Bangladesh must align with EU Green Deal by 2030 to safeguard RMG exports: Experts
Experts warn that alignment with the EU Green Deal requirements, including the Digital Product Passport (DPP), must be achieved by approximately 2030
Bangladesh must urgently implement a national strategy for product traceability and sustainability to safeguard its dominant Ready-Made Garment (RMG) exports to the European Union (EU), which accounts for 92% of the country's trade with the bloc.
Experts warn that alignment with the EU Green Deal requirements, including the Digital Product Passport (DPP), must be achieved by approximately 2030.
This urgent need was the central focus of a high-level policy discussion on Product Traceability held in Dhaka, convened by the commerce ministry in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH under the STILE-II Project, according to a press release.
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In her keynote presentation, Ferdaus Ara Begum, CEO of BUILD, said traceability has become a national priority as the EU rolls out new rules under the circular economy agenda, Digital Product Passports (DPP), responsible business conduct, and sustainability disclosures. She noted that Bangladesh's heavy dependence on the EU market for RMG exports makes compliance unavoidable.
She identified major challenges – including data validation, interoperability, institutional coordination, and upfront investment – while pointing to international examples from Vietnam, China, Japan, Korea, and India, where public-private co-investment has enabled robust traceability systems.
A National Traceability Strategy, Ferdaus argued, is essential, supported by sector-specific measures such as a jhut ( scrap) sector directory, institutional frameworks, expanded data infrastructure, and green financing options to help industries adopt traceability solutions.
Mahbubur Rahman, commerce secretary, stressed the need to develop a digital platform for data exchange, citing Germany's model, and sought support from development partners. He also initiated the drafting of a National Traceability Strategy and proposed piloting sector-specific traceability initiatives under MoC leadership with GIZ's technical support.
Sector representatives from BGMEA, BKMEA, and the leather industry reported progress in ongoing pilot projects but said these must expand to include more data layers and cover mid- and low-tier firms – including subcontracting units and animal-level data in tanneries – to meet emerging global requirements.
BGMEA Director Sheikh HM Mustafiz noted that RMG factories face increasing pressure from brands, buyers, and private consultants seeking data via multiple platforms without a uniform global standard. A harmonised national standard, he said, would ease the burden and reduce compliance costs.
Speaking on behalf of Germany, First Secretary Jannis Hussain emphasised two significant barriers: the limited availability and generation of quality data, and the high cost of the digital infrastructure required to support traceability systems.
