Bangladesh and the Netherlands have strengthened their cooperation on the circular economy through a new Memorandum of Understanding (MoU) aimed at accelerating sustainable transformation across Bangladesh’s textile and ready-made garment (RMG) industries.
The agreement is expected to promote more efficient use of raw materials, reduce textile waste, encourage recycling and support the adoption of cleaner and more resource-efficient production systems. It also creates a framework for greater cooperation in green technologies, innovation, investment and knowledge sharing across the textile value chain.
Khandakar Abdul Muktadir, Commerce Minister of Bangladesh, signed the MoU on behalf of Bangladesh, while Stientje van Veldhoven, Minister for Climate and Green Growth of the Netherlands, signed for the Dutch side.
The two ministers participated virtually in the signing ceremony. Md Ataur Rahman Khan, Secretary of the Ministry of Commerce; Bangladesh Ambassador to the Netherlands Faiyaz Murshid Kazi; and Joris van Bommel, Dutch Ambassador to Bangladesh, were among the officials present.
Circularity Becomes a Strategic Priority
The partnership comes as sustainability requirements are becoming increasingly important in international apparel trade. Global brands, buyers and investors are placing greater emphasis on resource efficiency, traceability, recycling, lower emissions and responsible manufacturing.
Muktadir said Bangladesh’s highly export-oriented textile and RMG supply chains are deeply connected to global markets, making international cooperation essential for the country’s transition toward more sustainable production.
He described the MoU as an important step toward developing a greener, more resilient and future-ready industrial economy. According to him, circular production can improve resource efficiency, attract sustainable investment, generate green employment and strengthen the long-term competitiveness of Bangladesh’s export industries.
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The minister also linked the circular transition with Bangladesh’s upcoming graduation from the Least Developed Country (LDC) category. As Bangladesh gradually loses some of the trade advantages associated with LDC status, improving productivity, efficiency and compliance with international sustainability requirements will become increasingly important.
Focus on Textile Waste, Recycling and Cleaner Production
The cooperation is expected to cover several areas across the textile value chain, including textile waste reduction, recycling, resource efficiency, circular product design, cleaner production and green industrialisation.
These areas are particularly significant for Bangladesh because the country generates a substantial volume of textile and garment waste every year.
A Dutch-supported circular textile project estimates that Bangladesh generates around 600,000 tonnes of textile and garment waste annually. Better collection, sorting, recycling and reuse systems could therefore turn a major environmental challenge into an economic opportunity.
The Netherlands has already been working with Bangladesh on circular textiles through trade missions, knowledge exchange and private-sector cooperation. Dutch initiatives have focused on areas such as post-production and post-consumer textile recycling, traceability, cleaner production, renewable energy and circular business models.
Opportunities for Technology and Investment
The MoU could also open new opportunities for Dutch companies, technology providers and investors to work with Bangladeshi manufacturers.
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Potential areas include advanced recycling technologies, textile-waste sorting, water-saving technologies, renewable energy, resource-efficient machinery, digital traceability and circular product development.
The Netherlands’ trade and development agencies have identified Bangladesh’s textile sector as an important market for circular-economy solutions. A Dutch government market study highlights opportunities in recycling, water and energy efficiency, sustainable production and financing of green technologies.
A separate Dutch-supported project launched in 2026 is also focused on advancing traceability and decarbonisation in Bangladesh’s textile sector, indicating that cooperation is moving beyond policy dialogue toward practical industrial solutions.
Building on Existing Circular Initiatives
The new MoU also builds on broader efforts already underway in Bangladesh. In May 2026, the Ministry of Commerce and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) jointly hosted a high-level seminar on accelerating circular transition through the SWITCH2CE pilot initiative.
The programme showcased pilot projects involving international brands and highlighted practical approaches to textile waste management and circular production. Discussions also focused on policy development, technology-driven innovation, investment readiness and the development of a national circular economy strategy for Bangladesh’s textile sector.
This growing ecosystem of government programmes, international partnerships and private-sector initiatives could help Bangladesh move from traditional linear production—based on taking resources, making products and generating waste—toward a more circular model in which materials remain in productive use for longer.
Netherlands Seeks Faster, Measurable Action
Van Veldhoven stressed that no country can complete the circular transition independently. She called for stronger international cooperation, commercial partnerships and coordinated action throughout global supply chains.
She said Bangladesh and the Netherlands have already identified priority areas for cooperation and that these discussions now need to translate quickly into concrete actions and measurable results.
The Dutch government has previously described circular textiles as a strategic area for international collaboration with Bangladesh, including cooperation on circular design, recycled materials, innovation, technology and trade missions.
What the Partnership Could Mean for Bangladesh
For Bangladesh’s textile and RMG sector, the partnership could have implications beyond environmental performance. Greater circularity could help manufacturers reduce material and energy costs, create new revenue streams from textile waste, improve compliance with international buyer requirements and attract investment in green manufacturing.
Dutch research has estimated that shifting Bangladesh’s textile industry from a linear to a circular model could potentially create an additional economy worth around US$5 billion, while saving significant quantities of water and reducing carbon emissions.
The transition, however, will require investment in recycling infrastructure, collection and sorting systems, technology, skilled workers, financing and stronger coordination between government, manufacturers, brands and international partners.
For Bangladesh, the new MoU therefore represents more than an environmental commitment. It could become part of a broader strategy to modernise the textile industry, strengthen export competitiveness and prepare the country for a global apparel market increasingly shaped by sustainability and circularity.
The success of the partnership will ultimately depend on how quickly the two countries can convert the agreement into pilot projects, technology partnerships, investment programmes and measurable improvements across Bangladesh’s textile and RMG value chains.