Urgent call for accelerating energy transition in Bangladesh’s RMG sector

Major apparel-importing countries, including the European Union, are set to make the use of sustainable energy mandatory to ensure environmentally friendly production.

As a result, experts have stressed that Bangladesh’s ready-made garments (RMG) sector must act now to increase the use of renewable energy to remain competitive in the global market.

At an event in Dhaka on Sunday, organized by Swisscontact Bangladesh, speakers emphasized the urgent need for energy transition in the RMG sector.

The event was held to launch the ‘InSPIRE: Initiative to Stimulate Private Investment for Resource Efficiency’ project, supported by the Embassy of Sweden, and highlighted the importance of investment and technical support for renewable energy.

Speaking at the event, Jakob Granit, Director General of the Swedish International Development Agency (SIDA), said, “The RMG sector is crucial for Bangladesh’s economy, but to comply with Europe’s strict environmental regulations, it must transition to renewable energy. Without this shift, competing in the global market will become increasingly difficult.”

He further added, “Our goal is to strengthen this sector through sustainable investments, ensuring that the ‘Made in Bangladesh’ label becomes a global symbol of sustainability and quality.”

Kjell Forsberg, Head of Trade, Private Sector, and Financial Instruments at SIDA, said, “Public funding alone cannot drive the green transition in the RMG sector. Private sector investment is necessary, and reducing financial risks is key to encouraging factories to adopt renewable energy solutions.”

Maria Stridsman, Deputy Head of Mission at the Embassy of Sweden, highlighted the economic benefits of energy efficiency, saying, “The cheapest and cleanest energy is the energy saved. If factories can reduce their energy consumption by even 10-20%, it will be a game-changer for both cost savings and sustainability.”

She further noted, “The InSPIRE project will not only promote renewable energy but also support female workers by enhancing their skills in new technologies. Future factories adopting green technology will also receive financial incentives.”

During the event, it was revealed that in FY2023, the RMG sector contributed 10.35% to Bangladesh’s GDP and earned $45 billion in export revenue, marking a 10.27% increase from 2022. However, the sector still has high energy consumption and is responsible for 15.4% of the country’s total greenhouse gas emissions.

Participants in the panel discussion, "Greening Bangladesh’s RMG Sector: From Commitment to Action," included Md. Akhtar Hossain Apurba, Vice President of BKMEA; Md Rezwan Selim, Member of BGMEA’s Support Committee; Md. Arfan Ali, Chairman of Zaytoon Business Solution; Ishtiaque Ahmed, Director of Engineering & Innovation at Solshare; and Rafia Sultana, Sustainability Manager at Kappahl, Deputy Director of Swisscontact Bangladesh Syeda Ishrat Fatema. The discussion highlighted the financial and technical challenges of transitioning the industry to renewable energy.

The InSPIRE project will primarily provide financial and technical assistance to export-oriented factories for energy transition operating in EPZs. Under the project, factories will be required to bear 60-70% of the total investment, and proposals will be invited by July 2025.

At the inauguration event, Swisscontact Bangladesh’s Country Director, Helal Hussain, delivered the welcome speech, while Mohammad Sakib Khaled, Senior Manager - Portfolio Development at Swisscontact Bangladesh, presented the project’s key aspects.