also stated.
The study titled “Regulatory Framework to Enable Recycling of Post-Industrial Waste (Jhut) for the RMG Industry in Bangladesh” was jointly conducted by the Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and H&M under the program for Sustainability in the Textile and Leather Sector.
Bangladesh’s textile and ready-made garment (RMG) industry, a vital contributor to its economy, is currently facing significant environmental and social challenges due to the inefficient management of post-industrial textile waste, commonly referred to as Jhut.
The report also stated that this issue presents a complex web of environmental hazards, health risks, and human rights concerns, deeply rooted in the industry’s practices and supply chain management.
The annual production of an estimated 330,000 – 500,000 tonnes of pre-consumer textile waste, with a very limited recycling capacity, highlights a critical gap in sustainable industrial waste management and impediment to move towards a circular textile industry.
The disposal methods currently employed result in detrimental environmental impacts, including air pollution, resource depletion, and harmful chemical leaching, posing severe threats to ecosystems and public health.
In recent years, an in-depth exploration of Bangladesh’s textile and apparel industry waste management has brought the challenge of Jhut to the forefront.
Classified as post-industrial waste, Jhut encompasses fabric scraps, yarn, and additional residues emerging from production processes.
Bangladesh has an existing recycling capacity for apparel-grade recycled yarns ranging between 18,000 to 24,000 tonnes annually which represents only a modest 5-7% of the expansive 330,000-500,000 tonnes of 100% cotton and cotton-elastane waste produced every year.
Moreover, less than 5% of this waste is upcycled into products such as rag rugs, rag dolls, blankets, etc and a significant portion, over 55%, is exported to recycling companies globally, while the remaining waste is downcycled.
Usually, these are downcycled into stuffing materials for cushions and mattresses, incinerated onsite for waste-to-energy purposes, and a negligible amount is landfilled.
In Bangladesh, comprehensive data regarding Jhut waste remains incomplete.
While formal practices are tracked and documented, the extent of informal Jhut collection and management practices remains uncertain, and the pronounced disparity underscores the vast potential for enhancing Bangladesh’s textile recycling infrastructure.
The study outlined six key policy solutions for the informal textile Jhut sector in Bangladesh like to improve data availability, transparency and traceability through a national Jhut database.
Moreover, it also suggested introducing industry guidelines for Jhut management and recycling standards and to implement changes in existing VAT and tariff rules for Jhut transactions.
It also outlined economic incentives to formalize Jhut collection, handling and sorting and to establish a central depository system and cluster-based Jhut sorting hubs for decent work and social inclusion along with improving the investment environment for state-of-the-art recycling technologies.
There are some potential threats that could arise if factory owners set a strategy to implement Jhut recycling within their own premises which include influence or restrictions from political parties, general political pressures or influences, increased attention from various stakeholders, and sometimes factory owners beginning to reuse waste themselves.
The report also stated that in the global context, an evolving narrative around sustainability in the textile sector is shaping the operations and strategies of major brands.
A pronounced push towards integrating circularity in value chains is evident, with entities such as H&M and GIZ at the forefront of these initiatives.
Significantly, regulatory frameworks, particularly from bodies like the European Union, are edging towards stricter mandates and instating extended producer responsibilities.
This global shift offers Bangladesh a multifaceted opportunity, the report added, saying that on one hand, aligning with these international sustainability goals holds promise for elevated trade and partnership prospects.
On the other hand, the drive to formalize and institutionalize the informal Jhut sector could usher in a new era of circular economy models and formal employment opportunities in the country.
