IFC marks a decade of impact through Partnership for Cleaner Textile Programme in Bangladesh

To bring systemic, positive change to the textile value chain in Bangladesh, IFC's Partnership for Cleaner Textile (PaCT) programme has catalysed transformative change over the last 10 years, contributing to the sector's competitiveness and environmental sustainability.   

Since the inception of the PaCT programme in 2013, IFC has worked with over 450 textile factories in Bangladesh, helping them embrace climate-smart practices, reads a press release.

The initiative has substantially reduced fresh-water consumption by 35 billion liters, enough to meet the annual water needs of over 1.9 million people. It has also curbed 723,617 tonne of carbon emissions per year, equal to removing nearly 160,000 cars from the road annually.

An IFC advisory program—supported by the supported by the Government of Denmark and the Kingdom of Netherlands, — PaCT is spearheaded by IFC and implemented in collaboration with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Over the years, PaCT has been working with leading partners, including VF Corp, PUMA, Levi Strauss & Co, and TESCO.

"Let me stress how pleased we are to see that PaCT has become a market leader in both its scale and comprehensiveness of its activities, especially on advisory support for energy efficiency and renewable energy", said Christian Brix Moller, ambassador of Royal Danish Embassy.

The second-largest exporter in the ready-made garment (RMG) sector, Bangladesh's textile industry is a key contributor to the nation's economic growth and sustainability, providing over four million jobs—54% of them are women—and accounting for 85 percent of the country's export earnings.

"We appreciate the contribution of the PaCT programme by IFC over the past decade. We hope that its impact will continue in the coming decades and our industry will grow at a rapid rate while remaining sustainable and safe," said Miran Ali, Vice President, BGMEA.

The governments of Denmark and Netherlands have been a long-standing partner of Bangladesh in its journey of making the textile and apparel sector more sustainable. The PaCT programme has directly contributed to enabling a positive mindset shift in the Bangladeshi textile industry over the past decade. One of the key achievements has been the launch of Textile Technology Business Centre, all set to become the country's leading knowledge hub for the textile industry.

The next phase of the PaCT program will pivot towards advancing circular practices and decarbonization initiatives to address the industry's carbon footprint. While sustaining industry competitiveness, this strategic shift aims to foster high-value product manufacturing, facilitate market diversification, and mitigate environmental, social, and corporate governance risks.

"As IFC commemorates a decade of impactful collaboration through our PaCT programme, we are committed to fostering sustainable growth within Bangladesh's textile industry. IFC will continue to help the country's ready-made garment sector ascend the global supply chain and meet the demands of a more modern and greener market. The sector's resilience is key to increasing exports and supporting market diversification in Bangladesh," said Martin Holtmann, country manager for Bangladesh, Nepal, and Bhutan, IFC.

"In our textile sector engagement, we prioritize initiatives like PaCT, recognizing sustainability's key role in economic growth. As Bangladesh advances to Middle Income status, leveraging economic complexity becomes crucial for sustainable development. The industry's global ties and diverse operations underscore its importance in driving innovation and job creation, powering the country's economy." Henri Rachid Sfeir, Manager, MAS Asia Upstream & Advisory, IFC.