The European Green Deal aims to source all products with no emission by 2050. EU being one of the major markets for Bangladesh's RMG sector, creating a sustainable garments sector is instrumental for Bangladesh.
Bangladesh’s ready-made garments sector has advanced significantly over the last decade. In the fiscal year 2022-2023, the export value of ready-made garments reached about $47 billion. Currently, Bangladesh is leading globally with the highest number of green garment factories and the most top-rated ones. It has 213 eco-friendly factories certified by the U.S. Green Building Council (USGBC), including 80 rated platinum, the highest category. Comparatively, Indonesia has 40 green factories, India has 30, and Sri Lanka has 10.
80 Platinum Rated Factories
The highest rated category
10% of Global Carbon Emissions
Attributable to the industry
However, the fashion industry, as highlighted by the United Nations Environment Programme (UNEP), contributes 10% of global carbon emissions annually. Without intervention, these emissions could increase by over 50% by 2030. As the world’s second-largest exporter of RMG, holding 7.9% of the market share, Bangladesh plays a significant role in this environmental challenge. Therefore, ensuring sustainability in the apparel industry is crucial for Bangladesh.
Strategies for Sustainable Garments Sector in Bangladesh
Bangladesh, often known as the world’s “textile hub“, boasts the largest green ready-made garment (RMG) industry globally. These factories are committed to environmental sustainability and ethical practices. Despite their efforts, many face challenges in securing fair prices from brands.
A recent research paper revealed that extreme heat waves and floods could reduce apparel export earnings by $65 billion for four Asian countries, including Bangladesh, by 2030. Worker productivity could decline due to heat, and factories might close due to climate disasters, posing significant concerns.
Thus, creating a decent work environment is crucial for sustainable development. Prioritising fair wages, safe conditions, and opportunities for career growth ensures worker well-being and industry longevity.
The BGMEA has revamped its approach with environmental, social, and governance (ESG) priorities, expanding beyond basic sustainability practices to include circularity. By 2030, the BGMEA aims to increase sustainable practices by 50%, aligning with Sustainable Development Goal 12 on sustainable consumption and production.
Despite challenges, green RMG factories have opportunities to thrive. Consumers and brands increasingly value ethical and sustainable practices, boosting demand for responsibly sourced garments. Green factories can capitalise on this trend by positioning themselves as sustainability leaders.
Technological advancements have also lowered long-term operational costs in sustainability. Investments in modern machinery, energy-efficient processes, and waste reduction measures lead to cost savings over time.
Eco-friendly materials are crucial for green RMG factories. They prioritise textiles with minimal environmental impact, such as organic fibres, recycled fabrics, and low-impact dyes. Embracing these materials reduces ecological footprints and supports responsible sourcing.
Waste reduction is another priority. Green factories use innovative methods to minimise waste, like efficient pattern cutting, material recycling, and resource optimization. These efforts not only reduce environmental impact but also improve cost-efficiency.
Capacity building and collaboration are vital strategies for green RMG factories in Bangladesh. Investing in employee training enhances productivity and product quality. Skilled employees adapt to new technologies, innovate processes, and maintain international standards, enhancing factory reputation and negotiating better prices.
Recognition of Green Factories in Bangladesh
In 2022, despite facing significant challenges from the aftermath of Covid-19 and the Ukraine war, Bangladesh’s ready-made garment (RMG) industry achieved a remarkable milestone. Thirty garment factories were internationally recognized as green, marking the highest number of green certifications in a single year.
LEED (Leadership in Energy and Environmental Design) certification, awarded by the United States Green Building Council (USGBC), is globally renowned for its stringent criteria in carbon emissions, energy and water usage, waste management, and indoor environmental quality. Among the certified factories, 80 hold platinum ratings, 120 gold, and 10 silver, with four receiving basic certification. An additional 550 Bangladeshi factories have registered for LEED certification.
Bangladesh stands out globally with 9 of the top 10 greenest garment factories and 53 of the highest-scoring green factories worldwide located within its borders. This leadership represents Bangladesh’s role in sustainable garment production on a global scale.
Potential of Renewable Energy in Bangladesh
Bangladesh holds substantial potential for generating electricity from renewable energy sources. Solar power, in particular, has emerged as a commercially viable option. Beyond solar, other renewable sources include hydropower, wind power, biogas, and utilising waste heat from industrial processes.
50,000 MW
From grid-connectable solar systems
30,000 MW
From wind power
According to estimates by USAID and the National Renewable Energy Laboratory, Bangladesh could potentially generate up to 50,000 megawatts from grid-connectable solar photovoltaic (PV) systems and 30,000 megawatts from wind power. This indicates a total commercial renewable energy production potential of around 80,000 megawatts in the country.
In addition to solar and wind, Bangladesh is exploring renewable energy from ocean waves, ocean heat, tidal energy, and biogas. The Kaptai hydropower project is already harnessing water flow, while biogas is widely used in rural areas for cooking and lighting. Waste recycling also presents opportunities for producing renewable energy, contributing to sustainable development across Bangladesh.
Contribution of Local Start-Ups Towards Sustainability
Bangladeshi startups are transforming the textile industry by embracing innovation and sustainability, setting new benchmarks for global competition.
Build Bangladesh and the H&M Foundation host the Needle Innovation Challenge (NIC), a hub for fresh ideas that has birthed startups like Plastile, foamTEX, ThreadBridge, Thrift Store, Rentify, Sui-Chorki, FemmeStitch, and Pina-TEX Wear.
Plastile focuses on turning plastic waste into valuable RMG accessories, opening up a new market for recycled materials. Pina-TEX Wear is working on reducing Bangladesh’s reliance on imported cotton by developing a cost-effective method to extract fibre from pineapple leaves as an alternative.
Green Dye is another startup aiming to replace synthetic and chemical dyes with dyes made from microorganisms, potentially reducing the $178 million Bangladesh spends annually on synthetic dyes.
DenimRevive is dedicated to sustainability by upcycling textile waste into new products like clothing, accessories, and crafts. They target the global sustainable fashion market, which is worth $6.89 billion.
Ackermans is rethinking clothing accessories by using sugarcane bagasse to create biodegradable buttons and tags for the RMG industry.
Shimmy Technologies, an ed-tech company, is preparing RMG workers for the future of automation by using gamification to train and upskill them, with a focus on female workers who are often left behind in technological advancements.
Some startups are converting plastic waste into useful accessories for ready-made garments, while others use microbes to produce organic dyes and biodegradable packaging. Partnership for Cleaner Textile (PaCT) has helped over 200 factories adopt sustainable practices, saving significant amounts of water, energy, and chemicals while ensuring their products are eco-friendly.
Committing to the Fashion Charter
H&M Pledged to be Carbon Positive by 2040
And carbon neutral within 2030
In 2018, the fashion industry took a significant step towards cleaner energy by signing the Fashion Charter under the United Nations Framework Convention on Climate Change (UNFCCC). Major fashion brands and industries, including those in Bangladesh, committed to this charter. The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) became a signatory, along with fashion giants PUMA and H&M. H&M has pledged to achieve carbon neutrality by 2030 and become carbon positive by 2040, while PUMA aims to cut carbon emissions by 35% by 2030.
The Joint Program INFF4SDGs is helping the Bangladeshi government create an integrated financing framework to better mobilise resources from both public and private sectors to achieve the Sustainable Development Goals (SDGs) by 2030. As part of this initiative, H&M and PUMA are working with UNDP Bangladesh to identify the challenges and opportunities within the apparel industry that can facilitate the transition to greener energy. The INFF4SDGs focuses on three specific SDGs: Clean Water and Sanitation (SDG 6), Affordable and Clean Energy (SDG 7), and Climate Action (SDG 13). SDG 7 emphasises the importance of providing everyone with access to affordable, reliable, and modern energy services by 2030.
The CREATE Project
Initiated in October, 2022, the Circular Economy in Bangladesh’s Apparel Industry (CREATE) project is exploring how to shift global apparel value chains towards a circular economy, with a focus on Bangladesh’s garment sector. As part of this initiative, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) aims to cut greenhouse gas emissions and energy use by 30% by 2030 and reduce deforestation by the same amount.
1.40 Million Tonnes of CO2 Emissions
Can be reduced annually
BGMEA members are investing in solar energy to address the energy crisis and promote a greener Bangladesh. There is potential to install over 2GW of solar rooftop systems in the garment industry, which could generate about 2,600 GWh of clean electricity annually. This would ease the demand on grid electricity and help manage the energy crisis. Additionally, these solar systems could prevent 1.40 million tonnes of CO2 emissions each year, equivalent to planting around 2.14 million trees, reducing reliance on fossil fuels.
To enhance safety in apparel manufacturing, BGMEA aims for all industries to achieve Zero Discharge of Hazardous Chemicals (ZDHC) Certification and Testing Programmes by 2030. They are also working to halve the blue water footprint. The Danish International Development Agency (Danida) is backing BGMEA in this project, highlighting the industry’s importance to international development partners.
The PROGRESS Programme
SGS Bangladesh Limited, a leading global company in testing, inspection, and certification, has teamed up with Swisscontact to launch the “Promoting Green Growth in the Ready-Made Garments Sector Through Skills” (PROGRESS) program. Running from 2022 to 2026, this four-year initiative is funded by the Swedish International Development Cooperation Agency (SIDA) through the Embassy of Sweden in Bangladesh. The program aims to boost sustainability, productivity, and compliance in Bangladesh’s ready-made garments (RMG) sector.
As part of PROGRESS, SGS Bangladesh Limited will work closely with six Tier-2 RMG factories located in Dhaka, Gazipur, Narayanganj, and Chattogram. This collaboration focuses on enhancing productivity, promoting environmentally sustainable practices through green skills training, and ensuring adherence to international standards and regulations. On September 14, 2023, a day-long training session on the Higg Facility Environmental Module (Higg FEM) was held. This training aimed to provide participants with a thorough understanding of the Higg Index for sustainability assessments, helping them better apply these practices within the industry.
Offshore Wind Project
In 2022, Sweden’s H&M Group made an investment in Bangladesh’s first offshore wind project, developed by Copenhagen Infrastructure Partners. H&M, alongside Danish retailer Bestseller, is contributing an unspecified amount as part of a $100 million corporate fund organised by Copenhagen Infrastructure Partners and the Global Fashion Agenda. The project, set to potentially begin operations by 2028, is open for other companies to join.
Fashion brands that have pledged to reduce emissions by at least 50 percent by 2030 and achieve net zero by 2050, and are able to invest at least $10 million, are eligible to participate. The fashion industry sees about 70 percent of its emissions from upstream activities like manufacturing, which heavily relies on coal, petroleum, and gas for electricity.
40% of the Country's Energy Demand
Aimed to be fulfilled by the project by 2041
725,000 Metric Tonnes
Annual reduction in emissions planned
This offshore wind project, with a planned capacity of around 500 megawatts, will be Bangladesh’s first utility-scale installation of its kind. The project aims to provide 40 percent of the country’s power by 2041 and is expected to reduce annual emissions by approximately 725,000 metric tons once completed.
Collaboration between Sweden and Bangladesh
Sweden has proposed a partnership with Bangladesh to support a green transition in the garment industry. This offer was made during a meeting between Swedish Ambassador to Bangladesh Alexandra Berg Von Linde and State Minister for Power, Energy, and Mineral Resources Nasrul Hamid. The ambassador also discussed increasing Sweden’s contribution to the development of renewable energy in Bangladesh.
3253 MW Capacity
Ongoing projects
7861 MW Capacity
Projects in the pipeline
Bangladesh is actively promoting renewable energy, currently generating 12,047MW from renewable sources. Ongoing projects include solar power initiatives with a capacity of 3,253MW, and additional solar projects totaling 7,861MW are in the pipeline. While research on wind power continues, wind mapping has already been completed. By 2041, Bangladesh aims for 40% of its electricity to come from clean energy sources. Currently, one of the main challenges in Bangladesh is ensuring affordable and uninterrupted electricity for all.
Increased Awareness on Renewable Energy
Experts and representatives from the garment industry are urging the government of Bangladesh to reduce import taxes on solar power equipment and other materials used for renewable energy. They emphasise the need for supportive government policies that encourage local production of renewable energy equipment.
This appeal was voiced during a focus group discussion organised by the Business Initiative Leading Development (BUILD) on “Energy Transition in Bangladesh Apparel Sector: The Case of Market Access to the EU,” held in May 2024. Import duties on raw materials necessary for establishing renewable energy plants are high, ranging from 25% to 28%, and in some cases, reaching up to 85%.
The European Green Deal aims to shift towards emission-free products across Europe by 2050. As part of this initiative, European buyers are pushing Bangladeshi suppliers to adopt renewable energy sources in apparel and RMG factories.
Bangladesh’s apparel exports consistently make up 80-85% of its total export share, totaling $47 billion in 2023, with the EU being a key market. Currently, RMG factories can only generate 10-15% of their energy from rooftop solar panels, requiring them to purchase renewable energy certificates to cover the rest, which adds significant costs. However, buying these certificates does not reduce local emissions.
What Can Bangladesh Gain From China?
China has become a leader in renewable energy, producing more than any other country. In 2021, nearly 30% of China’s power came from renewable sources, up from 7%, around a decade earlier. Bangladesh wants to reach 40% renewable energy by 2041, and China’s experience could help us get there.
The Centre for Policy Dialogue (CPD) looked into how China switched from using lots of fossil fuels to becoming a green energy powerhouse. They studied China’s laws, monetary matters, and technical know-how in renewable energy. In October 2023, the CPD held an online meeting to talk about their findings. They discussed China’s green energy success and how foreign investment could help Bangladesh’s renewable sector.
The Chinese Ambassador to Bangladesh, Mr Yao Wen, pointed out that Bangladesh has plenty of sun, wind, and tidal energy to use. He mentioned projects like the solar plant in Sonagazi and the wind farm in Cox’s Bazar as good examples. Now, Bangladesh is not just seeking FDI in China; it is also eager for technology transfer. Bangladesh has designated special economic zones to facilitate foreign investors, and the emphasis is on attracting investments in manufacturing plants to foster economic growth and technology exchange.
Now, more Chinese consumers, designers, and companies are getting into sustainable fashion. They’re looking at new ways to make clothes, using better materials, and treating workers fairly. This change is happening because people care more about the environment, the government is making new rules, and customers want different things.
Chinese fashion makers are using more eco-friendly materials like organic cotton, bamboo, and recycled fabrics. These are better for the environment because they need fewer chemicals and less water to make. Companies are also trying to be more open about how they make their clothes and treat their workers.
The idea of a “circular economy” is catching on in China’s fashion world. This means designing clothes to be used again, recycled, or turned into something new. Brands are looking at ways to fix, rent out, resell, or recycle clothes to make them last longer and create new business opportunities.
Thus, working with China could open up new possibilities for Bangladesh’s fashion industry, helping it become more sustainable and successful.
Gender Disparity in Job Roles
Women in Bangladesh's RMG sector primarily work as helpers and machinists, with fewer opportunities as line supervisors or quality controllers. Administrative and management roles are predominantly held by men, creating a gender imbalance in job positions.
Factory Infrastructure
Despite the RMG sector's significant contribution to Bangladesh's GDP and export earnings, inadequate infrastructure remains a critical challenge. This has led to safety concerns in factories, highlighted by tragic incidents like the Rana Plaza and Tazrin garments disasters, which resulted in the loss of nearly 2,000 lives and injuries to thousands more.
Unskilled Workforce
A large portion of garment workers in Bangladesh are women with limited education and training. The over-reliance on unskilled labour contributes to lower productivity and higher production costs for apparel manufacturers.
Lead Time
Currently, Bangladesh faces longer lead times compared to China in garment production. Woven garments have an average lead time of 90 to 120 days, while knitwear garments take 60 to 80 days. In contrast, China manages shorter lead times of 40 to 60 days for woven garments and 50 to 60 days for knitwear garments, posing a competitiveness challenge.
Inflation Impact
The inflation rate in China is comparatively lower than that of Bangladesh. This disparity in inflation rates hinders Chinese investments in Bangladesh's RMG sector despite its potential.
Suggested Reforms
Developing a Comprehensive Green Strategy
Create a detailed strategy for transitioning the textile and RMG sector to sustainable practices. This should include clear goals, roles, timelines, budgets, and monitoring systems. Key ministries, including the Ministry of Environment, Forest and Climate Change (MoEFCC), Ministry of Industries (MoI), Ministry of Commerce (MoC), Ministry of Finance (MoF), Bangladesh Bank (BB), Ministry of Planning (MoP), and the Prime Minister's Office (PMO), along with industry associations, buyers, academia, and think tanks should collaborate to ensure the strategy is well-rounded and evidence-based.
Creating a Task Force to Review Policies
Form a task force to evaluate current policies and regulations for the textile and RMG sector's green transition. This group, including key government agencies such as MoEFCC, MoI, MoC, MoF, BB, and MoP, along with industry stakeholders, will identify and resolve policy conflicts and ambiguities, fostering a supportive environment for sustainability.
Developing a Common Framework for Green Standards
Establish a unified framework for green standards and certification, based on international best practices. This collaboration among government agencies such as MoI and MoEFCC, industry associations, buyers, and academia will ensure consistent environmental benchmarks, making it easier and cheaper for factories to meet green certification requirements.
Withdrawing Fiscal Support to Polluters
Remove financial support from polluting industries and fossil fuel-based power. Redirect these funds to support textile and RMG factories investing in green technologies. Strong leadership from key ministries, including MoI, MoF, and Ministry of Power, Energy and Mineral Resources (MoPEMR), is essential to manage this shift effectively.
Establishing a Credit Guarantee Scheme
Create a credit guarantee scheme to help smaller factories access sustainable financing. This could include loan guarantees or insurance for SMEs investing in green practices. Bangladesh Bank (BB), commercial banks, buyers, and international partners should contribute to these funds, with the Ministry of Industries (MoI) coordinating efforts.
About the Author
Umme Farzana Rupa, a former debater, currently excelling as a passionate student at Bangladesh University of Professionals. Engaging communicator and dedicated learner, she continues to thrive in academics, leaving her mark on campus with her inquisitive spirit and determination.