Dev partners, RMG buyers urge Bangladesh to prioritise renewable energy

Global development partners, brands, buyers, and local apparel exporters have urged the government to adopt policies that support renewable energy, especially solar power, to maintain Bangladesh's access to the global RMG market.

The call came from the Bangladesh Climate Action Forum 2024, organised by the Bangladesh Apparel Exchange, at the Radisson Blu Dhaka Water Garden hotel today (10 October).

International brands plan to reduce their carbon emissions by 2030. In Europe, domestic and international policies are shaped by the European Green Deal, which aims to reduce greenhouse gas emissions by at least 55% by 2030 and achieve net-zero emissions by 2050.

Addressing the event as chief guest, Energy Adviser Fouzul Kabir Khan said, "Our renewable energy penetration is very low, only 2%. We want to move it upwards."

Sharing his personal view, the adviser said he is a strong advocate for renewables and had supported it even before it became a popular trend. 

"It is now time to transition to larger systems with greater sustainability capabilities, urging members of the business community to seize this opportunity and get involved, he said.

"This is an interim government focused on reform, and we are not simply continuing with the status quo. Instead, we are taking on a new role, and I hope you will join us on this journey to lead the country forward," he added.

Addressing as a special guest, Chief Adviser's Special Envoy for International Affairs Lutfey Siddiqi said for entrepreneurs and businesses, the way they produce goods is as important as the cost of production; it's not just about producing items at the lowest cost.

"Climate transition is a real risk that we need to be mindful of. We should not treat it as a compliance issue but a proper business strategy issue where we can stand out as the superior standard," he added.

During the panel discussion, Ziaur Rahman, the country manager of H&M for Bangladesh, Pakistan, and Ethiopia, said that the multinational fashion brand aims to reduce carbon emissions by 56% by 2030 and achieve net-zero emissions by 2050. As a major supplier, Bangladesh has a significant role to play in this effort.

However, he noted that Bangladesh lags behind its competitors, producing only 2% of its total energy from renewable sources but has a potential increase to 15%-17%. 

He suggested that one major solution for Bangladesh is to implement rooftop solar systems to increase renewable energy production.

Faisal Rabbi, an energy specialist at the World Bank Group, highlighted various methods of decarbonisation, such as utilising energy-efficient technology and improving energy generation processes. 

Rabbi stressed the need to adopt modern technology to reduce this wastage and emphasised the importance of aligning with a Solar Power Purchase Agreement (SPPA) or Corporate Power Purchase Agreement-based renewable energy usage. 

"Factories must transition away from fossil fuel-based power generation, and the private sector must take the lead in this effort," Rabbi added.

Abdullah Hil Rakib, managing director of TEAM Group and senior vice-president of BGMEA, said, "Decarbonisation is a matter of mindset, not cost, as evidenced by the 229 green factories in Bangladesh, showing it is not purely a financial issue."

He said that significant investments in occupational safety following the Rana Plaza tragedy also paid off through the growth of their business, proving the industry's capacity and capability.

Rakib also called on brands and buyers to account for these costs in their product pricing.

During the opening session, Michael Miller, ambassador and head of the EU delegation to Bangladesh, said that for countries like Bangladesh, one of the most climate-vulnerable countries in the world, every fraction of a degree in global temperature increases matters.

"We have a shared obligation to act. Global gateway aims to mobilise up to 300 billion euros of public and private investments by 2027 through a combination of grants, concessional loans, and guarantees to de-risk investments," he added.

He also said climate action will also be one of the essential elements of the new partnership and cooperation.

Achim Tröster, ambassador of the Federal Republic of Germany and Thijs Woudstra, charge d'affaires of the Embassy of the Kingdom of the Netherlands, also spoke at the event. 

In his welcome address, Mostafiz Uddin, Founder & CEO of Bangladesh Apparel Exchange, said, "Climate action is no longer a burden. For entrepreneurs, it's a business opportunity. This is how I think. For all of you, you all love Bangladesh and want to eliminate poverty and disasters."

He also said that cheap labour is no longer a competitive advantage for Bangladesh.