Bangladesh Gears Up For A Greener Future In Garment Manufacturing

Bangladesh, the world’s second-largest garment exporter, is setting new benchmarks in sustainable manufacturing as it accelerates efforts to decarbonize its economy and reposition itself in a rapidly evolving global textile industry. A new report by Cascale, the global alliance formerly known as the Sustainable Apparel Coalition, outlines how Bangladesh is aligning industrial growth with ambitious environmental and social goals, signaling a significant shift in the country’s apparel roadmap.

Despite persistent challenges, Bangladesh continues to solidify its standing as a manufacturing powerhouse. With over 4,000 garment factories employing more than four million people, the majority of them women, the sector remains a cornerstone of national development, accounting for over 80% of the country’s export earnings. In 2024 alone, ready-made garment (RMG) exports hit US$ 38.48 billion, cementing Bangladesh’s place just behind China on the global stage.

However, the Cascale report highlights that Bangladesh’s ambitions extend far beyond output and exports. The country is striving to lead the global shift toward sustainable apparel production. Under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA)’s “Sustainability Vision 2030,” the RMG sector has pledged to cut greenhouse gas emissions by 30%, source half its materials sustainably, halve groundwater usage, and eliminate hazardous chemical discharges all by 2030. These targets align with the UN Fashion Industry Charter and reflect growing buyer pressure for cleaner supply chains.

Already, Bangladesh is home to more than 240 LEED-certified green garment factories, the highest number in the world with over 500 more in the certification pipeline. Many of these eco-conscious facilities feature solar panels, rainwater harvesting and energy-efficient infrastructure, emitting 40% less carbon than conventional factories. This surge in green manufacturing is supported by international partnerships like the Apparel and Textile Transformation Initiative (ATTI), where Bangladesh is a pilot country alongside Türkiye.

On the energy front, the report shows progress but also outlines pressing challenges. Bangladesh’s factories remain heavily reliant on fossil fuels, particularly natural gas, which constitutes 67% of energy use in the sector, well above the global average. While rooftop solar and energy-efficient systems are growing, policy constraints, limited grid renewables and high borrowing costs are slowing the shift to low-carbon energy. The 2025 draft Renewable Energy Policy aims to address this, targeting a 20% renewable electricity mix by 2030.

From a macroeconomic perspective, Bangladesh posted a GDP of US$ 451 billion in 2024 and is forecast to grow by 3.8% in 2025. This growth has spurred rapid urbanization and a booming e-commerce market projected to reach US$ 8 billion this year, driven by rising incomes, mobile access and digital payments. For the apparel industry, this signals both increased domestic consumption and new market dynamics.

The workforce, a key driver of the RMG sector, is also undergoing transformation. While the country has made significant strides in factory safety and women’s economic participation since the Rana Plaza tragedy in 2013, further gains in wages, unionization and skill development are necessary to support long-term resilience. Programmes in upskilling and health support, championed by BGMEA and development partners, are helping create a more empowered and productive workforce.

Still, significant hurdles remain. The report warns that infrastructure bottlenecks, a reliance on low-value cotton garments, limited trade agreements and a slow green energy transition could threaten competitiveness. As Bangladesh prepares to graduate from Least Developed Country (LDC) status by 2026, the potential loss of tariff-free access to key markets like the EU is another looming challenge. The need for strategic trade diplomacy and investment in product diversification especially into man-made fibre apparel has never been more urgent.

Yet, amid these pressures, Bangladesh’s apparel industry sees opportunity. The report outlines how sustainability leadership can become a market differentiator, helping secure longer contracts and higher margins with environmentally conscious brands. Integration of digital tools, automation and value-added services is also underway, as Bangladesh positions itself not just as a low-cost manufacturer but as a reliable, responsible sourcing destination.

The Cascale report portrays Bangladesh as a nation navigating a complex but hopeful transition from volume to value, from cost to conscience. With continued collaboration between industry, government and international partners, Bangladesh is poised to set a global example of how to stitch sustainability into the very fabric of growth.