Apparel industry must be efficient as energy now too expensive to waste: Experts

Industry owners are unlikely to sleep soundly as they are receiving less gas than they did three years ago despite a significant price increase, said Ijaz Hossain, an energy expert and former Buet professor.

He said industries consumed 166 BCF (billion cubic feet) of gas in the fiscal 2023-24, a decline compared to the previous three years. "Just imagine!" he exclaimed, questioning whether industrial capacity has shrunk or if energy efficiency has improved.

Regardless, Hossain said, "Energy is now too expensive to waste."

He made these remarks at a roundtable titled "Energy efficiency towards carbon neutrality for the textile and apparel industry of Bangladesh," held at The Business Standard office in Dhaka yesterday.

The event, jointly organised by Solidaridad, TBS, Bangladesh University of Engineering and Technology (Buet), and ESTex, was moderated by TBS Deputy Editor Sajjadur Rahman. Experts, academics, and industry leaders attended the session, where Hossain highlighted that proper housekeeping alone could help industries save up to 10% of their energy consumption.

Speakers said Bangladesh, a global hub for fashion products, must lower its carbon footprint to stay competitive and sustainable to meet the upcoming regulations of the European Union. Experts advocate for life cycle assessments of energy, water, and chemical use in production, alongside science-based targets for carbon reduction.

"We have the opportunity to go for energy efficiency as there are many efficient technologies at the global markets and at the same time awareness needed to reduce energy consumptions," said Hossain.

However, businesses said while adopting energy-efficient technologies holds promise, factories in Bangladesh face challenges in reducing operating costs due to inconsistent energy quality, which diminishes the effectiveness of these advanced machines. This issue is further aggravated by the high maintenance costs of such equipment, placing additional financial strain on entrepreneurs, according to industry leaders and energy experts.

Shams Mahmud, managing director of Shasha Denims Ltd, said there is a severe disconnect between government policies and the realities of the industry. 

"We are using energy-efficient generators and other technologies, but due to inconsistent power supply, the lifespan of these efficient technologies has reduced from 50 years to just two years," said Shams, also a former president of the Dhaka Chamber of Commerce and Industry.

He said they are using some of the best technologies in the world and making these investments to ensure sustainable energy. For instance, he said, "My father built a factory for Tk60 crore, but to expand the same production capacity, it now costs Tk400 crore."

He noted that even importing energy-saving fans, as discussed today, involves significant hassle. Often, importing energy-efficient machines leads to accusations of misdeclaration, resulting in penalties as high as 200%.

The former DCCI president also said the Ministry of Environment, Forest, and Climate Change, has played no role in encouraging the use of eco-friendly technologies. "The problems we are highlighting should have been addressed by them (ministry)," he said.

To boost renewable energy adoption and technical capacity, banks need to provide low-interest loans on easy terms. However, Shams lamented, "Our banks are currently incapable of offering low-interest loans. So, where will we get the funds? How can we adopt these technologies with loans at a 15% interest rate?"

He also criticised the government's policies, saying, "We often see goals for zero carbon emissions in policy documents, but there's no focus on mitigation or adaptation measures." 

Azizur R Chowdhury, managing director of JM Fabrics and a director of Bangladesh Textile Mills Association, said that the energy consumption across the textile value chain for producing a garment is as follows: up to 35% is used in spinning, 25% in knitting or weaving, 40% in dyeing, and 5-7% in garment sewing.

"In the textile industry, we have ample rooftop space, which we are using to install solar panels. Currently, 25-30% of our power comes from solar energy. However, there are significant duties on solar components — 25% on solar panels, 37% on inverters, and 58% on solar structures. These high duties feel like a discouragement from the government," he said.

Pointing out the gas supply issues, Chowdhury said, "When the gas price rose from Tk15 to Tk30, we demanded uninterrupted gas supply with consistent pressure. But now we're not getting full-pressure of gas."

He highlighted a risky trend where many entrepreneurs are using cylindered gas in factories due to inadequate supply. "It's dangerous, but we have no choice but to keep our operations running. One cylinder runs out, and another is connected. We know this is illegal, but we're forced into it because of the lack of proper gas supply."

Chowdhury lamented the absence of a clear policy, saying, "We're caught like a sandwich, with no direction or solution in sight."

Selim Reza Hasan, country manager of Solidaridad, said Bangladesh's textile and apparel sector is becoming increasingly important not only for the country's economy but also as a major supplier of fashion products to the global market. 

Energy, chemical and water use efficiency are inevitable for the circularity and driving towards "Net Zero" — meeting the environmental sustainability regulations of the European Union. 

"Improving energy efficiency is the key pathway for the industry towards reduction of water and carbon footprints. Bangladesh, as the global hub for manufacturing of the fashion products, needs to develop a roadmap to lower the carbon footprint from the industry for sustainability and to remain competitive in the global market," he said.

Hasan also said, "It is important that we undertake a life cycle assessment of the energy, water and chemical consumption in the production processes, and set science-based target initiatives for reduction of carbon footprint from the supply chain."

Professor Mohidus Samad Khan of Buet and a senior fellow of ESTex Foundation, said a survey was conducted to gather insights from industry stakeholders to develop and validate energy policy recommendations for the textile and apparel sector.

According to the findings, 66% of production industry representatives emphasised that energy efficiency and renewable energy are critical for the sector's long-term sustainability.

The survey also revealed key barriers hindering the adoption of energy-efficient practices. 37% of respondents identified a lack of awareness as the primary obstacle, 26% cited insufficient funding, and 16% pointed to regulatory constraints as major challenges. Professor Khan underscored these insights as vital for shaping targeted energy policies to support the industry's growth and sustainability.

He said a significant number of respondents indicated that their organization lacks specific energy efficiency targets.

Energy expert Yameen Farook said, for the 20-25 years he has been listening to the issue of quality energy supply and efficiency, but no improvement has been made.

Farook said factories need to be rated with a star marking system based on their efficiency. Those performing well should be provided with lower-cost energy, tax relief from the NBR, and other incentives.

"Factories with lower efficiency and those with higher efficiency cannot be charged the same rate for their bills," he said.

Mohammad Shah Alam, DGM of Epyllion Group, said most of the factories are complying with all requirements of social and environmental compliance, but there is no difference between most compliant and non-compliant factories in terms of benefits from buyers and government.

Md Ziaul Haque, director of the Department of Environment, SM Monirul Islam, deputy CEO of Infrastructure Development Company, Abul Kalam Azad, manager of Just Energy Transition of ActionAid Bangladesh, Md Abdullah Al Mamun, assistant director of SREDA, Sarwar Zahan, an energy expert, Sadia Raisa Khan, adviser and country representative of GIZ Bangladesh, Shajedul Islam Maruf, DGM of Beximco Limited (Textile), Kowshick Sen, manager of Eurocentra Bangladesh, Ahamed Imtiaz, managing director of Viola Properties, and Abdullah Yousuf Khan of Solidaridad also spoke on the occasion.