Lack of premium price for green products, inadequate policies and regulatory measures, absence of access to finance, and long payback period have been identified as major hindrances to green transition in the country's ready-made garment (RMG) sector.
Despite having LEED-certified factories, the entrepreneurs concerned cannot earn additional revenue, as product prices remain the same; and the lack of premium prices for green products discourages others from following suit.
Speakers and participants came up with the observations at the launching programme of 'Securing green transition of the textile and readymade garments sector in Bangladesh' at Brac Centre inn in the city on Sunday.
Centre for Policy Dialogue (CPD) and Sweden Sverige jointly launched the programme with the objective of contributing towards enhancement of environmentally sustainable and climate-neutral growth in Bangladesh with productive employment opportunities for women and youth.
Green economic transition is crucial for sustainable economic growth of Bangladesh, which is vulnerable to the impact of climate change and is also beset with problems of environmental degradation, they opined.
Bangladesh's textile-RMG sector needs to prepare and equip itself for the green transformation to respond to increased future requirements of the important trading partners including the European Union (EU), they suggested.
CPD Executive Director Dr Fahmida Khatun moderated the programme, while Chairman of Standing Committee on Ministry of Environment, Forest and Climate Change Saber Hossain Chowdhury MP was present as the chief guest.
Speaking at the event, Fazlul Hoque, managing director of Plummy Fashions Ltd, said the highest platinum rated green knitwear factory in the world is located in Narayanganj.
"Despite higher investment, we are not getting premium prices from the retailers and brands."
Entrepreneurs have invested 30 per cent more in setting up green garment factories. They are not forced by the law or pushed by the buyers, but they have done it to brighten the image of the industry and the country, he noted.
"It is nearly impossible to convince the buyers to pay extra two cents for garment items, produced in a green and environment-friendly factory."
Appreciating 2.0 per cent corporate tax rebate for the green factories by the government, he opined that it was not sufficient.
Despite availability of green fund, it was untouched due to stringent requirements, he said, and demanded a green policy.
Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) Executive President Mohammad Hatem said, "RMG entrepreneurs are not getting adjusted prices for their products against enhanced production cost - followed by high prices of raw materials, let alone premium prices for the goods - produced in a socially and environmentally way."
He also termed absence of access to green finance loans, especially for medium-category factories, and long payback time as barriers to embrace sustainable manufacturing practices.
Christine Johansson, Swedish Embassy in Dhaka Deputy Head of Mission and Head of Development Cooperation, said the textile-RMG sector is among the top sources of industrial pollution and energy consumption. Its negative impacts on climate and environment have dire consequences for livelihoods and health.
However, the sector is an important provider of employment opportunities for women, and many households. Its productivity and sustainability go hand in hand with safeguarding women's economic rights as well as promoting economic empowerment and poverty reduction, she noted.
Bangladesh has excelled strongly on many levels during the last many years; and once graduated, it would lose the preferential access to the EU and other markets. Thus, higher demands on environment and climate impact would follow, she added.
Dr Fahmida Khatun said the newly-launched programme would explore barriers to green transformation, review existing fiscal measures, identify best practices - suitable for green transformation, and build up evidence on how green transition in this industry would generate new opportunities to benefit firms, workers, economy, and society.
In her presentation, she showed that inadequate policies, regulatory measures and economic instruments for greening the economy, large investment for improved production processes and resource-efficient productivity, and lack of awareness regarding environmental compliance requirements as well as information and knowledge about the process of integrating new transformation activities with the pre-existing business model are among the challenges.
She suggested long-term green policies, including pollution control, resource efficiency and cleaner production, and energy management and chemical waste management policies.
"Mobilisation and access to finance will be the determining factors for promoting green and sustainable growth in the sector," she added.
Founder and executive director at Awaj Foundation Nazma Akter opined that the workers' wellbeing should be at the forefront, as no economic progress is possible without the participation of people and workers.
She emphasised the importance of collaboration among all relevant actors, including manufacturers, buyers, brands, entrepreneurs, workers, associations and the government.
She also highlighted that fair prices should be in place where the buyers and the factories both have equal responsibilities.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said the industry is ready for and open to constructive criticisms, unless and until those are biased.
He said there are 157 USGBC LEED-certified green garment factories in the country, while 500 more are in the pipeline.
He emphasised the importance of more strategic collaboration, better access to technology, and skilled workforce.
Mr Chowdhury asked the organisers to come up with specific recommendations, identifying problems and possible solutions, to raise those to the government agencies concerned ahead of the next budget.
