BKMEA urges faster energy transition to sustain RMG industry

Bangladesh’s garment and textile industry must accelerate the adoption of renewable energy and decarbonisation to protect export markets and ensure long-term competitiveness, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) leaders said on Wednesday.

They made the call at the “Rapid Energy Transition Conference: Powering Security, Sustainability and Growth in Bangladesh RMG”, jointly organised by BKMEA and Ethical Trading Initiative (ETI) Bangladesh.

BKMEA President Mohammad Hatem urged manufacturers to make carbon reduction part of factory planning and take advantage of emerging policy and financing opportunities to expand renewable energy.

“Carbon reduction needs to be part of every factory’s planning. Government initiatives and financing opportunities are creating scope for renewable-energy expansion. We need to use these opportunities and work together to prepare our industry for the changes ahead,” he said.

Hatem highlighted the potential for rooftop solar installations, financing initiatives from Bangladesh Bank and commercial banks, and BKMEA’s efforts to simplify VAT and tax arrangements related to solar projects.

He also called for stronger factory-level planning ahead of Bangladesh’s LDC graduation and evolving European Union requirements, as well as better coordination with government agencies over permissions and approvals.

BKMEA Director and Southern Knitwear Managing Director Eng Imran Kader Turjo warned that failure to meet changing market expectations could jeopardise export relationships built over many years.

“It has taken us many years to establish Europe as a major export market. If we cannot meet its evolving requirements, developing another market of that scale will also take many years,” he said.

He said early progress in decarbonisation and renewable energy could also give Bangladesh an advantage over competing sourcing countries such as India and Pakistan.

Other BKMEA leaders also stressed the need for energy efficiency, energy security, reduced gas waste and greater use of solar power as part of long-term business planning.

BKMEA Director and Fatullah Dyeing & Calendaring Mills Director Minhazul Hoque said sustainability requirements were increasingly becoming issues of business competitiveness.

“Owners and top management need to be part of that preparation,” he said, highlighting emerging requirements related to Digital Product Passports and the Corporate Sustainability Due Diligence Directive.

ETI Bangladesh Executive Director Abil Bin Amin said the current energy pressures also presented an opportunity to strengthen the industry.

“Gradually reducing fossil-fuel dependence and increasing renewable energy can become a business strength and a selling point for Bangladesh’s RMG industry,” he said.

Speakers said renewable energy and energy efficiency could help address immediate energy supply and cost pressures while supporting the industry’s broader decarbonisation efforts.

Energypac Group Director Md Nurul Aktar called for combining renewable-energy investment with efficiency improvements and changes in everyday workplace practices.

He proposed factory-level switch-off campaigns during breaks and idle periods, floor-level energy champions, daily targets and section-wise metering, alongside efficient machinery, rooftop solar and properly assessed battery storage.

ETI Bangladesh Director (Programme, Evidence and Learning) Munir Uddin Shamim said workers could play a major role in identifying energy waste and making energy-saving practices part of daily factory operations.

The conference featured two working sessions focusing on the urgency of the energy transition and available financing and technology pathways.

Participants highlighted management commitment, sound feasibility assessments, access to finance and continuous monitoring as key to successful renewable-energy projects.

They also raised concerns over financing delays, approval bottlenecks and gaps between projected and actual solar performance.

The conference recommended incorporating decarbonisation and energy efficiency into long-term business planning, speeding up green financing approvals and disbursement, simplifying net-metering approvals, exploring cluster-based renewable-energy solutions for SME factories and involving workers in energy-saving initiatives.

Closing the conference, Hoque called for financing barriers to be addressed and smaller manufacturers to be included in the energy transition.

“Renewable energy and decarbonisation are becoming necessary for the industry’s long-term survival. Manufacturers cannot carry the responsibility alone,” he said.

He urged factory representatives to take the discussions to their owners and management and turn them into practical investment and implementation plans.