Towards circular fashion : A framework for jhut management

As global attention to environmental sustainability intensifies, it is imperative to examine the legal and policy gaps that hinder the circular management of Bangladesh's post-industrial textile waste, locally known as jhut. Generated primarily from apparel manufacturing as pre-consumer fabric waste, the annual production of jhut in the ready-made garments (RMG) sector amounts to approximately 440,000 tonnes.

Inadequate waste handling across the jhut value chain exacerbates environmental risks, undermines labour protections, and threatens the sector's export competitiveness. Despite the global fashion industry's shift towards stricter circular economy (CE) regulations, Bangladesh continues to dispose of jhut unsustainably or export it at minimal value, highlighting serious regulatory shortcomings and systemic failures in waste governance.

Although Bangladesh is the second-largest exporter of RMGs globally, its sustainability performance, particularly in post-industrial textile waste management, is increasingly under scrutiny. Circular economy (CE) approaches emphasise resource efficiency through waste reuse, reduction, recycling, and remanufacturing to prevent environmental degradation. Global buyers and regulatory bodies, especially within the European Union (EU), now demand recycled, eco-designed, and traceable textiles.

Key regulatory initiatives—such as the EU Sustainable and Circular Textiles Strategy and the Digital Product Passport—emphasise recycled content, eco-design, and full supply chain transparency throughout a product's lifecycle. In this evolving regulatory landscape, Bangladesh must abandon informal, environmentally harmful jhut management practices and develop a legally robust, CE-compatible framework for managing pre-consumer textile waste—or face severe economic setbacks due to shrinking export markets and mounting environmental harm.

This article explores the legal transition required for sustainable jhut governance across three thematic areas: (i) a review of the current legal and policy framework, (ii) a diagnosis of major regulatory gaps, and (iii) reform proposals aligned with global circular textile regulations.

Legal and policy framework for circular jute management

Bangladesh's legal framework for managing jhut in a circular manner is both underdeveloped and fragmented. There is a distinct lack of comprehensive regulation and industry guidelines governing the entire jhut value chain. Foundational laws such as the Environmental Conservation Act 1995, the Labour Act 2006, the National Environmental Policy 2018, and the Textile Policy 2017 offer partial coverage of environmental protection, waste disposal, and labour standards.

However, they lack specific provisions for jhut management within a circular economy paradigm. Likewise, the Environmental Rules 2023 and Solid Waste Management Rules 2021 omit any mandates for traceability or recycling of textile waste, further limiting enforcement and oversight.

On the international stage, conventions and regulations such as the Basel Convention on Hazardous Waste, the UN Framework Convention on Climate Change, the EU Green Deal, and the Circular Economy Action Plan offer clear legal templates for promoting circularity, waste minimisation, recycling, and environmental justice.

Although Bangladesh has ratified some of these frameworks, it has yet to translate them into enforceable national laws specifically targeting textile waste governance, missing key opportunities for CE integration and green industrial transformation.

Regulatory gaps hindering circularity in jhut management

Absence of legal definition and classification: Jhut lacks a formal legal classification—neither recognised explicitly as "waste" nor as a "secondary product". This legal ambiguity generates confusion regarding its ownership, status, and liability in transactions. In the absence of a definitive classification, informal actors dominate the jhut economy without oversight or accountability. This vacuum obstructs the development of a transparent, accountable waste management system, hampering efforts at formalisation and environmental sustainability.

Informal, untraceable value chain: The jhut value chain—including collection, processing, and trade—is deeply entrenched in informality and remains unregulated. It is often controlled by unlicensed political intermediaries or so-called "jhut mafias". Without contractual obligations, licensing requirements, shipment records, or origin traceability, the entire supply chain escapes regulation. This undermines environmental safeguards and labour protections, in direct violation of international norms, especially EU regulations that demand full traceability and circular reporting.

Lack of Extended Producer Responsibility (EPR): Bangladesh currently lacks a statutory mechanism obligating apparel producers to manage their textile waste in an environmentally sustainable manner. EPR frameworks—central to EU CE legislation such as the Circular Textile Strategy (2022) and the Revised Waste Framework Directive (2023)—require producers to assume responsibility for the full lifecycle of their products, including waste treatment and recycling. In Bangladesh, the absence of such legislation allows garment manufacturers to offload their waste responsibilities, perpetuating unsustainable jute disposal practices.

Lack of legal protection for Jhut workers: Informal jhut workers—predominantly women and children—form a critical yet neglected part of the textile waste value chain. These workers endure unsafe conditions, low wages, and a total absence of formal labour protections.

They typically work without contracts, safety equipment, healthcare, or social security. The Labour Act 2006 does not recognise this workforce, leaving them excluded from basic rights and international labour protections, violating both Bangladesh's constitutional guarantees and global labour standards.

Institutional inefficiencies: Institutional shortcomings within the Department of Environment (DoE) and the environmental court system severely undermine Bangladesh's waste governance. The DoE lacks sufficient technical capacity, trained personnel, and enforcement infrastructure to regulate jhut management effectively. Its interventions are mostly reactive and punitive rather than preventive. Environmental courts suffer from limited jurisdiction, bureaucratic inertia, and inadequate enforcement capabilities, failing to deliver timely remedies for environmental violations.

Absence of a national circular economy strategy: Unlike countries such as Vietnam, Thailand, and China, Bangladesh lacks a comprehensive CE strategy for textiles. Although the Textile Policy 2017 references eco-innovation, it remains vague, with no actionable provisions, enforceable targets, or implementation roadmap. The absence of a national CE strategy impedes systematic progress toward circularity.

The way forward: Recommendations for reform

In light of the identified gaps, Bangladesh urgently needs a coherent legal and policy roadmap to formalise its jhut sector and align with circular economy standards.

Enact a comprehensive jhut management law: A dedicated law should legally define jhut as recyclable industrial waste and a valuable resource. The law must establish ownership rights, trade protocols, and processing obligations. It should require environmental clearances, contractual agreements under the Contract Act 1872 and Sale of Goods Act 1930, and mandate recycling or reuse over incineration or landfill disposal.

Formalise and digitise the supply chain: All actors in the jhut value chain should be licensed and regulated. A digital tracking system, such as a Manifesto platform or QR-based labelling, should be introduced for real-time traceability. Establishing official jhut collection hubs will eliminate mafia control, improve safety standards, and ensure transparent processing.

Introduce EPR and eco-design legislation: An Extended Producer Responsibility (EPR) law should hold RMG producers accountable for waste disposal and recycling. This should include mandatory financial contributions to recycling infrastructure and requirements for using recycled inputs. Simultaneously, eco-design legislation should mandate environmental impact assessments at the design stage, ensuring product compatibility with CE principles and access to international markets.

Legally recognise and protect jhut workers: Amend the Labour Act to formally recognise jhut workers and extend to them legal rights and protections. Their classification as hazardous workers should trigger entitlements such as living wages, safety gear, formal contracts, training programmes, health services, and labour inspections—aligned with ILO conventions and the Sustainable Development Goals (SDGs).

Build institutional and judicial capacity: The DoE should be restructured to enhance technical skills, expand regional offices, and modernise monitoring tools. Environmental courts must be empowered with broader mandates, streamlined processes, and greater enforcement authority. Cross-sectoral collaboration among institutions, industries, and civil society is vital for promoting CE compliance.

Develop a national CE strategy for textiles: A legally binding national circular economy strategy should include measurable targets for waste reduction, eco-innovation, and textile recycling. This strategy must incentivise private investment, promote education and awareness, and establish cross-ministerial accountability.

Facilitate multi-stakeholder governance: A national CE council should be established to include regulators, industry stakeholders, labour representatives, and environmental advocates. Inclusive policymaking enhances legitimacy, facilitates compliance, and ensures socially just and economically viable reform implementation.

Bangladesh stands at a pivotal moment. Transitioning from a linear to a circular jute management system is no longer optional—it is an environmental necessity and an economic imperative. Without comprehensive legal reform, informal and unsustainable practices will continue to jeopardise the RMG sector's global reputation and market access.

Legal recognition of jhut as a resource, integration of EPR, institutional capacity-building, and worker protections are essential to align Bangladesh's textile waste governance with international circular economy principles. The urgency is undeniable—Bangladesh must act decisively to ensure resilience, justice, and sustainability in its RMG sector.

Dr Muhammod Shaheen Chowdhury is a Professor of Law at the University of Chittagong

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of his employer or The Business Standard.