The first meeting of the Policy Coordination Unit (PCU), established at the Ministry of Commerce (MoC), highlighted the need for a National Traceability Strategy to ensure sustainability and better access to the EU market. The meeting recommended that a Task Team hold dialogues with the concerned export sectors to assess their readiness.
The Ministry of Commerce (MoC), in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH under the STILE-II Project, convened this policy discussion for reviewing the ‘Gap Analysis and Needs Assessment’ conducted by Business Initiative Leading Development (BUILD) for addressing the European Union’s Ecodesign for Sustainable Products Regulation (ESPR) and developing a National Strategy on Product Traceability today, 12 March 2026. The meeting was chaired by Md Abdur Rahim Khan, Additional Secretary (Export), MoC.
In a keynote presentation titled ‘ESPR: A Structural Shift in Market Access Architecture’, Dr Wasel Bin Shadat, Research Director, BUILD, informed that ESPR represents a structural shift in market access architecture, moving from voluntary environmental standards to legally binding requirements for nearly all physical goods entering the EU market. His analysis revealed that failure to prepare could put an estimated USD 0.36-1.20 billion in annual export revenue at risk.
Central to this challenge is the implementation of the Digital Product Passport, a system that requires exhaustive data on carbon footprints and material composition to be machine-readable at the border. The research presented by BUILD identified 62 specific readiness gaps across six compliance domains, including 15 Tier 1 gaps that require immediate national intervention to prevent substantial revenue losses. The presentation recommended a Federated Architecture for a traceability platform.
Md Abdur Rahim Khan, Chair of PCU, informed that the EU’s Ecodesign for Sustainable Products Regulation (ESPR) is mandatory for market access to the EU, while DPP is a tool for complying with EU regulatory requirements, and the private sector should be ready.
Ferdaus Ara Begum, CEO of BUILD, further elucidated the gravity of the ESPR alongside other emerging EU regulations. She stressed that a deep dive into these evolving rules is now a necessity for the private sector. Highlighting existing infrastructure, she suggested that the Registered Exporter (REX) system currently managed by the Export Promotion Bureau (EPB) could serve as a foundational framework for developing a robust national traceability platform.
Representing the apparel sector, Vidiya Amrit Khan, Vice President of BGMEA, noted that the EU is increasingly demanding verifiable evidence of responsible and sustainable sourcing. She explained that the ESPR is designed to strictly monitor and ensure that production is free of child labour, unfair labour practices, and environmental degradation. Affirming that compliance is mandatory and non-negotiable, she shared that BGMEA is already working closely with factory owners to prepare them for these stringent requirements.
From a financial perspective, Md Towhidul Islam, Additional Director of the Sustainable Finance Department at Bangladesh Bank, informed the unit that a fund of BDT 2,500 crore is available to facilitate industries in adopting the necessary green and compliant practices.
Michael Klode, GIZ Project Head (STILE-II), clarified the scope of the current collaboration, noting that BUILD and the Ministry of Commerce are not building the Digital Product Passport (DPP) itself, but are instead focused on developing a national strategy for product traceability. This strategic roadmap is intended to equip industries with the tools and guidance needed to effectively meet DPP and traceability standards.
Maj. Rafiqul Islam, Secretary General of LFMEAB, highlighted a gap in awareness within the leather and footwear sectors. He pointed out that many association members remain unfamiliar with ESPR requirements and called for organised awareness campaigns. While acknowledging the need for preparation, he also suggested exploring avenues to accommodate flexible timelines.
A. B. M. Fakhrul Alam, Group Sustainability Lead at Urmi Group, warned that delaying the implementation of traceability systems would lead to an unmanageable compliance burden in the near future. He advocated for the swift development of a simplified national traceability platform to help manufacturers manage data and ease the transition.
Public-sector representatives, including the Ministry of Industries, MoEFCC, Planning Division, Ministry of Textiles and Jute, ICT Division, Ministry of Labour and Employment, BEZA, EPB, SREDA, BSTI, DoE, and SMEF, were present. Representatives from the private sector, including DCCI, BKMEA, BPGMEA, BTMA, BGBA, BTGWPEA, and BAFFA, were present and spoke on the occasion.