Validation of circular textile pilots in Bangladesh

12/05/2026
Validation of circular textile pilots in Bangladesh

Switch to Circular Economy Value Chains (SWITCH2CE), a global project backed by the European Union, the Government of Finland and implemented by UNIDO, presented its findings at a seminar in Dhaka last week following the completion of two industrial recycling pilots. H&M Group and Bestseller each backed a pilot.  

The H&M-backed pilot focused on recycling solutions for cotton and polyester textiles and apparel made in Bangladesh. With chemical recycling company Circ, 2.6 tonnes of cotton/polyester blended textile waste were successfully recycled and used to make products in current H&M collections. The project also established a traceable waste system for polyester, collecting 260 tonnes with 85% compliance, integrating 140 workers, and reaching a capacity of 50 tonnes per month. Switch2C believes this chemical recycling pathway could unlock up to $500 million in potential investment. 

The goal of the pilot supported by Bestseller was to test traceability solutions for post-industrial waste with suppliers in Bangladesh. This is believed to contribute to increasing the value of the waste and creating a stronger business case for segregating waste on the factory floor. Between 2023 and 2025, participating companies grew from four to 18 manufacturers. Some 16,800 tonnes of textile waste were segregated, and 1,780 tonnes directed to recycling. This is estimated to have generated €1.38 million in value, underscoring the business case for circularity.

Speaking at the seminar, Bangladesh commerce secretary Abdur Rahim Khan stated: “Bangladesh stands at a pivotal moment as we prepare for our graduation from Least Developed Country (LDC) status and respond to evolving expectations from key trade partners such as the European Union. In this context, developing and adopting a robust national strategy on circular textiles is not only timely, but essential to safeguarding our competitiveness.”