As the country is moving forward to expedite economic growth and is getting more integrated with the global market, it is also bringing challenges along which includes the need to adhere to international labour laws ensuring safety standards in working conditions and the need to be environmentally compliant.
In fact, green economic transition is crucial for a sustainable growth. Following Bangladesh’s graduation from least developed countries (LDC) category in 2026, the country will need to comply with stringent compliance requirement in many areas including environment to remain competitive.
The textile and readymade garments (RMG) industry, being one of the most resource-intensive sectors, has high potential to contribute towards achieving Bangladesh’s climate goals.
In this context, the Centre for Policy Dialogue (CPD) organised a programme on Sunday titled “Securing Green Transition of the Textile and Readymade Garments Sector in Bangladesh” in collaboration with the Embassy of Sweden in Bangladesh.
The objective of the programme was contributing towards the enhancement of environmentally sustainable and climate-neutral growth in Bangladesh with productive employment opportunities for women and youth.
The programme explored barriers to green transformation, review existing fiscal measures, identify best practices suitable for green transformation, and building up evidence on how green transition in this industry will generate new opportunities to benefit firms, workers, economy and society.
Dr Fahmida Khatun, Executive Director, CPD, moderated the dialogue and made a presentation introducing the programme.
She said, GoB has already made commitments for greenhouse gas (GHG) reductions and other climate measures and shown its efforts through the formulation of several regulatory and fiscal policies.
In line with the increasing need to enhance environmental compliance, this calls for the initiatives of all stakeholders. Especially, the private sector has to play the most important role in mitigating the challenges of climate change. Green transition will help maximise benefits of industrial development not only on economic front, but also on environmental and social fronts as well.
Dr Fahmida also underscored a number of challenges in this regard.
She said, policies, regulatory measures and economic instruments for greening the economy and the sector are not adequate. Green transition of this industry requires large financial investment for improved production processes and resource-efficient productivity. Lack of awareness, as well as lack of knowledge and skills, lack of any premium prices for green products, are some of the other challenges.
Besides, small and medium sized factories or factories in tier 2 and tier 3 may not be in a position to make investment for green production process.
To overcome the challenges, attention needs to be shifted to issues such as re-skilling and up-skilling the labour force; strengthening of policies including pollution control policies, resource efficiency and cleaner production policies, energy management policies, and chemical waste management policies; accessing and mobilising finance; and so forth.
Ms Christine Johansson, deputy head of Mission and head of Development Cooperation, Embassy of Sweden remarked that this programme’s objective is to contribute towards enhancement of an environmentally sustainable and climate-neutral growth in Bangladesh with productive employment opportunities for women and youth.
Sweden has a five-year-long development strategy for Bangladesh, and focuses on four strands of development: gender equality; climate and environment; inclusive economic development; and health including sexual and reproductive health rights.
In light of climate related challenges, all stakeholders should play a collaborative role; especially private sector must play a strong role here.
Mr Saber Hossain Chowdhury, MP, chairman, Standing Committee on Ministry of Environment, Forest and Climate Change, Bangladesh Parliament, graced the dialogue as the Chief Guest.
Thanking CPD for undertaking this programme, he highlighted issues including fair pricing, incentivising the greening of this sector, and income tax benefits.
He agreed upon a partnership between various stakeholders to build a roadmap to translate the suggestions into financial benefits.
Mr Mohammed Zahidullah, chief sustainability officer, DBL Group, said Bangladesh textile industry has already started its journey towards green transition.
To gear up the transition process and sustainability, financial support—including incentive benefits and tax benefits—is expected from the government, he remarked.
Also, receiving the fair price from the buyers is still due. Without the support from buyers and the government, success cannot be achieved by putting the burden on the shoulders of the entrepreneurs and brands alone.
Mr Md. Fazlul Hoque, managing director, Plummy Fashions Limited and Former President, Bangladesh Employers Federation (BEF) and Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), said that green transition is such a responsibility which is carried on by the brands and entrepreneurs alone.
Mr Hoque raised the concern over lack of adequate policy support in this regard, and talked about issues like incentivising new entrepreneurs to a greater extent and providing quality environment for the workers.
He looked forward to more pertinent interactions with policymakers through the programme.
Ms Nazma Akter, founder and executive director, Awaj Foundation, emphasised that, no economic progress is possible without the participation of people and workers wellbeing of the workers should be at the forefront.
For that, she emphasised the importance of collaboration between all relevant actors including manufacturers, buyers, brands, entrepreneurs, workers, associations and the government.
Ms Nazma highlighted that fair prices should be in place where buyers and factories both have equal responsibilities.
Mr Shams Mahmud, former president of DCCI and managing director of Shasha Denims Ltd, highlighted the absence of acknowledgement and participation at the government’s end.
The lack of a uniform programme or a single window and an energy audit are some key challenges in the process.
He also urged for a unified long-term government policy.
Mr Mohammad Hatem, executive president, BKMEA, echoed the issues involving reasonable price, bank-client relationship, long-term investments, workers’ welfare, and most importantly, the government’s policy support.
Mr Faruque Hassan, president, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said, the industry is ready and open for constructive criticisms unless and until it is biased.
He emphasised the importance of more strategic collaboration and better access to technology as skilled workforce.
The event was followed by an intriguing open-floor discussion. Policy-makers, representatives of the private sector, think-tanks, non-government organisations (NGOs) and development partners, experts and journalists participated in the dialogue.
