The RMG sector of the country doesn’t conduct green trade directly. But their indirect green trade is much more impactful for the country, society and the environment
Bangladesh has no time to waste to start its green transition in order to remain competitive in the global market, said the World Bank.
Nora Dihel, senior economist, macroeconomics and fiscal management of the World Bank said it while presenting the keynote at the event titled “World Bank Roundtables on Green Trade in Bangladesh” in the capital on Monday.
She also said that access to environmental goods and services through imports will play a crucial role.
Moreover, the elimination of tariff peaks and non-tariff barriers can help improve access to imported environmental goods and services will be essential.
“This is particularly important as Bangladesh is about to graduate from LDC status and several other countries in the region have made significant progress in deepening their trade relations by signing new trade agreements, such as the EU with Vietnam,” she added.
Promoting and facilitating access to environmental goods and services will play a key role in the adaptation efforts to reduce the harmful effects of production on the environment and reduce the content of CO2 emissions.
Capitalizing on the potential to integrate regional and global value chains in the production of environmental goods and the provision of services is needed, she said.
However, it can prevent India and Bangladesh from benefiting from greener trade and access to environmental technologies.
The keynote also said that Bangladesh has good availability overall, with one notable exception, solid waste management, where significant improvements are needed.
As a panelist, Fazlul Haque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and managing director of Plummy Fashion said that the Bangladesh Bank helped Plummy a lot to become the first green factory of the country.
“Bangladesh Bank should support entrepreneurs in both infrastructure building and machinery importing,” he added.
The RMG sector of the country doesn’t conduct green trade directly. But their indirect green trade is much more impactful for the country, society and the environment.
“Bangladesh currently has 195 LEED-certified green factories. Nowadays, a new investor can’t think of building a factory without going green,” he added.
“We have taken these initiatives to attain a good reputation. We use water more carefully than any other industry. We strictly maintain to use 1.5-litre water per minute at the green factories,” he added.
The green factories also treat wastewater to a drinkable level. They are using 40% less energy, 42% less water and emitting 35% less CO2.
“Establishing green factories is not a charity, we need more policy and financial support from the government,” he added.
Buyers use the green tag to get high prices. But they don’t share it with the manufacturers. So, they have to give fair and ethical prices, he added.
Ahmed Zubaer Mahbub, joint director of the sustainable finance department of the Bangladesh Bank said that they are working to accelerate green trading all over the country.
“In 2014, we advised to disburse 5% of the total loan as green financing and 20% as sustainable loan. In 2015, we suggested utilizing at least 20% of the banks’ CSR for environmental work,” he added.
The central bank initiated a sustainable finance policy in 2020 and green bond in 2022, he added.
Zaidi Sattar, chairman of the PRI, moderated the roundtable session.
The keynote said that by focusing on aspects, Bangladesh can continue to enhance its environmental product offerings and position itself as a leader in sustainable development.
Dr Farhina Ahmed, secretary of the Ministry of Environment, Forest and Climate Change was present as chief guest.
Mashiur Rahman, executive director of the Nordic Chamber of Commerce and Industry (NCCI) and speakers from the private sector, banks and research institutes also spoke at the roundtable.
