The European Union is tightening rules on unsold apparel, requiring fashion companies to strengthen controls over product materials, reuse, and disposal.
The Ecodesign for Sustainable Products Regulation (ESPR), effective July 19, 2026, bans large companies in the EU from destroying unsold apparel, clothing accessories, and footwear, subject to specified exemptions. The ban will apply to medium-sized companies from 2030. The European Commission estimates that 4% to 9% of textile products placed on the EU market, or 264,000 to 594,000 tons annually, are destroyed before use.
The rules are increasing compliance requirements across global supply chains, including Bangladesh’s garment sector, which is already facing weaker export values in the EU. Traceability is becoming a key requirement, with Digital Product Passport (DPP) systems linking data across fiber, yarn, fabric, and garment production.
Post-sale supply chains are also under increasing regulatory pressure. The European Environment Agency estimates that one in five garments purchased online in Europe is returned. Between 22% and 43% of returned clothing is destroyed, with the average at approximately one-third.
The EU framework prioritizes resale, reuse, repair, and recycling over disposal, expanding manufacturers’ responsibilities beyond the point of shipment.
Bangladesh has begun addressing these requirements. On August 17, Bangladesh and the Netherlands signed a memorandum of understanding to strengthen cooperation on the circular economy. The agreement covers resource efficiency, waste reduction, recycling, and sustainable production across the textile value chain.
Access to textile waste remains a key constraint. Bangladesh’s import regulations restrict waste imports and impose controls on old and used clothing. The Import Policy Order 2021–24 classifies ‘all kinds of waste’ as prohibited unless otherwise specified, while separate government notices govern imports of old clothing. The restrictions could limit recyclers’ access to a consistent supply of post-consumer textile waste.
Addressing restrictions on textile waste imports is critical, as Bangladesh already generates significant domestic volumes. The country produces about 600,000 tons of textile waste annually, primarily garment production scrap known as jhut. A UN assessment identified the stream as an opportunity to reduce import dependence and support product diversification. Improved collection, sorting, and processing could help retain greater material value within the domestic textile industry rather than diverting scrap to low-value products.
The EU’s circularity requirements create additional compliance pressures for Bangladesh’s textile sector while also opening opportunities for greater competitiveness. Integrating DPP-ready traceability with domestic jhut collection, textile-to-textile recycling, and more efficient customs procedures could strengthen supply-chain efficiency and support higher-value production. Developing these capabilities would position Bangladesh to meet emerging EU market requirements and strengthen its textile recycling infrastructure.
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