RMG leaders ask for land to speed up transition to renewables 

Industry leaders, sustainability experts, and labour representatives have collectively called on the government to implement decisive policy interventions to accelerate the transition to renewable energy in the RMG sector.

They said apparel exporters are ready to invest in "Solar Zones" if the government provides the land.

During a multi-stakeholder policy dialogue held at a city hotel yesterday, speakers warned that without a rapid shift toward green energy and decarbonisation, Bangladesh risks losing its competitive edge in the face of stringent global regulations and rising energy costs.

The event, titled "Fostering Renewable Energy Transition & Decarbonisation in Bangladesh RMG: Expectations for the New Government," was jointly organised by The Business Standard (TBS), Ethical Trading Initiative (ETI) Bangladesh, and the Worker-led Climate Action Network (Worker CAN). The session was moderated by ETI director Munir Uddin Shamim.

Kamran Sadique, co-chair of the standing committee on decarbonisation at BGMEA, pointed out a major bottleneck: land scarcity.

"In our current vertical factory setups, rooftop solar can only provide about 20% of the required energy. Where is the remaining 80% supposed to come from? We are urging the government to identify 'Solar Zones' on fallow or 'Khas' land. If the state provides the land and the necessary power evacuation infrastructure, credible exporters are willing to invest their own money. We aren't asking for grants; we are asking for the space to innovate," Sadique said.

"The fact that diesel generators enjoy a mere 1% import duty while eco-friendly Energy Storage Systems (ESS) are taxed at over 60% represents a major policy contradiction. By reclassifying ESS as capital machinery and establishing a National Energy Data Repository, the government can provide a transparent view of the industry's actual carbon footprint, reduce the burden of fuel import subsidies, and significantly fast-track the decarbonisation process," he added.

BKMEA Director Imran Kader Turjo said that the government's fiscal policies are currently at odds with its green ambitions.

"Land scarcity is a major hurdle for solar energy, as most manufacturers cannot afford the vast space required for large-scale installations. If the government initiates centralised infrastructure plans – similar to the centralised models seen in China or Taiwan – and removes the high import taxes on solar materials, the RMG industry will be far more capable of contributing to the national energy transition," Turjo added.

"A coordinated ecosystem approach is essential to unlock capital for renewable energy transition and decarbonisation in Bangladesh's RMG sector. While policy momentum is building, from NDC 3.0 to renewable energy targets and progress on merchant power plant policy, financing will depend on a credible, action-oriented transition plan, supported by grid modernisation and blended finance solutions to scale investments," said Syeda Afzalun Nessa, Head of Sustainability at HSBC.

TBS Senior Executive Editor Sharier Khan said, the EU carbon tax is an impending reality. If a 5% tax is added after 2030, the total tax burden on our RMG sector could reach 17%. This will render our industry very uncompetitive.

"The decision to cancel 33 to 34 mature renewable energy projects by the Yunus-led government was fundamentally wrong. Had those projects moved forward, we would already have 1,300MW of clean power; saving us significant money on fuel imports and drastically reducing our carbon emissions," he furthered.

Professor Shahidur Rahman of BRAC University said, "One of the biggest hurdles in our industry's transition is the massive gap in knowledge. It is not enough to simply generate new information; we must ensure its effective dissemination across the entire sector."

"Despite having the willingness to invest in renewable energy, many entrepreneurs are being demotivated by bureaucratic hurdles. The long delays in the grid connectivity process under the net metering policy must be addressed to ensure that investors do not lose their inspiration and momentum halfway through," he added.

ETI executive director Abil Bin Amin said, "Decarbonisation is far more complex than the rhetoric suggests. Over the past four years, we have learned that this transition cannot be viewed solely through a sustainability lens; it requires a deep, multi-layered understanding of the interconnected risks and operational challenges that factories face on the ground."

Representing the government, Deputy Director of the Department of Environment Dilruba Akhter acknowledged the policy gaps but urged industry proactivity.

"While the DoE provides the reporting for international conventions, the drive must come from the industry to utilise existing bilateral mechanisms. We are ready to provide technical support, but we need to see the industry moving toward these opportunities with more vigour," she noted.

Mondiaal FNV's country consultant Md Shahinur Rahman said, "Global brands currently hold the power to demand that suppliers reduce their carbon footprint, yet they fail to offer the 5 to 10-year long-term commitments necessary for us to see a return on these massive investments."

"Since the energy transition is a global political issue, the government must move beyond simple department-level fixes and employ strategic economic diplomacy. We need policy integration that holds brands accountable and ensures that the financial risks of going green are shared, rather than being pushed entirely onto the shoulders of local manufacturers and their workers," Shahinur added.

Presenting the keynote speech, ETI Programme Officer Priyong Sabastini said, to ensure long-term global competitiveness, the government must shift its role from being a mere auditor to an active facilitator. By establishing our own industrial benchmarks and providing state-led technical advisory support, Bangladesh can set its own high standards rather than constantly reacting to haphazard, ad-hoc regulations from external markets.

"The green transition cannot be successful if it is only technical; it must be inclusive. We must integrate our workers as active agents of change rather than passive subjects. This requires a gender-responsive policy that prioritises reskilling, ensuring that the shift to high-tech green energy does not sideline the women who are the backbone of this industry."

A highlight of the event was the unveiling of the ETI-BRAC University case study report, "Scaling what works: Lessons on Green Energy Transition from Bangladesh's RMG sector." The booklet documents 15 practical case studies of renewable energy adoption and energy efficiency measures within Bangladesh's Ready-Made Garment (RMG) sector to showcase successful models for industrial decarbonisation.