1. A VAT of 7.5% applies when purchasing textile waste and 15% when selling it. This high taxation discourages recycling, as businesses often prefer disposing of waste over engaging in costlier recycling processes.
2. The bonded warehouse system, designed to boost exports, complicates textile waste transactions. Since bonded imports are intended solely for export, diverting textile waste to the domestic market incurs duty liabilities unless strict procedures are followed—creating additional barriers to circularity within Bangladesh’s textile value chain.
3. Waste Syndicates operate in Gazipur, where they control the flow of factory cutting waste by directing waste trucks to their affiliated aggregator

1. FDI is a driving force in Bangladesh RMG sector where it strategically presents itself as a destination for businesses to relocate their low-end readymade garments manufacturing units.
2. Seeking China’s cooperation to transition from RMG sector cotton-based manufacturing to producing high-value non-cotton items.
3. Import of raw cotton is duty free but there is a refundable import duty on MMF of upto 59% upon export
4. Labour cost in Bangladesh is significantly lower than other major T&A producing countries, giving it a competitive edge for low-cost production
5. Few major apparel manufacturers include- Fakir Apparels, Ananta, Viyellatex and DBL group and fibre producers like Crorie Sasco, Chand Group of Industries and Echo Cotton Mills Limited

1. The demand for recycled yarns within the country are satiated by exports as the domestically  recycled ones are low quality due to outdated technology.
2. Bangladesh holds significant untapped potential for circularity. Large brands and Bangladesh Garment Manufacturers and Exporters Association ( BGMEA )have initiated circular fashion efforts and waste to textile recycling pilots to leverage this untapped potential.
3. Significant underreporting of waste exports

Some of the regulatory mechanisms around green energy are as follows:

1. Renewable Electricity Generation by source: Solar PV (52.2 %), Hydro (47.5%), Wind  (0.3%)
2. Net Metering Policy 2018: This policy enables RMG factories to generate solar power and feed excess electricity into the national grid for billing credits. Companies adopting clean energy also benefit from a 2% tax incentive.
3. The Green Transformation Fund (GTF): Launched by Bangladesh Bank in 2016, the GTF offers long-term, low-cost foreign currency loans for green investments across export sectors. It supports over 77 projects in areas like energy efficiency, waste management, and pollution control.
4. Bangladesh Bank’s Green Refinance Scheme: It provides a BDT 10B evolving credit line, enabling commercial banks to re-lend at ≤5% interest with 5–8 year tenures. Open to all industries, including textiles and apparel, it supports 55 approved “green” project categories such as solar PV, biogas, effluent treatment, and energy efficiency upgrades. Banks access funds from Bangladesh Bank at 0–2% and add only a small margin.