Dhaka:Speakers at a discussion in the capital today emphasized the importance of expanding green investment to boost the competitiveness of Bangladesh's ready-made garment (RMG) sector. They highlighted the necessity of increasing the number of environmentally sustainable factories and improving access to finance for small and medium-sized garment manufacturers to ensure sustainable growth.
According to Bangladesh Sangbad Sangstha, the sector requires an estimated investment of US$ 6.6 billion between 2025 and 2029 to support its green transition. The observations were made at a high-level dissemination event titled 'Unlocking Green Finance Pathways for Bangladesh's RMG Sector,' organized by LightCastle Partners and Policy Exchange Bangladesh in Gulshan.
Hasan Khaled Foisal, additional secretary at the Ministry of Finance, attended the event as the chief guest. He underscored the importance of stronger collaboration between the public and private sectors to expand access to sustainable financing aimed at greening the RMG industry.
During the panel discussion, the speakers called for simplifying financing requirements and procedures, introducing government-backed credit guarantees, and strengthening partnerships among the government, private sector, and development partners. They stressed the need to ensure that small and medium-sized factories receive adequate financial and technical support to adopt environmentally sustainable production practices.
The speakers also noted that greater investment in energy efficiency and green production would help the sector address rising energy costs, reduce greenhouse gas emissions, and maintain its competitive position in international markets. They further emphasized that the transition to sustainable production should be inclusive, safeguarding the livelihoods and well-being of women garment workers while ensuring that factories of all sizes can benefit from green financing opportunities.
Shoumik Shahriar, principal business consultant at LightCastle Partners, presented an overview of the sector's green investment financing gap, barriers to accessing finance, and emerging investment opportunities. Other notable speakers included Nuria Lopez, managing director of Zalo Knitting Limited; Molla Karimul Islam Tuhin of City Bank PLC; Nazmul Haque, chief investment officer of Infrastructure Development Company Limited (IDCOL); Shams Mahmud, managing director of Shasha Denims Limited; Taif Hossain of the Delegation of the European Union to Bangladesh; and Tashmeem Muntazir Chowdhury of BRAC Bank PLC.
The event was organized under 'Oporajita Phase 2 Just Transition for Women in the RMG Ecosystem,' supported by the H and M Foundation and COS, with The Asia Foundation serving as the backbone organization. LightCastle Partners is implementing the program under the title 'Bunon 2030' to promote sustainable and inclusive development in the RMG sector.