Energy discussions took center stage in the heart of the textile industry on a late September day in Dhaka, not at a government briefing or power plant. In order to envision a cleaner, sharper, and more competitive future for the industry, Textile Focus and Radiant Alliance Ltd. brought together a unique group of factory owners, sustainability leaders, association executives, and renewable energy specialists at the East Coast Centre.
The roundtable, ‘The Adoption of Renewable Energy in the Textile and Apparel Industry,’ underscored a growing realization: Bangladesh’s manufacturers must shift to greener, more efficient energy to maintain global sourcing leadership.
The global economy depends on the textile industry, we have made great strides in sustainability
Mohammad Monower Hossain, Head of Sustainability at TEAM Group
Textiles and clothing supply over 80% of Bangladesh’s exports and are highly energy-intensive. Despite a national goal of 40% renewable energy by 2041, the current share is below 6%. The industry faces a crucial turning point due to rising energy costs, brand demands, and regulatory shifts.
The tone was established by moderator Mohammad Monower Hossain, Head of Sustainability at TEAM Group, with a succinct statement:
“The use of renewable energy in the textile and related sectors is our focus. The global economy depends on the textile industry, and while we have made great strides in sustainability, we have the greenest factories in the world, excellent HIG Index reporting, and expanding ESG practices the road to renewable energy and complete decarbonization is still challenging. There is a glaring discrepancy between our national goals and those of the EU and big companies. For example, H&M wants to reduce carbon emissions by 65% by 2030 and achieve net zero by 2050, but Bangladesh only wants to use 40% renewable energy by 2041.
The industry is entering a new era where clean energy will define long-term viability.
Mohammad Ashraful Islam, Editor, Textile Focus
“The industry is entering a new era where clean energy will define long-term viability,” said Mohammad Ashraful Islam, Editor of Textile Focus, as he inaugurated the Round Table Talk. He emphasized that the adoption of renewable energy is not just an environmental imperative but also a strategic opportunity for the textile and apparel sector. Highlighting the potential for cost savings, operational efficiency, and enhanced global competitiveness, he described the event as a platform for collective action. Industry leaders, policymakers, and stakeholders gathered to discuss collaborative strategies, financing models, and technological solutions to accelerate the transition toward sustainable energy practices across the sector.
Using renewable energy is essential to remain competitive in a global market that is changing quickly
Masudur Rahim, CEO of Omera Solar
Masudur Rahim, CEO of Omera Solar, provided a practical viewpoint from the standpoint of the solution provider: The topic of today’s discussion is how Bangladesh’s textile and clothing sector, which is one of the biggest energy consumers and the country’s economic backbone, can use renewable energy to remain competitive in a global market that is changing quickly. The industry now has a lot of options, including the possibility to install 100% of the sanctioned load and sell extra power back to the grid, thanks to increased electricity costs, buyer pressure, and new government regulations supporting rooftop solar. Renewable energy is becoming a commercial requirement as well as an environmental choice. The purpose of this conversation is to examine workable ideas and determine how our sector can successfully and seamlessly incorporate renewable energy for long-term sustainability and competitiveness.
To accomplish our sustainability and renewable energy objectives, a single, shared plan is necessary
Mohammad Rashed, Vice President of BKMEA
Mohammad Rashed, Vice President of BKMEA, emphasized the need for a more aggressive government effort on behalf of knitwear makers. He added “This conversation has made it abundantly evident that we already comprehend the main issues, which include knowledge gaps, waste, a shortage of rooftop space, low buyer commitment, inadequate monitoring, and little industry-buyer cooperation. We are also familiar with many of the alternatives, including fair price negotiations with purchasers, cogeneration, and financing possibilities. We don’t have a comprehensive national roadmap that links the dots. Policies get diluted, and significant long-term challenges are eclipsed by short-term ones in the absence of a cohesive framework. In order to determine the status of factories, our firm has started mapping industry data and creating a single database. In order to make sustainable transformation feasible for everyone, not just a select few excellent factories, all stakeholders—factories, associations, purchasers, and the government must work together going ahead, establish long-term solid rules, specify roles, and guarantee fair pricing. To accomplish our sustainability and renewable energy objectives, a single, shared plan is necessary.”
Renewable energy is not just an economic need but also a duty to our environment and future!
AKM Saifur Rahman, Vice President, BGBA
From the standpoint of buyer involvement, AKM Saifur Rahman, Vice President, BGBA, reiterated the urgency: Bangladesh has to move beyond solar and concentrate on renewable energy as a whole since solar cannot solve our problems on its own. Industries only consume 27% of all power; most firms lack the acreage for huge installations, and thousands of tons of garbage remain unutilized as potential energy. Even though more than 230 LEED-certified companies already use 10–50% renewable energy, land limitations, banking and legislative issues, ambiguous net metering, and the challenge of green manufacturers that face sustainability expectations from brands without fair pricing all impede growth. Since renewable energy is not just an economic need but also a duty to our environment and future, we must involve all factories, guarantee clearer laws, draw in secure investment, and develop means to distribute excess energy if we are to achieve true national effect.
I want to stress that adopting renewable energy is now necessary and not optional.
Abdullah Al Mamun, Director of BTMA
Abdullah Al Mamun, Director of BTMA, highlighted the association’s function from the perspective of textile machinery: He stated, “As a representative of the textile industry, I want to stress that adopting renewable energy is now necessary and not optional. With many companies depending on grid supplies and captive generation, the sector is a significant user of power. Despite the availability of solar and other renewable energy sources, there are still issues, especially with smart energy management, co-generation, tri-generation, and storage systems. Adoption might be accelerated by studying patterns in nearby nations like India, where up to 40% of capital investments receive government subsidies. Financing is still a major obstacle. Renewable energy may become feasible and scalable with the help of incentives, awareness campaigns, technical assistance, and collaborations with service providers like Omera Solar. We encourage cooperative projects that provide our association members all-encompassing solutions for effectively implementing sustainable energy while preserving financial sustainability.”
The greatest obstacle to the use of renewable energy in Bangladesh’s textile industry is still funding.
Ehsan Haq, Director, Knittex Industry
The Director of Knittex Industries, Ehsan Haq, outlined the common challenges faced by medium-sized factories: He added, “The greatest obstacle to the use of renewable energy in Bangladesh’s textile industry is still funding. Without financial backing or incentives, many factories are reluctant to engage in solar or other sustainable solutions since they already have obligations. Few purchasers provide a premium price or direct help to offset the upfront expenses, even if certain buyers, especially in the European market, demand adherence to sustainability and carbon footprint criteria. Adoption is further complicated by building designs, rooftop area constraints, and lengthy payback times, particularly for older enterprises. Practical programs like government subsidies, bank-backed financing methods, or contractual incentives from customers are necessary for widespread adoption. Large-scale adoption of renewable energy is unlikely in industries without demonstrable financial feasibility and incentives. In order to make renewable energy financially and environmentally viable in Bangladesh, several issues must be resolved.”
To boost cash flow and promote investment, policy-level incentives like tax reductions, rebates, and expedited asset depreciation are essential.
Mayeesha Mahmud, Director, Cotton Group
Cotton Group, Director Mayeesha Mahmud Stated, “The textile industry in Bangladesh has a strong intention to use renewable energy, but the biggest obstacle is still access, especially when it comes to funding. Although significant progress has been achieved through gradual compliance and improvements, limitations still exist in many long-standing plants that cannot be rebuilt. Low-interest green loans in collaboration with regional banks and international organizations, lease-to-own arrangements with energy service providers, and grouping nearby enterprises together to pool resources, expertise, and expenses are some possible remedies. Additionally, sustainability activities may be strengthened by a partnership with brands. To boost cash flow and promote investment, policy-level incentives like tax reductions, rebates, and expedited asset depreciation are essential. Customer commitment, acknowledging factories as premium suppliers or ensuring capacity, is equally crucial to striking a balance between environmental sustainability and business. In order to draw collaborations and creative solutions, a coordinated strategy including the government, buyers, banks, and other stakeholders is crucial, as is rebuilding Bangladesh’s reputation abroad.”
Sustainability is becoming a more important differentiator in the global garment business than price, quality, or lead time.
Ashna Huq, Director of Incredible Fashion
A trend that the industry is gradually adopting was caught by Ashna Huq, Director of Incredible Fashion: She further added, “Sustainability is becoming a more important differentiator in the global garment business than price, quality, or lead time. Recent laws in Bangladesh, such as the merchant power policy and 100% net metering, enable industries to acquire renewable energy and transfer RECs, making environmental claims auditable in accordance with EU standards. This makes it possible for manufacturers to obtain long-term commitments, assist brands’ climate goals, and perhaps obtain co-financing. The grid’s intermittent nature, storage costs, and the scarcity of solar-friendly land are still major obstacles. In order to grow renewable energy and achieve both financial and sustainability advantages, these issues must be resolved.”
Renewable energy is now essential to the sustainability of our sector as we comply with EU requirements.
Lt Col (Retd.) Hasan Mahmud, Executive Director, Bitopi Group
The strategic funding for Bitopi Group’s 3.5 MWp solar installation was emphasized by Lt Col (Retd.) Hasan Mahmud, Executive Director. He stated, “Only 4% of Bangladesh’s grid is renewable, compared to 30% in nations like India and 99% in Norway. Renewable energy is now essential to the sustainability of our sector as we comply with EU requirements. Our plan to use our 20,000 square meters of vacant rooftop space for solar electricity began seven years ago, but the largest challenge was funding. We eventually teamed with Omera Renewable Energy and used a BILT capital-lease model, in which they constructed, owned, leased, and then handed the system to us, after years of running door to door. The system achieved 100% of our anticipated goals, and we paid nothing up front. The expense was recouped over a five-year period through our power savings. All three of our plants now run entirely on renewable energy, but doing so necessitates an extra, expensive, and offshore investment in I-RECs. However, this experience demonstrates that renewable energy is scalable and financially feasible with the appropriate strategy.”
We successfully commissioned a 1.6-megawatt rooftop solar system last year
Rakib Bin Zaid, Head of Sustainability, Dekko Isho Group
Rakib Bin Zaid, Head of Sustainability at Dekko Isho Group, spoke with GGI and Bestseller about their historic PPA (Power Purchase Agreement): He added, “We successfully commissioned a 1.6-megawatt rooftop solar system last year, which is a major step toward lowering our dependency on conventional power and achieving our environmental goals. This program enhances the legitimacy of our sustainability reporting while also demonstrating our dedication to renewable energy. A sustainability report reflects both our present performance and our long-term objectives, acting as a standard. We provide stakeholders transparency, demonstrate quantifiable progress in lessening our environmental impact, and reaffirm our long-term strategic aim for sustainable economic growth by emphasizing the use of solar energy and other ecologically friendly methods.”
To promote as leader in sustainable clothing production, cooperation between factories, brands, legislators, and financiers is essential.
Mohammad Abdur Rouf, CEO, IN Button Ltd.
“At IN Button Ltd., we recognize that renewable energy is essential for cost efficiency, sustainability, and meeting global market expectations,” said Mohammad Abdur Rouf, CEO of the accessories company. Although solar energy provides a dependable and affordable option with a quick return time, the primary obstacle is still the initial outlay of funds. Adoption may be made possible by models like as lease-to-own, EPC-backed projects, and collaborations with financial institutions. Using renewable energy boosts our competitiveness by lowering operating costs and aligning with buyers’ environmental and net-zero goals. To promote acceptance and establish Bangladesh as a leader in sustainable clothing production, cooperation between factories, brands, legislators, and financiers is essential.”
Adopting renewable energy is crucial for sustainable growth as we advance.
Md. Serajul Hossain, Senior Vice President, IDCOL
In terms of institutional funding, Senior Vice President of IDCOL Md. Serajul Islam discussed what was successful and what is still lacking: He added, “Adopting renewable energy is crucial for sustainable growth as we advance. Financial hurdles can be removed by collaborations with organizations such as the IFC, which can offer funding and shared agreements in core currencies. By taking advantage of these chances, our sector can maintain its competitiveness in the global market while creating a more environmentally friendly future.”
Rooftop solar is very economical, needing almost half the investment of ground-mounted plants.
Mezanur Rahman, COO, Omera Solar
Omera Solar’s COO, Mezanur Rahman, emphasized the scalability issue in the meantime: He added, “Omera Solar has been making solar panels since 2011. It began with tiny home units and has now grown to produce larger panels up to 700 watts for industrial facilities and roofs. Our 70 MW installed capacity produces around 84,000 MWh a year, which is equivalent to a reduction in CO2 emissions. With a payback time of two to five years, solar energy is the most affordable and secure source of electricity in Bangladesh, making it a financially and environmentally viable choice. We provide three implementation models: lease financing over two to five years, followed by ownership transfers; direct investment (CapEx); and EPC investment with discounted rates (OPEX). We also help with funding, operation and maintenance, and project viability. Bangladesh has the capacity to produce over 4,000 MW from rooftop solar alone. Rooftop solar is very economical, needing almost half the investment of ground-mounted plants.”
A Common Goal for a Cleaner Future
The panel concluded with a consensus that renewable energy is Bangladesh’s textile industry’s future lifeline, despite worries ranging from CAPEX to legislative inadequacies. Factories are transitioning from awareness to action. Purchasers are exerting more pressure. Providers of solutions are prepared. Institutions of finance are changing. Furthermore, stakeholders are beginning to view renewable energy as a source of competitiveness, resilience, and global alignment rather than only as a catchphrase for sustainability. Bangladesh’s textile industry is getting ready to power its new chapter with clean energy at its core at the intersection of ambition and need.
