Reclaiming Waste: Informal Circularity in Bangladesh and the Struggle for Green Value in the Apparel Value Chain

Abstract This article examines the evolving dynamics of post-production textile-waste management within the apparel global value chain (GVC), driven by climate-change considerations and EU regulations. Historically, in Bangladesh, post-production apparel waste has been managed informally, but increasing circular economy (CE) demands are prompting a shift towards large scale formal recycling. Brands, policymakers and other stakeholders promoting this shift frame it as unambiguously positive emphasizing environmental and economic benefits. Contrary to this, existing informal practices are ignored or framed as inefficient and environmentally harmful, despite limited knowledge about this informal sector. This study explores tensions between new formal recycling practices and existing informal circular systems, which have long supported local livelihoods through textile-waste reuse and recycling. Qualitative analysis reveals that appropriation of high-value textile leftovers by large GVC actors may undermine local businesses and livelihoods without clear evidence of environmental benefits. The concept of green value appropriation is introduced to describe how the new CE strategies of lead firms facilitate green capital accumulation at the expense of local communities involved in existing circularity practices. This study contributes to understanding CE transitions in the apparel industry, highlighting the need for empirical evidence to support policy and practice changes which currently fail to consider existing circular practices, disregard replacement dynamics and lack clear comparative evidence of environmental benefits.