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DHAKA – The Danish Government has committed US$3.2m to support decarbonisation efforts in Bangladesh’s ready-made garment (RMG) industry. The money, to be channelled via the Danish International Development Agency (DANIDA), will support the International Finance Corporation’s Partnership for Cleaner Textile (PaCT) programme.

The PaCT programme works with stakeholders, including five global apparel brands, 381 RMG factories, industry associations, the Bangladesh government, financial institutions, and technology vendors on water-saving and energy efficiency programmes in Bangladesh’s RMG sector.

Said H.E. Danish ambassador to Bangladesh, Winnie Estrup Petersen: “The latest UN IPCC report on climate change has reminded us once again to take climate action now to keep the global average temperature to well below 2oC. The fashion industry alone contributes around 10 percent of global emissions. PaCT is supporting cleaner production and green growth in the RMG sector towards a sustainable Bangladesh.”

German multinational Puma is one of the brands which uses PaCT’s advisory services. Veronique Rochet, senior head of sustainability at Puma, said: “At Puma, we are committed to climate action in alignment with the UN’s Sustainable Development Goals and Science Based Target Initiative. We are not only reducing the carbon footprint from our own operations but more importantly also from our supply chain. As Bangladesh is an important sourcing market for us, the PaCT Program helps our supplier factories to optimize their resource consumption and minimize their environmental impact.”

PaCT is also expanding its activities through a grant agreement with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to support strengthening the sector’s backward linkages and diversifying products to boost exports. 

“The Bangladesh RMG industry needs to find new ways to conduct business to become more resilient and adapt to shifting global demands. Fibre diversification, online marketplace, and a post-COVID sustainable roadmap for Bangladesh’s RMG industry are very pertinent topics for research at this juncture. We are grateful to IFC for their support in conducting this research which will help the industry to formulate its strategy,” said Faruque Hassan, president, BGMEA.

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