Garment sector far off renewable energy target

Local garment factories remain far from meeting clean energy consumption targets, held back by high renewable energy costs, limited rooftop space and policy bottlenecks that are slowing adoption across the sector, according to a new study.

The findings come as global buyers tighten sustainability requirements and increase pressure on exporters to cut emissions across supply chains under the EU Corporate Sustainability Due Diligence Directive (CSDDD).

The directive, which came into effect last year, requires garment factories in Bangladesh to generate 35 percent of their power from renewable energy sources by 2035 for smooth Western exports.

On the ground, however, just 3 percent of electricity used by garment factories currently comes from renewable sources, according to the study.

It was prepared by Mapped in Bangladesh (MiB) of the Centre for Entrepreneurship Development (CED) at BRAC University after surveying 878 factories in Gazipur and Narayanganj.

The findings, presented at an event at Sheraton Dhaka yesterday, show that the apparel sector remains heavily dependent on conventional energy despite the 2035 deadline.

It found that 61.5 percent of energy use comes from the national grid and 35.5 percent from captive generation.

A large chunk of respondents, 88 percent, cited high installation costs as a barrier to renewable energy adoption. Another 42 percent pointed to high maintenance costs.

Some 28 percent said a lack of awareness was a factor, while 16 percent blamed unfavourable policies. A further 14 percent cited limited space in smaller factories.

The findings were presented by Md Faizul Islam, senior programme manager, and ANM Ata Ullah, lead stakeholder engagement and collaboration specialist.

The study found that renewable energy adoption is significantly lower in Narayanganj at 0.9 percent compared with 3.6 percent in Gazipur.

The study estimated that total floor space across the surveyed factories stands at 155,065,398 square feet, with about 9,073,089 square feet available for solar panel installation.

It noted that one square foot of solar panel can produce around 1.10 kWh per month. Based on available space, maximum potential electricity generation is estimated at 69,862,278.5 kWh per month, which could reduce carbon emissions by about 9.84 percent, according to the study.

The authors said Bangladesh is moving towards a more ambitious renewable energy transition through the Renewable Energy Policy 2025 and updated climate commitments, including increased renewable energy generation and wider promotion of rooftop solar systems in industrial facilities.

In this context, they said the ready-made garment sector is central to this transition, given its high electricity consumption and importance to export earnings and industrial growth.

Around 80 percent of factories receive less than 1 percent of their total energy from renewable sources, while only 5 percent source more than 10 percent.

According to the report, larger factories show greater diversification in energy use, while small and micro factories remain heavily dependent on grid electricity. In these smaller units, renewable energy use remains below 1 percent.

The surveyed factories consume about 70.2 million kWh of electricity each month, producing an estimated 46.1 million kilograms of carbon dioxide emissions.

Although rooftop solar potential exists, physical constraints remain significant. Only about 5.8 percent of total floor space is suitable for solar installation, and full use of available rooftop space would meet only about 14 percent of total energy demand under current efficiency levels.

The study recommended establishing an RMG green finance window for solar and energy-efficient technologies, introducing energy grading for industrial equipment, and developing factory-level energy and carbon reporting systems. It also suggested using carbon credits and carbon exchanges to finance verified emission reductions.

Other recommendations included forming an RMG energy transition taskforce and creating an independent monitoring body to track progress.

The authors also called for decarbonising the national grid, expanding rooftop solar, enabling offsite renewable procurement, and promoting energy-efficient machinery. They further suggested reducing diesel dependency through hybrid systems, batteries and more efficient captive generation.

Vidiya Amrit Khan, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said 4.75 percent of electricity is currently generated from renewable sources.

She said reaching the 35 percent target by 2035 would not be difficult if government policy support is included in the next budget.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said duty should be waived on the import of solar panels and other equipment to speed up renewable energy installation.