Bangladesh has become a global leader in the ready-made garment (RMG) industry, accounting for over 80% of national exports and employing millions. As the world’s second-largest apparel producer, ensuring energy sustainability in Bangladesh garments sector is now vital to support continued growth and long-term success.
However, this impressive industrial growth comes with a hefty environmental cost — particularly in energy consumption. Most garment factories in Bangladesh still rely on traditional energy sources such as fossil fuels and grid electricity. These energy practices not only inflate operational costs but also contribute significantly to greenhouse gas emissions and environmental degradation.
Energy Sustainability in Garments Sector
In recent years, the conversation around energy sustainability has shifted from optional to essential. Driven by both environmental concerns and economic imperatives, the garment sector in Bangladesh is increasingly exploring sustainable energy solutions. Global buyers and brands are now prioritizing eco-friendly suppliers, and international regulations are becoming stricter on emissions and energy use. In this context, embracing sustainable energy practices is no longer just a trend — it’s a necessity for competitiveness and survival.
This article dives deep into the evolving landscape of energy sustainability in Bangladesh’s garment sector. From the current energy consumption patterns and challenges to innovative renewable energy projects, policy frameworks, and future opportunities — we explore every aspect of how this critical industry is moving toward a greener future.
Whether you’re a manufacturer, policymaker, sustainability advocate, or a curious reader, this comprehensive guide will provide valuable insights into one of the most pressing transformations within Bangladesh’s most vital industry.
The RMG Sector’s Energy Landscape in Bangladesh
Bangladesh’s Ready-Made Garment (RMG) industry is the backbone of its economy — but it is also a significant consumer of energy. Understanding the current energy usage and the challenges associated with it is crucial to realizing why energy sustainability has become a strategic necessity.
Current Energy Consumption Patterns
The RMG sector in Bangladesh is highly energy-intensive. From spinning and dyeing to sewing and finishing, each step of the production process demands a significant amount of electricity and thermal energy.
- Dependence on Fossil Fuels: A substantial portion of factories still operate on diesel generators or natural gas, especially in areas where grid reliability is low. These non-renewable sources not only emit high levels of carbon dioxide but also carry volatile price risks.
- Electricity from National Grid: The national power grid, although improving, remains inconsistent. Frequent load shedding and voltage fluctuations force many factories to install backup systems, increasing both energy costs and carbon emissions.
- Energy Intensity of Operations: Many factories use outdated, energy-inefficient machinery. This leads to high energy consumption per unit of output, inflating production costs and reducing overall efficiency.
Challenges in Energy Management
Despite increasing awareness, several systemic and structural challenges hinder the RMG sector’s transition to energy sustainability:
Infrastructure Limitations
- Many industrial zones are plagued by poor-quality infrastructure — unreliable electricity, lack of access to clean technologies, and outdated grid systems.
- Even when sustainable technologies are available, integration into existing setups can be technically complex and costly.
Financial Constraints
- Transitioning to energy-efficient systems requires significant upfront investment.
- Small and medium-sized factories often lack the access to low-interest financing or sustainability-linked credit facilities.
- Without subsidies or external support, ROI on sustainable investments can appear unattractive in the short term.
Lack of Awareness and Training
- Many factory owners and managers are either unaware of energy-efficient technologies or lack the technical know-how to implement them.
- There is often resistance to change, stemming from concerns about production disruptions or skepticism regarding the actual benefits of sustainable systems.
Regulatory Gaps
- Although national energy policies exist, enforcement and incentives for the industrial sector — particularly in garments — are not uniformly applied or understood.
- Absence of a mandatory benchmarking system makes it difficult for factories to measure and track energy performance consistently.
Initiatives and Innovations Driving Energy Sustainability
Despite the challenges, Bangladesh’s garment industry is making significant strides toward energy sustainability. A combination of private sector innovation, international collaboration, and policy support is fostering a shift toward cleaner, more efficient energy usage. From renewable energy adoption to factory-level innovations, the sector is beginning to turn the corner.
Adoption of Renewable Energy
One of the most transformative developments in the RMG sector’s sustainability journey is the growing adoption of renewable energy sources, particularly solar power.
Solar Energy Implementations
- Rooftop Solar Projects: More and more garment factories are installing rooftop solar panels to generate clean energy and reduce dependency on the grid. This trend is being driven by both cost savings and corporate sustainability goals.
- Greener Garments Initiative: A collaboration between SOLshare and Bestseller aims to equip RMG factories with solar microgrids. This initiative not only reduces emissions but also stabilizes factory operations by offering a reliable energy source.
- Case Study-Pacific Jeans: Based in Chattogram, Pacific Jeans has invested in a 32.70 MW rooftop solar installation, one of the largest in the sector. The system is projected to save 6,458 tonnes of CO₂ annually, setting a benchmark for other manufacturers. This bold move aligns with global climate targets and brand-specific ESG commitments.
Exploring Other Renewable Sources
While solar energy leads the way, some RMG facilities are experimenting with alternative renewable sources:
- Biomass Boilers: Factories are beginning to use rice husk or jute sticks as biofuel for steam generation, reducing reliance on fossil fuels.
- Wind Energy: Still in pilot phases, some coastal factories are testing wind turbines to diversify their energy mix.
These alternatives are especially useful in areas where solar performance is limited due to climatic or infrastructural constraints.
Energy Efficiency Measures
In parallel with renewable energy adoption, many garment factories are investing in technologies and processes to reduce overall energy consumption — a key component of long-term sustainability.
Technological Upgrades
- IoT & Smart Monitoring Systems: Some factories are deploying Internet of Things (IoT) devices to track energy consumption in real-time. This data allows for better decision-making and faster identification of inefficiencies.
- LED Lighting Systems: Replacing fluorescent and incandescent lighting with LEDs has become a quick, cost-effective way to cut electricity use.
- Variable Frequency Drives (VFDs): VFDs are being installed in motors and compressors to optimize energy use according to demand — reducing wastage.
Process Optimization
- Lean Manufacturing Principles: Many factories are adopting lean strategies to minimize waste and optimize resource use, including energy.
- Heat Recovery Systems: Systems are now in place in some dyeing units to capture and reuse waste heat, significantly lowering energy requirements for subsequent processes.
- Building Insulation & Natural Ventilation: Improved factory designs reduce the need for artificial heating and cooling, creating a more energy-efficient and worker-friendly environment.
Policy Framework and Regulatory Support
Policy and regulation play a crucial role in enabling and accelerating the adoption of sustainable energy practices in Bangladesh’s garment sector. While the private sector is increasingly proactive, government support, international partnerships, and compliance standards are essential to scale and sustain this transformation.
Government Initiatives
The Government of Bangladesh has begun laying the groundwork to support a more energy-efficient and environmentally conscious industrial sector — including garments — through a variety of national programs and incentives.
Incentives for Green Factories
- Tax Rebates and Customs Benefits: The government offers tax incentives for garment factories that obtain internationally recognized green certifications (such as LEED by the U.S. Green Building Council).
- Low-Cost Financing Options: Through partnerships with development banks, green finance schemes (e.g., Green Transformation Fund, IDCOL Renewable Energy Program) allow access to loans for installing renewable energy systems and energy-efficient machinery.
Policy Frameworks
- Bangladesh Energy Efficiency and Conservation Master Plan (2015): This plan targets a 15% reduction in primary energy consumption by 2021 (with long-term targets extending to 2030), encouraging industries to adopt cleaner technologies.
- Renewable Energy Policy (2008) & National Energy Policy: These policies aim to achieve 10% power generation from renewable sources — creating a clear incentive for garment factories to transition toward solar and other renewables.
International Collaborations
Global collaborations have been instrumental in shaping energy sustainability in Bangladesh’s RMG sector, offering not only funding but also technology and expertise.
Public-Private Partnerships with Global Buyers
- Leading brands such as H&M, Levi’s, and Bestseller have partnered with Bangladeshi suppliers to co-fund energy efficiency upgrades and renewable energy installations.
- Buyers now include environmental audits and performance benchmarks in supplier selection, pushing factories to invest in sustainable practices.
Support from International Organizations
- Organizations like GIZ (Germany), IFC (World Bank Group), UNIDO, and the Swedish Embassy have initiated programs to help factories reduce their energy use and carbon emissions.
- Programs like PaCT (Partnership for Cleaner Textile) by IFC have helped hundreds of factories lower energy and water usage through technical assistance and investment facilitation.
- Programs like PaCT (Partnership for Cleaner Textile) by IFC have helped hundreds of factories lower energy and water usage through technical assistance and investment facilitation.
Compliance with Global Standards
- Meeting standards such as ISO 50001 (Energy Management Systems) and LEED certification has become a strategic priority for exporters seeking access to environmentally conscious markets in Europe and North America.
- Sustainability reporting and adherence to SDGs (Sustainable Development Goals) have become more common, driven by external accountability and market expectations.
Economic Implications of Energy Sustainability
Transitioning to sustainable energy is not only an environmental imperative — it’s also a strategic economic decision. For Bangladesh’s RMG sector, where cost competitiveness is paramount, sustainable energy adoption has far-reaching financial impacts. From operational savings to enhanced brand appeal, factories embracing energy sustainability are poised for long-term profitability.
Cost Efficiency and ROI
While the upfront investment in energy-efficient systems and renewable energy may seem steep, the long-term returns are substantial.
Reduction in Utility Bills
- Solar energy installations can significantly reduce monthly electricity bills, especially during peak production months.
Factories report up to 30–40% savings on power costs after switching to solar.
- Efficient machinery and smart energy systems reduce power usage per unit of production, directly impacting profit margins.
Fast Payback Periods
- Most energy-efficient upgrades — such as LED lighting, VFDs, and insulation — have a payback period of less than 2 years.
- Solar installations, though costlier upfront, typically break even within 5–7 years, followed by years of essentially free power.
Access to Green Financing
- Factories embracing energy sustainability are better positioned to access green loans, ESG-linked financing, and international development funds, reducing their dependency on traditional high-interest loans.
Market Competitiveness
In an era where sustainability is a buying criterion, energy-efficient practices offer a significant edge.
Preferred by Global Brands
- Buyers increasingly demand compliance with energy and environmental standards.
- Factories with green certifications or demonstrable reductions in emissions are more likely to secure long-term orders from major fashion brands.
Branding and Reputation
- Energy sustainability helps build a positive brand image — both for suppliers and the country.
- Certifications like LEED, ISO 50001, and Higg Index scores serve as marketing tools that can enhance a factory’s global credibility.
Risk Mitigation
Sustainable energy adoption also helps mitigate several operational and financial risks.
Reduced Exposure to Energy Price Volatility
- Relying on renewables shields factories from fluctuating fossil fuel prices and supply shocks.
Improved Operational Continuity
- Energy-efficient factories experience fewer disruptions due to power outages or energy rationing, ensuring on-time delivery — a critical KPI for international buyers.
Regulatory Compliance and Future-Proofing
- As global and national regulations around emissions tighten, early adopters of sustainable energy are less likely to incur penalties or retrofitting costs.
Success Stories: Green Factories in Bangladesh
Bangladesh has become a global leader in green garment manufacturing, with a growing number of factories setting benchmarks in energy sustainability. These success stories not only demonstrate what’s possible but also inspire a broader shift across the industry. Below are some standout examples of how energy efficiency and innovation are being translated into real-world results.
1. Remi Holdings (Beximco Group)
Location: Dhaka
Certification: LEED Platinum
Highlights:
- Incorporates solar power systems, LED lighting, and energy-efficient HVAC systems.
- Uses waste heat recovery to optimize steam generation.
- Reduced carbon emissions by 35% within the first two years of sustainability upgrades.
Remi Holdings exemplifies how large-scale RMG facilities can lead the way in comprehensive energy transformation.
2. Pacific Jeans
Location: Chattogram
Certification: Multiple LEED certifications
Highlights:
- Installed a massive 32.70 MW rooftop solar system, among the largest in South Asia.
- Energy generated reduces annual CO₂ emissions by over 6,000 tonnes.
- Has achieved significant energy savings while maintaining high production output.
This case shows how solar energy can be scaled up efficiently in a high-volume production environment.
3. Tarasima Apparels Ltd.
Location: GazipurCertification: LEED Platinum (87 points) — one of the highest scores globally
Highlights:
- Uses natural daylighting, smart metering systems, and rainwater harvesting to improve sustainability.
- Incorporates automated energy monitoring to track and optimize consumption in real time.
- Tarasima proves that environmental leadership and manufacturing excellence can go hand in hand.
4. Vintage Denim Studio
Location: Savar Certification: LEED Gold
Highlights:
- Uses energy-efficient boilers, steam recovery systems, and low-impact dyeing technologies.
- Focused on worker welfare and eco-conscious design, creating a model for holistic sustainability.
- An example of how medium-sized factories can leverage sustainability for differentiation.
5. Fakir Fashion Ltd.
Location: Narayanganj
Certification: ISO 50001
Highlights:
- Implements energy management systems to maintain detailed energy logs and continuously improve usage efficiency.
- Collaborates with international buyers to co-develop sustainable production processes.
Their structured approach to energy data and continuous improvement highlights the power of smart management.
Impact in Numbers
- Bangladesh currently has over 200 LEED-certified green garment factories, the highest number in the world.
- Of these, more than 50 have received Platinum ratings.
- Energy consumption in these factories has been reduced by up to 40%, with operational costs lowered by 25% or more in some cases.
Future Opportunities and Recommendations
As global supply chains shift toward climate-conscious production, Bangladesh’s garment industry is uniquely positioned to lead — not just as a low-cost producer, but as a sustainability-driven exporter. However, unlocking this potential requires collective action, targeted investment, and forward-thinking policy.
Future Opportunities
Scaling Up Renewable Energy Adoption
- With over 4,000 garment factories across Bangladesh, the potential for rooftop solar is enormous.
- New financial models like power purchase agreements (PPAs) and energy-as-a-service could help remove capital investment barriers and scale adoption quickly.
- Microgrids and shared solar platforms for clusters of smaller factories can enable economies of scale.
Digitalization and Smart Energy Management
- Industry 4.0 tools — like AI-driven energy audits, IoT monitoring, and predictive maintenance — can optimize energy use in real time.
- Centralized energy dashboards can help factory owners and managers identify waste and make informed decisions.
Export Market Leverage
- Sustainability is becoming a requirement for entry into premium markets, especially in Europe and North America.
- Green factories can command higher margins, secure long-term contracts, and access eco-sensitive buyers who prioritize ESG (Environmental, Social, Governance) performance.
Skill Development and Workforce Training
- Investing in energy management training for engineers, floor supervisors, and even operators can unlock hidden efficiencies on the production floor.
- Developing a green skills ecosystem will support long-term innovation.
Key Recommendations
For Policymakers:
- Introduce mandatory energy performance benchmarks for garment factories.
- Offer subsidized green financing, especially for small and mid-sized enterprises (SMEs).
- Improve infrastructure for renewable energy integration — including streamlined net metering and improved grid connectivity.
- Establish a green industrial zone policy to encourage clustering of eco-conscious manufacturers.
For Factory Owners:
- Start with energy audits to identify quick wins (e.g., lighting upgrades, compressed air leak fixes).
- Invest in ISO 50001 and LEED certifications to future-proof operations and attract new buyers.
- Leverage digital solutions to monitor energy consumption and improve operational efficiency.
For International Buyers & Donors:
- Co-fund energy transition projects as part of supplier development programs.
- Recognize and reward sustainability achievements in sourcing decisions.
- Continue supporting industry-wide platforms (like IFC PaCT or UNIDO CleanTech) that promote knowledge-sharing and innovation.
A Sustainable Loop
- By aligning business goals with sustainability outcomes, Bangladesh’s garment sector can enter a positive feedback loop: lower costs → higher efficiency → stronger buyer demand → more investment → deeper sustainability. This shift isn’t just aspirational — it’s already underway.
Conclusion: Powering the Future of Garments Sustainably
Bangladesh’s ready-made garment sector stands at a critical crossroads. Once celebrated primarily for its low costs, it is now emerging as a global leader in sustainable manufacturing — and energy sustainability lies at the heart of that transformation.
From rooftop solar installations and high-efficiency machinery to smart energy management and green certifications, garment factories across the country are proving that sustainability and competitiveness can go hand in hand. These changes are not just improving energy efficiency — they’re reshaping the sector’s identity, enabling it to meet rising global expectations, secure long-term buyer relationships, and build resilience in an increasingly uncertain energy and climate landscape.
But the journey doesn’t end here. To fully realize the promise of a greener future, collaboration across industry, government, and global partners is essential. With continued investment, training, policy alignment, and innovation, Bangladesh has the opportunity not just to participate in the future of sustainable fashion — but to lead it.
Frequently Asked Questions (FAQs)
1. Why is energy sustainability important for Bangladesh’s garment industry?
Energy sustainability helps reduce operational costs, lowers environmental impact, ensures compliance with global buyer standards, and strengthens the industry’s long-term competitiveness.
2. What are the common sources of sustainable energy used in the garment sector?
The most commonly used sources are solar energy (rooftop systems) and biomass. Some factories are also exploring wind energy and microgrids.
3. How many green garment factories are there in Bangladesh?
Bangladesh currently has over 200 LEED-certified green garment factories, the highest number in the world, with more than 50 rated at the platinum level.
4. What support is available for factories to transition to sustainable energy?
Support includes government incentives, green financing from development banks, international donor-funded programs, and technical assistance from sustainability initiatives.
5. How does energy efficiency impact profitability?
Energy-efficient operations reduce utility costs, improve productivity, and increase appeal to premium buyers — leading to better margins and sustainable growth.
6. Can smaller factories also benefit from energy sustainability?
Absolutely. Small and medium enterprises can start with low-cost interventions (like LED lighting and insulation) and tap into shared solar platforms or green loans designed for SMEs.
7. What certifications are recognized for sustainable energy practices in garments?
Common certifications include LEED, ISO 50001 (Energy Management Systems), and Higg Index scores that assess environmental performance.
Written by: Israt Jahan
