Who pays for a ‘greener’ t-shirt?

The mindset of consumers in high-income countries is changing. Shoppers now think beyond the price tag. They ask what lies behind the products — how they were made, who made them, and what damage was caused along the way. It is not a full-blown revolution yet, but it is building. And for countries like Bangladesh, where the export economy depends heavily on ready-made garments (RMG), this shift is more than just a passing phase. It is a warning sign.

For years, Bangladesh thrived on being fast, affordable and reliable. But as sustainability moves from the margins to the mainstream, that old model is under pressure. Brands and regulators are setting new rules. Consumers are choosing differently. The ground is shifting under the feet of export industries, and those that do not adapt risk being left behind.

Bangladesh has been a global powerhouse in RMG, the second-largest exporter in the world. The calculation was simple: low labour costs, fast production, vast volumes. Western brands could churn out collections at lightning speed, and Bangladesh delivered. This model worked. It fuelled job growth and female labour force participation, lifted millions out of poverty, and helped the country climb the development ladder. 

But it also had a dark side: factory fires, environmental degradation, and exploitative wages. Conditions improved after tragedies such as Rana Plaza, but the problems have not disappeared — they have simply become harder to ignore. And now the rules are changing slowly, quietly, but undeniably.

More and more shoppers, especially in Europe and North America, are connecting their spending to bigger issues — climate change, waste, and exploitation. Fast fashion was once celebrated. Now it is often condemned for what it is: disposable, polluting, and part of a system that exploits workers far from the people making the purchases. This is not a passing trend. It is showing up in numbers. 

Brands that cannot explain the origins of their clothes are losing trust. Those that offer transparency, ethical sourcing, and lower carbon footprints are gaining loyal customers. And that matters for Bangladesh. For decades, the industry has been built on affordability and scale. But if the market begins to reward sustainability over volume, then the country has serious thinking to do.

Regulators are stepping in as well. The EU's Carbon Border Adjustment Mechanism will make high-carbon imports more expensive. The UK is tightening rules on ethical trade. In the US, imports suspected of being linked to forced labour are being blocked outright. All of this points to the same conclusion: the status quo is no longer enough. Exporters must prove they are clean, ethical, and sustainable — or risk exclusion from the very markets they rely upon.

There is good news. Bangladesh now has more LEED-certified green factories than anywhere else in the world. Some forward-thinking manufacturers are investing in solar energy, wastewater recycling, reduced chemical use, and emissions tracking. This is impressive — but it is still not the norm. For most of the industry, sustainability remains a luxury: something pursued when bills are paid and clients secured.

The reality is that most small and medium-sized factories simply cannot afford the upfront costs of going green. They are already working with tight margins, squeezed by brand demands and volatile markets. Expecting them to make major investments without support is unrealistic. 

That is where government and finance come in. Bangladesh needs policy incentives — grants, tax relief, subsidised green loans. Banks and development agencies must also step up with financing models that work for smaller businesses. At present, many cannot even access the funds required for basic upgrades, let alone major transitions.

Another overlooked piece of the puzzle is the workers. A green economy cannot be built without investing in people. That means training workers not only in their core tasks, but also in sustainability issues — waste reduction, chemical safety, and renewable energy. 

It also means treating them with dignity: fair pay, safe working conditions, and job security. Greenwashing is not just about false recycling claims — it is also about ignoring the human side of sustainability. A truly ethical supply chain puts workers at the centre, not at the margins.

One uncomfortable truth must also be acknowledged: global brands cannot expect ethical, low-carbon products at rock-bottom prices. That equation no longer works. If buyers in London, Berlin or New York want sustainable supply chains, they must go beyond compliance checklists. They need to commit to longer-term contracts, fairer pricing, and genuine partnerships. Otherwise, it will be yet another case of wealthy nations shifting the burden onto poorer ones.

There is, however, an upside. This shift in global consumer habits could open new doors for Bangladesh — if the country is ready to diversify. Think of jute, organic food, pharmaceuticals, or even climate-focused digital services. With smart planning and investment, Bangladesh could position itself as a hub for sustainable exports, not only textiles. The demand is there. Whether it is eco-packaging, ethical farming, or climate-tech solutions, there is a growing global market for green innovation. What is needed is vision and commitment.

One final warning: the transition must be fair. If only the largest factories can afford to go green, the gap between big and small firms will widen. The rural and informal parts of the supply chain — often the most vulnerable — could be left behind entirely. That cannot be allowed. A just transition means ensuring access to finance, training, and markets for all. It means including women, informal workers, and small suppliers in the green future, not excluding them.

The world is changing quietly but quickly. For Bangladesh, this is more than a challenge. It is an opportunity to prove that a country built on affordable exports can also become a global model of ethical, sustainable production. But that will not happen on autopilot. It will require smart policy, international cooperation, bold business decisions, and honest conversations about what we value — and who we are willing to support.

Zubayer Hossen is Programme Director at South Asian Network on Economic Modeling (SANEM). Email: zubayerhossen14@gmail.com 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.