Bangladesh, Netherlands embark on new journey in circular economy

Bangladesh and the Netherlands have signed a memorandum of understanding (MoU) to promote circular economy practices in the country's textile and readymade garment sectors, aiming to accelerate green transformation, reduce waste and enhance export competitiveness.

The MoU was signed today (17 August) at a ceremony titled "MoU Signing on Cooperation in the Field of Circular Economy" at the conference room of the Ministry of Commerce, reads a press release.

Commerce Minister Khandaker Abdul Muktadir signed the MoU on behalf of Bangladesh, while the Netherlands' Minister for Climate and Green Growth Stientje van Veldhoven signed on behalf of her country.

The two ministers joined the ceremony virtually.

Under the agreement, the two countries will expand cooperation in resource efficiency, waste reduction, recycling, sustainable production and green industrialisation across the textile value chain.

Speaking at the ceremony, Khandaker Abdul Muktadir said adopting sustainable production systems and circular economy practices has become essential for the global textile industry.

"As Bangladesh's RMG and textile supply chain is deeply integrated into the global market, international cooperation in this sector needs to be strengthened," he said.

The commerce minister said Bangladesh and the Netherlands have long been working as partners based on mutual trust, shared values and strong economic cooperation. 

The Netherlands is one of Bangladesh's important development and trade partners in areas including water management, agriculture, logistics and sustainable industrial development.

He said the MoU is an important milestone in advancing the partnership towards a greener, more resilient and future-oriented economy.

"Circular economy is not merely about environmental conservation; it is directly linked to strengthening the long-term competitiveness of Bangladesh's export sector, ensuring optimum use of resources, attracting sustainable investment, creating green jobs and addressing emerging demands in international markets," he said.

Muktadir said Bangladesh is moving towards graduation from the Least Developed Country (LDC) category and, in this context, strengthening sustainable industrial capacity, adopting environment-friendly production systems and complying with international standards will help the country maintain its position in global trade.

He stressed that the transition to a circular economy cannot be achieved by any single stakeholder. Governments, industries, financial institutions, development partners, research organisations and consumers need to work together.

The MoU places emphasis on multi-stakeholder cooperation and knowledge exchange, which, he said, would help bring necessary structural changes to the textile sector.

Expressing gratitude for the continued support and constructive participation of the Dutch government, the commerce minister said the partnership could become a successful example of international cooperation for sustainable industrial development and achieving climate goals.

The MoU was signed between Bangladesh's Ministry of Commerce and the Netherlands' Ministry of Economic Affairs and Climate Policy.

Stientje van Veldhoven said expanding the circular economy is now extremely urgent, but no country can complete the transition alone.

She emphasised international cooperation, commercial partnerships and coordinated initiatives across the entire supply chain.

She said officials from the two countries have already discussed priority areas of cooperation and stressed the need to translate those discussions into concrete actions quickly.

Van Veldhoven also expressed interest in Bangladesh and the Netherlands working together in international forums alongside bilateral cooperation, while expressing hope that the partnership between the two countries would become more effective and result-oriented.

Commerce Ministry Secretary Md Ataur Rahman Khan, Bangladesh Ambassador to the Netherlands Faiyaz Murshid Kazi and Dutch Ambassador to Bangladesh Joris van Bommel, among others, attended the programme.

The MoU is expected to create new opportunities for the use of green technologies, innovation and sustainable production in Bangladesh's textile and RMG sectors, while enhancing their competitiveness in international markets.

It is also expected to contribute to making Bangladesh's industrial sector more climate-resilient and better prepared for the future global trading system.