A $200 billion opportunity for a greener future in Bangladesh.
In just a few decades, Bangladesh has grown to become the 41st largest economy in the world, with its economy on track to more than double to hit the $1 trillion mark by 2040. Home to a population of over 170 million, the country is currently the fastest-growing consumer market in Asia and projected to become the ninth largest globally by 2030.
By putting sustainable development at the heart of its growth strategy, countries like Bangladesh can focus on meeting the needs of the present without compromising the viability of future generations.
In recognition of the need for sustainable development, Bangladesh has implemented national strategies including the National Sustainable Development Strategy 2010-2021 and National Adaptation Plan (2023 - 2050) to meet the challenges of the country’s economic, social, and environmental sustainability goals.
The country has also formed dedicated government agency units, and adopted the United Nations’ Sustainable Development Goals (SDG), of which it has made significant progress in fields including alleviating poverty and promoting quality education, and already achieved two of its 17 objectives ahead of schedule: taking climate action to reduce CO2 emissions, and ensuring sustainable consumption and production patterns.
“We are committed to continue on the path of our sustainable development where each step of the journey ahead, complements a certain aspect of reducing carbon emission.”
Shayan F Rahman Group CEO of the Beximco Group
Fabric of Society
A major driver of economic growth in Bangladesh has been the ready-made garment (RMG) industry. According to the Bangladesh Garment Manufacturers & Exporters Association (BGMEA), the trade body of apparel manufacturers in Bangladesh, RMG export for FY2021-22 reached $42.61 billion, accounting for over 81% of total exports of Bangladesh.
The sector, however, has traditionally been seen as a major contributor to global warming, producing 1.7 billion tons of CO2 emissions per year, but efforts have been made to reverse the tide.
In 2018, garment stakeholders forged the United Nations Framework Convention on Climate Change Fashion Industry Charter for Climate Action, for which the BGMEA is a signatory, committing to a 30% reduction in greenhouse gas emissions by 2030 and net-zero emissions by 2050.
Sustainability has also been put to the fore at the Beximco Group, the largest business conglomerate in Bangladesh and one of the region’s largest vertically integrated textile and garment companies. The company is a contributor to the Zero Discharge of Hazardous Chemicals Community whose Roadmap to Zero program tackles sustainable chemical management within the fashion industry.
In 2022, Beximco partnered with Spanish recycling technology company Recover to open a new facility in Bangladesh to create a circular industry with recycled fabrics to turn textile waste into premium fibers. Beximco has also collaborated with companies like Jeanologia to modify the conventional dyeing and washing process to minimize usage of chemicals and freshwater.
Powering the Economy
Economic expansion increases energy demand and causes strains on the energy infrastructure, and in 2012 the Sustainable and Renewable Energy Development Authority was created to ensure the energy security of the country.
To help the country achieve its energy needs, the World Bank has committed over $1.8 billion in ongoing support in the country’s energy sector, including a $500 million Electricity Distribution Modernization Program to upgrade and expand the national power transmission system in Bangladesh. In recent years, Bangladesh has made significant progress in increasing access to electricity in remote and underserved areas, with electricity now available for 85% of the population, up from 20% in 2002.
The government’s Ministry of Planning estimates an investment requirement of $6 billion per year until 2041 to help propel growth and meet the demand for energy. At the 2022 United Nations Climate Change Conference (COP27), Information and Broadcasting Minister Dr. Hasan Mahmud announced Bangladesh’s plans to have 40% of the expected total energy consumption to come from renewable sources by 2041.
Helping the country achieve its renewable energy goals, Beximco subsidiary Teesta Solar has recently commenced solar power generation at a renewable energy plant. When fully operational, the plant will have the capacity to generate 200 MW, making it one of the country’s largest solar-based power stations.
To Bangladesh and Beyond
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), together with the Government of Bangladesh, organized the Bangladesh Business Summit in March 2023 with the aim of presenting investment prospects in Bangladesh.
Inaugurated by the Honorable Prime Minister of Bangladesh Sheikh Hasina, the three-day event provided a platform for local business leaders to engage with policymakers and investors and discuss relevant topics such as Energy Security, Circular Economy, and Apparel & Textile in dedicated sessions.
A $200 Billion Opportunity
The potential for climate and green investments in Bangladesh, according to World Bank environmental specialist Monika Kumar, is greater than $200 billion, including in renewable energy, green buildings, and transport infrastructure.
This sustainability focus will allow Bangladesh to mitigate the negative impacts of climate change, reduce poverty and inequality, and provide a high quality of life for its citizens, all of which are crucial for long-term economic stability and to secure a greener future for the country and the world.
“As part of our carbon reduction strategy, we are aligning each and every industry vertical to adapt and develop a more environment friendly approach to business with the intention to become the first conglomerate to reach net zero emission in Bangladesh.”
Shayan F Rahman Group CEO of the Beximco Group
