BGMEA, GIZ sign Bangladesh RMG transition deal

DHAKA – Bangladesh’s Garment Manufacturers and Exporters Association (BGMEA) has signed a deal with German development agency GIZ to support sustainability in the country’s ready-made garment sector.

The memorandum of understanding (MoU) will run from May 2026 to February 2028. It is the first formal MoU between the two organisations focused on development of Bangladesh’s apparel industry.

The agreement was signed at the BGMEA Complex in Uttara by BGMEA president Mahmud Hasan Khan and Gundolf Klaehn on behalf of GIZ Cluster Coordinator Thomas Rolf. Senior representatives from BGMEA and GIZ Bangladesh also attended the ceremony.

Under the MoU, the two organisations will work with the Ministry of Commerce, Export Promotion Bureau and Department of Environment on technical initiatives designed to align Bangladesh’s garment sector with international sustainability requirements and climate commitments.

A key focus will be the energy transition of the sector. Programmes including Energy Efficiency for Development, Technical and Vocational Education and Training for Renewable Energy, and the Project Development Programme are expected to support energy efficiency improvements and renewable energy adoption in garment factories.

The partnership will also focus on preparing factories for new European market requirements, including supply chain due diligence, traceability, circularity and decarbonisation. These issues are becoming increasingly important for Bangladesh as major export markets tighten rules on product transparency, environmental performance and corporate accountability.

BGMEA said the cooperation would support the sector’s long-term competitiveness by strengthening environmental performance and helping factories respond to buyer expectations on responsible manufacturing.

“This partnership will serve as a milestone in establishing the Bangladesh garment industry as a responsible and eco-friendly global hub,” BGMEA president Mahmud Hasan Khan said.

The agreement comes as Bangladesh’s apparel sector faces pressure to maintain its position as a major global sourcing hub while adapting to higher compliance standards, rising energy costs and growing scrutiny of carbon emissions.

Bangladesh has promoted its progress on green manufacturing in recent years, including the growth of LEED-certified factories and industry commitments on greenhouse gas reductions. BGMEA says its sustainability agenda includes a target of 30 per cent GHG emission reductions by 2030 under the Fashion Industry Charter for Climate Action.

However, the sector also faces structural challenges in scaling renewable energy, improving factory-level data systems and adapting to new due diligence requirements in export markets.

GIZ’s existing work in Bangladesh includes energy efficiency programmes which advise public and private stakeholders on reducing electricity consumption, supporting energy audits and developing databases to analyse audit results.

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