Green industrialisation can play a vital role in garment exporters' competitiveness as the buyers are progressively being drawn to green factories for their commitment towards the environment, a recent study found.
“Retailers prefer to source from green factories, so proper branding is needed to attract buyers,” said the study on developing capacity building framework for green industry in Bangladesh's garment sector.
The foreign affairs and commerce ministries may help on that front by arranging awareness programmes in target markets.
If the green factory owners can negotiate properly, they may get a higher price than others, said the study by the Bangladesh Knitwear Manufacturers and Exporters Association.
But to set up a green factory, financing and technical expertise are major constraints.
The Bangladesh Bank can expand its Green Transformation Fund to make it more affordable and easier to avail. It can also give special training to its concerned officials on the importance of green industry.
Subsequently, the study recommended the government to formulate policy guidance for green industry development comprising the existing national laws, rules and act related to the environment, water, electricity, energy and global standards.
In order to harness the process of ongoing green industrialisation, the government may allow duty-free import of the requisite green technologies and equipment.
Incentives can also be provided to factories that import energy efficient machineries or replace the old machineries with modern ones.
Tax benefits or waivers can be provided to attract foreign direct investment in the arena of green technology in the country's proposed 100 special economic zones.
The government may also create an institution to support green industry development.
The 10 month-long study was funded by Agence Française de Développement. The study findings were presented at a meeting at The Daily Star Centre in Dhaka.
Faruque Hossain, assistant joint secretary to the BKMEA, presented the findings at the event where Shubhashish Bose, commerce secretary, was present.