The 3rd Policy Dialogue within the Sustainable Fashion Platform by Sweden has been held in Dhaka. The event focused on scaling up the Sweden-Bangladesh partnership on renewable energy linked to the RMG-sector.
Swedish Ambassador to Bangladesh Alexandra Berg von Linde hosted the dialogue and State Minister, Ministry of Power, Energy and Mineral Resources Nasrul Hamid MP attended as the chief guest.
During the event organised on Wednesday, the Swedish Minister of Foreign Trade and International Development Cooperation, Johan Forssell, made digital introductory remarks, reads a presss release
The minister underlined, “The RMG sector in Bangladesh is of high strategic and economic importance for both of our countries” and that Sweden was ready to support and partner up with Bangladesh in the green transition of the RMG-sector.”
He also spoke of the long and friendly relationship between Sweden and Bangladesh and how the area of sustainability would be a central element in the relations going forward.
Minister Forssell recently visited Bangladesh together with Her Royal Highness, Crown Princess Victoria of Sweden, and the green and digital transition was one of the overarching themes of the visit.
During his visit, the Minister visited a factory to observe the progress on transitioning to green and resource efficient production technologies within the RMG-sector.
In her speech on behalf of Team Sweden, Alexandra Berg von Linde, Ambassador of Sweden to Bangladesh said, “We see a great potential for Sweden and Bangladesh to cooperate within the area of renewable energy and in identifying opportunities, green solutions, and sustainable financing mechanisms to increase availability of renewable energy for the RMG industry.”
State Minister, Ministry of Power, Energy and Mineral Resources Nasrul Hamid emphasised, “Ensuring sustainability and decarbonisation in the apparel industry has become an existential issue for Bangladesh.
“In times such as these, we need to work together in bringing solutions and working proactively, rather reactively.”
Representing the European Union, Ambassador of the European Union to Bangladesh Charles Whiteley highlighted, “Our EU policies, both internal and external, are guided by the European Green Deal and the EU Climate Law.
“In particular the recent EU Due Diligence Directive is of high importance to the Bangladeshi RMG-sector and in the context of Bangladesh's impending 2026 LDC graduation. The Directive stipulates that companies exporting to the EU will need to carefully consider and address human rights and environmental standards on their operations and value chains.”
The high-level Policy Dialogue focused specifically on the establishment of Corporate Power Purchasing Agreements (CPPAs).
The Swedish RMG-brands associated with the Sustainable Fashion Platform, H&M Group, Ikea, and Lindex, made a joint presentation about the topic. The brand’s presentation illustrated the importance of CPPAs for the green transition and continued competitiveness of the RMG-sector in Bangladesh.
Md Mahbubur Rahman, Chairman of Bangladesh Power Development Board (BPDB) and Abdullah Hil Rakib, Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) attended as Special Guests.
The Sustainable Fashion Platform is a collaboration between the Embassy of Sweden in Bangladesh, Business Sweden, the Swedish RMG-brands H&M Group, IKEA, and Lindex, the Nordic Chamber of Commerce and Industry (NCCI), the Sweden-Bangladesh Business Council (SBBC), and the Swedish Energy Agency (SEA).
The purpose is to coordinate Swedish efforts on sustainability within the RMG-sector in Bangladesh under one umbrella. This Policy Dialogue, which aims to continue to strengthen the sustainable partnership between Sweden and Bangladesh, was organised as a part of the initiative.
Corporate power purchasing agreements
Corporate Power Purchase Agreements (CPPAs) is a strategic, contractual solution for corporate entities to procure electricity from external renewable energy sources.
CPPAs are a promising mechanism for corporate actors to procure renewable energy and meet sustainability goals, while mitigating other long-term risks in the procurement of grid electricity.
The agreements allow corporations to procure renewable energy directly from producers, over a specified period of time and at a fixed price. Furthermore, CPPAs offer companies the ability to credibly specify where and how the energy used in their supply chains is produced (traceability), increasing their ability to comply with international regulations.
Strategic collaborations like CPPAs on renewable energy in the RMG-sector has the potential to make Bangladesh more business competitive globally – and at the same time respond to for instance EU-legislations on environmental standards and due diligence.
Hence, enabling a CPPAs framework to increase availability of renewable energy for the RMG and textile industry can be a catalyst for sectoral growth.
