The ‘just energy transition’ we need in RMG

Bangladesh's readymade garment (RMG) industry is the powerhouse of the national economy, accounting for nearly 85 percent of export earnings and employing millions, particularly women from vulnerable communities. While it has significantly contributed to poverty reduction, the sector also has a substantial environmental impact, generating about 15.4 percent of the country's total emissions.

The industry now faces a critical juncture. Growing pressure from international buyers, consumers, and stricter regulations, especially from the European Union, demand a shift towards greener and more ethical manufacturing practices. This necessitates a "just energy transition" – a move towards sustainability that is fair, inclusive, and ensures that the transition benefits, rather than harms, the workforce that built the industry.

A "just energy transition" goes beyond simply adopting renewable energy like solar power or installing energy-efficient machinery. It fundamentally requires prioritising the wellbeing and participation of workers. Failing to manage this transition justly could lead to significant challenges: job roles may become obsolete due to new technologies, potentially leading to job losses or changes. Workers, especially women, might lack the necessary skills for emerging green jobs, and temporary income loss during factory upgrades or retraining periods is a real risk. An improperly handled transition could even exacerbate existing issues like heat stress in factories, ultimately leaving behind the very people the industry depends on.

Therefore, the "just" component is crucial. Workers must be seen as partners in progress, not merely costs to be managed. Increasingly, global stakeholders value knowing that products are made sustainably and ethically. Ensuring workers are cared for, empowered, and protected becomes a competitive advantage, not a burden.

Achieving a fair transition requires several interconnected actions. Primarily, investing in people through accessible training and reskilling programmes, especially for women, is crucial to prepare the workforce for new green jobs involving advanced machinery and digital tools. Simultaneously, diversifying beyond traditional garments into areas like technical textiles, recycling, renewable energy manufacturing, and circular models will create varied employment opportunities, particularly for youth and women, enhancing economic resilience. Factory upgrades must encompass both green goals—like clean energy and efficiency—and improved working conditions, ensuring safety and mitigating heat stress, because decent work is integral to the transition. Finally, clear communication about the changes, their rationale, and timelines, coupled with gradual implementation, is essential for ensuring workers understand and adapt smoothly to the evolving landscape.

This transition also presents significant opportunities. Renewable energy sources like rooftop solar, coupled with net metering, can drastically reduce fuel costs and emissions, potentially saving the sector an estimated 1,159 kilotonnes of oil equivalent (KTOE) annually. Energy efficiency measures often yield quick returns on investment. Furthermore, Bangladesh is already a global leader in green garment factories, boasting the highest number of LEED-certified facilities worldwide. New job roles in clean energy installation, maintenance, and green technologies are emerging, offering potential for workforce advancement with proper training.

However, substantial challenges remain. Securing adequate financing for green technologies is a major hurdle. Coordinated policy support is essential, including removing import taxes on green tech, providing financial incentives, and creating affordable credit lines. A clear national roadmap with defined timelines, targets, and collaborative frameworks involving factory owners, government bodies, development partners, and brands is needed.

Crucially, this transformation cannot be shouldered by factory owners alone. International brands and buyers, who benefit significantly from the supply chain, must share the responsibility through financial contributions, technology transfer, and support for workforce development. The government's role is to lead with effective policies, worker protection frameworks, and fostering partnerships.

The RMG sector is a testament to Bangladesh's resilience. Embracing a "just energy transition" allows the nation to lead once more, pioneering a future that is not only sustainable but also built on solidarity, dignity, and inclusivity, ensuring no one is left behind.

The author is a former director of the Bangladesh Garment Manufacturers and Exporters Association