Context
Bangladesh’s ready-made garment (RMG) sector accounts for more than 80% of the country’s exports and supports nearly 4 million jobs. However, its continued dependence on fossil fuels, rising energy costs and unreliable energy supply increasingly threaten production, investment and long-term business viability. At the same time, climate impacts and growing international sustainability requirements are changing how global brands assess and engage with their supply chains.
The transition to renewable energy and decarbonisation therefore matters across the sector. For the government, it is closely linked to its development agenda, including energy security, climate commitments, economic stability and export growth. For manufacturers, it can improve resilience and protect business competitiveness. For global brands, the transition is linked to meeting their own net-zero and supply-chain decarbonisation commitments and preparing for EU requirements, including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and emerging product-data requirements. These expectations make meaningful stakeholder engagement and collective responsibility increasingly important. For workers, the transition must protect jobs, health, rights and livelihoods while ensuring their voices are included in decision-making.
No single stakeholder can deliver this transition alone. Coordinated action among government, industry, brands, financial institutions, service providers and worker leaders is essential to make Bangladesh’s RMG sector more resilient and competitive while ensuring a fair and inclusive transition aligned with the ILO’s Just Transition principles.
Project Overview
ETI Bangladesh launched the project, “Promoting Just Transition and Environmental Sustainability in the Bangladesh RMG Industry,” in June 2023.
Now in its third phase, running from April 2026 to March 2028, the project builds on policy advocacy with government agencies and ongoing work with factories, brands, business associations, trade union federations and other like-minded organisations. It supports practical factory action, stronger worker voices and coordinated policy and industry responses to accelerate renewable energy transition and decarbonisation, including in response to the ongoing energy crisis.
Goal
To accelerate decarbonisation and the transition to renewable energy in the Bangladesh RMG sector, in line with the ILO just transition principles, by driving commitments for shared responsibilities among key stakeholders and by mainstreaming workers’ voices, enabling collaboration, innovation and inclusivity.
Objectives
- Support brands, manufacturers and business associations to jointly develop, strengthen and begin implementing practical renewable energy and decarbonisation roadmaps.
- Accelerate decarbonisation and renewable energy transition in the RMG sector through policy advocacy with government agencies and key private-sector institutions.
- Strengthen the Worker-led Climate Action Network (Worker CAN) and promote worker-led climate advocacy.
- Bring key RMG stakeholders together to advocate for urgent policy action on the energy crisis and help manufacturers respond by connecting them with renewable energy technologies, financing opportunities, service providers and industry best practices.
Key Project Activities
- Supporting factories and industry associations develop and implement renewable energy and decarbonisation roadmaps;
- Strengthening ETI Bangladesh’s sectoral Multi-stakeholder Working Group on promoting just transition and environmental sustainability in RMG;
- Convening democratic dialogue, consultation and evidence-based policy advocacy with government, industry, brands, workers and other relevant actors;
- Building Worker CAN’s capacity for worker-led advocacy;
- Organising conferences, technical sessions and webinars on renewable energy and decarbonisation;
- Connecting manufacturers with finance and renewable energy service providers; and
- Sharing evidence, lessons and recommendations with stakeholders and the wider public.