A recent study warns that Bangladesh could lose 4.8 per cent of its working hours to heat stress by 2030 unless timely adaptation measures are implemented. The research, titled Just Climate Transitions in Bangladesh, also projects that rising sea levels may submerge approximately 17 per cent of the country’s land and displace around 20 million people by 2050.
Conducted by the international consulting firm FSG with support from the H&M Foundation and Laudes Foundation, the study highlights the urgent need for Bangladesh to transition to renewable energy sources. Failure to do so could result in a loss of competitiveness in the global garment trade, as international retailers may reduce their orders from factories using fossil fuels.
The findings were presented during a discussion hosted by the Bangladesh Apparel Exchange at The Westin hotel in Dhaka, featuring insights from study authors Sujata Rathi and Akshay Kohli, both associated with FSG. They emphasized the challenges facing the garment and construction sectors, which are vital to the nation’s economy, employing 12 million people and contributing 34 per cent to the country’s GDP.
Despite the garment industry’s importance, it is also responsible for 15 per cent of Bangladesh’s greenhouse gas emissions, a figure expected to rise by 5 per cent by 2030. The garment and construction sectors, including brickmaking and cement production, account for 74 per cent of the industrial sector’s GDP contributions and nearly half of the country’s emissions.
Participants in the discussion expressed concerns over the slow progress in adopting renewable energy in garment production, which remains below 2 per cent, compared to advancements made by competing countries. The forum included garment exporters, international retailers, climate experts, government officials, and labor representatives.
The study highlights the precarious situation of industrial workers, 90 per cent of whom are informally employed, earning an average monthly wage of Tk 13,568 (approximately EUR 140), which is about 40 per cent below the living wage. With only 22 per cent of the population having access to any form of social protection, the study calls for increased inclusion of workers and marginalised communities in decision-making processes to enhance accountability and resilience.
Bangladesh’s economy has seen significant growth since 1980, with a 24-fold increase in GDP and a reduction in poverty rates by two-thirds. However, this growth has been accompanied by a 176 per cent increase in greenhouse gas emissions.
As climate change impacts become more pronounced, global attention on decarbonization is expected to rise. The study advocates for investments in just transitions to protect Bangladesh’s development trajectory while creating opportunities for businesses and high-quality jobs.
Rathi outlined seven priority areas for Bangladesh to address, including climate change mitigation, circular material adaptation, workplace climate adaptation, worker upskilling and social protection expansion, adequate housing for workers, and improved financial solutions and accountability for local companies and the government.
Kohli noted the growing global demand for sustainable fashion, urging Bangladesh to reduce its carbon footprint to capture a larger share of the international market. In response to questions about green financing, Habibur Rahman, deputy governor of the central bank, acknowledged the country’s climate vulnerability and emphasized the need for increased financial allocations for green initiatives.
