Lack of access to finance and premium price for green products, inadequate policies, and regulatory measures, and a long payback period have been identified as major obstructions to a transition to sustainable ways in Bangladesh’s readymade garment (RMG) sector. Even LEED-certified factories cannot earn additional revenue as product prices remain the same.
These issues were recently highlighted by experts and participants at the launch of ‘Securing green transition of the textile and readymade garments sector in Bangladesh’ in Dhaka.
The Centre for Policy Dialogue (CPD) and Sweden Sverige jointly launched the program with the objective to help enhance environmentally sustainable and climate-neutral growth in Bangladesh with productive employment opportunities for women and youth.
CPD executive director Dr Fahmida Khatun moderated the program, while chairman of the standing committee on Ministry of Environment, Forest and Climate Change Saber Hossain Chowdhury MP was present as the chief guest.
Fazlul Hoque, managing director of Plummy Fashions Ltd, said the highest platinum-rated green knitwear factory in the world is located in Narayanganj, but he is not getting premium prices from retailers and brands.
Entrepreneurs have invested 30 percent 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 was quoted as saying by Bangladeshi media reports.
“It is nearly impossible to convince the buyers to pay extra two cents for garment items, produced in a green and environment-friendly factory,” Hoque said, adding the 2 percent corporate tax rebate for green factories is not sufficient.
Demanding a green policy, he said the available Green Fund remained untouched due to stringent requirements.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem said the absence of access to green finance loans, especially for medium-category factories, and long payback time are barriers to embrace sustainable manufacturing practices.
