Greening the RMG sector

The industrial sector contributes a lot in making the economy strong. The harmful effects of global warming and climate change are intensifying. Many communities are on the verge of extinction. Be that as it may global public awareness regarding the environment is growing. Global public opinion is developing regarding the reduction of greenhouse gas emissions, which are primarily responsible for climate change. As a result, efforts are being made worldwide to build green factories, which will use fewer fossil fuels, reduce greenhouse gas emissions, reduce water wastage and recycle more. As a result, these factories will reduce the damage to the environment, while the production will remain the same. Demand for this specialty has grown significantly as a result of recent corporate scandals. To survive in the international competition, arrangements have been made to set up green factories in the export-oriented industrial sector of Bangladesh, especially in the readymade garment industry. 160 factories in the textile and readymade garment sector of Bangladesh have already been recognized as green factories. There are 400 to 500 more factories in the pipeline. However, the pace of green factory building or transformation is still very slow. The people in the sector feel that the kind of policy support from the government for the new factories involved in greening is not being provided properly.

The main export sector of Bangladesh is the garment industry. Eighty-four percent of the total exports come from garment exports. Again more than 4 million workers are employed in this sector. For these reasons, the ready-made garment sector is very important for our economy. Therefore, our policymakers need to ensure that the main export sector does not lag in any way. To survive international competition, the demands of the international market must be met. The Rana Plaza accident dealt a severe blow to our readymade garments sector. Bangladesh lost many benefits, including the US GSP facility. Since then, Bangladesh has come a long way in improving the working environment of garment factories through joint ventures with domestic and foreign entities. The international organizations that have worked for the development of the working environment in the garment industry of Bangladesh are highly appreciating the working environment of garment factories in Bangladesh. They are trying to apply this ‘Bangladesh model’ in other countries as well. We hope that in the same way a special ‘Bangladesh model’ can be created for the construction of green factories.

If we want to improve the position of Bangladesh’s textiles and readymade garments in the world market, we have to make our factories environment-friendly. For this, we have to take coordinated initiative. Government policy support and patronage should be increased. Massive investment is required for the greening and modernization of factories. Many factories, especially small ones, do not have that capacity. We have to extend a helping hand to these factories.

According to media reports the eco-friendly facilities generally, cost 5 to 20 per cent more than the conventional ones, but the benefits are long term. Overall, the green factories can reduce electricity consumption by 24 to 50 per, water consumption by 40 per cent and carbon emissions by 33 to 39 per cent.

The entrepreneurs consider that the higher the number of such industries in Bangladesh, the less the pressure on environment. Also, the workers will have the opportunity to work in a better environment.

New investments are coming in the garment sector as global demand increases. The country’s garment sector is getting huge work orders. Due to this, despite the uncertainty over uninterrupted power and energy supply, entrepreneurs are coming forward with new investments in this sector. Taking advantage of this opportunity, some big industrial groups want to increase their share in the global RMG export market. To this end, the industrial groups are setting up new factories to increase their production capacity. The minimum cost of setting up a 10-line garment factory in a rented building is at least Tk. 5 crore. 160 big and small companies in the country which are members of Bangladesh Garment Manufacturers and Exporters Association or BGMEA (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have invested around Tk 4,000 crore for setting up knit, woven and denim factories. However, expressing concern over gas supply, the factory owners mentioned that they have not received any specific instructions in this regard. Some new entrepreneurs are investing in setting up new factories. Despite the ongoing energy crisis, everyone is moving to new investments. They hope to be able to handle this crisis by negotiating with buyers.

Bangladesh has celebrated 51 years of independence. During this period, the success of Bangladesh’s garment sector has been repeatedly highlighted nationally and internationally. Although the pace of buying clothes in the world market has slowed down a bit during the Covid-19 pandemic, now it has increased tremendously since then. Even new markets are being created. News of entrepreneurs turning around and a significant increase in export earnings is often published in newspapers.

According to the EPB, in the first six months (July-December) of FY 2021-22, Bangladesh exported garments worth 1.99 billion worldwide. Which is closer to 1 thousand 554 crore 55 lakh 6 thousand dollars than the previous year. According to them, exports and growth have increased by 26 per cent. There is no doubt that the development of the garment sector is desirable for all the people of the country including the workers.

The garment factories need more modern, dynamic, energy efficient and environmentally friendly facilities. The young workers in this sector get a place in so many success stories. They are living a miserable life as before by becoming a cheap labourer of eight thousand taka. There was no increase in quality or wages. Except for a handful of economists, the mainstream economists or experts of the society are as silent about this as ever. The workers who are developing the backbone of the economy through hard work have the responsibility to survive with their families in the current market. Commodity prices are rising uncontrollably.

In the 2021-22 fiscal, exports to the United States increased by 48 per cent to the traditional markets of the United States and the European and Canadian markets by 28 per cent, with the European market growing the most. Due to the global geopolitical situation, the market has expanded along with the increase in purchases. The market has moved to Bangladesh from other places. Orders originally meant for China, Vietnam, Cambodia, Myanmar and Ethiopia are now coming to Bangladesh. China’s order transfers are the highest. America is reducing its economic dependence on China. Owners expect this to continue until the end of the Sino-US Cold War. Until then, their abilities and skills will increase. In addition, the Chinese market has expanded to the markets of Chile, China, Japan, India, Australia, Brazil, Mexico, Turkey, South Africa and Russia. Growth and exports in this unfamiliar or new unfamiliar market have increased at a mathematical rate, which is about 24.28 per cent. Overall, both the owners and the government are hopeful that the situation will continue to improve.

The writer is a columnist and researcher. He can be reached at [email protected]