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| Fig. 1: Bangladesh Energy Consumption Breakdown by Sector FY2022-2023. [3-5] (Image source: Z. Jahan) |
Bangladesh's ready-made garment (RMG) sector is crucial to its economy, generating more than 80% of the country's export earnings and employing millions of workers. [1] The scale of the garment industry has turned it into one of Bangladesh's most energy-intensive industrial sectors, relying heavily on natural gas and grid electricity. [2] The sector's growing energy demand strains the national grid, making the industry reliant on imported natural gas, and amplifies carbon emissions, reducing Bangladesh's export competitiveness as more apparel brands integrate energy criteria into supply chain selection.
Most of the processes involved in garment production, from washing to dyeing to finishing processes, are powered by grid electricity derived from natural gas. A 2023 study investigating the electricity consumption of Bangladesh's 2,706 RMG factories found that the total energy demand was 6,251 GWh/year. [3] Given that the country's total consumption in the 2022-2023 fiscal year was 86,255 GWh, it can be calculated that the garment industry accounts for about 7.24% of Bangladesh's annual power consumption. [4] Within the industrial sector in particular, which accounted for 23,237 GWh of Bangladesh's power consumption in the same fiscal year, the RMG industry was singlehandedly responsible for 27% of that consumption, making it the most energy-intensive industrial sector. [5] Bangladesh's reliance on finite gas reserves has resulted in periodic shortages and higher production costs, intensifying pressure to improve efficiency across all sectors.
The energy intensity of Bangladesh's garment sector carries significant implications for both the environment and the economy. From an environmental standpoint, the industry's electricity consumption translated to a growth in greenhouse gas emissions from 129,015 tons in 2019 to 137,880 tons in 2021. As a result, 15.4% of Bangladesh's total greenhouse gas emissions originate from the RMG industry. [2] As decarbonization and sustainable fashion initiatives, like the European Commission's Green New Deal and the United Nations Sustainable Development Goals, influence global brands to adopt stricter sustainability benchmarks, high energy intensity poses a risk to Bangladesh's status as a competitive garment exporter. For example, H&M, one of Bangladesh's top RMG customers, has decided to reduce emissions by 50% by 2030. [6] Without the adoption of more sustainable production practices, Bangladesh may lose export access to such key markets in Europe and North America.
Furthermore, Bangladesh's industrial power supply as a whole remains heavily reliant on natural gas, which accounts for about 68% of the nation's primary energy use. [7] Since gas production within Bangladesh is still limited, 95% of the liquified fuel used in the country is imported.
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| Fig. 2: RMG Factory in Dhaka, Bangladesh (Source: Wikimedia Commons) |
Looking at natural gas in particular, about 560 million standard cubic feet of liquefied natural gas (LNG) is imported daily through two main LNG terminals. However, supply chain disruptions and rising energy demands have led to periodic imported gas shortages. [8] As a result, the RMG industry's dependence on an unreliable supply of natural gas combined with grid disruptions and new rising electricity tariffs have led to a reduction in garment outputs and higher production costs. [3] Efficiency improvements can enhance operational reliability and help mitigate rising energy costs.
Some stakeholders argue that the energy consumption of the RMG industry is not significant enough to justify environmental reforms that could potentially endanger jobs in garment factories that intentionally use cheap, energy-intensive practices to be able to afford more workers. However, Bangladesh's reliance on the RMG industry suggests energy efficiency and employment are not in conflict. Although the sector accounts for less than 10% of total national electricity use, it is Bangladesh's most energy-intensive industrial sector and its economic importance as an industry outweighs its share of energy consumption. The garment industry provides over 80% of Bangladesh's export earnings and employs more than four million workers, making it the foundation of the national economy. [1] If energy inefficiency leads to loss of export competitiveness, then millions of jobs are endangered, especially since global buyers are increasingly requiring evidence of energy-efficient production. In this context, energy sustainability is a strategy consistent with maintaining livelihoods. Furthermore, reducing energy demand within the RMG sector also reduces Bangladesh's dependence on imported natural gas and exposure to global energy supply chain volatility. Recognizing this relationship, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has joined the United Nations Fashion Industry Charter for Climate Action, setting a target to reduce energy intensity by 30% by 2030. [9] These initiatives affirm that advancing energy efficiency in the garment sector is not simply an environmental gesture, but also a necessity for long-term economic resilience.
Improving energy efficiency in Bangladesh's garment industry requires a combination of technological modernization, policy support, and management reform. The most immediate and measurable solution lies in equipment upgrades, particularly in dyeing units, which are the biggest energy consumers in RMG factories. [2] A study of energy motivators in Bangladesh's garment sector revealed that 75% of factory owners are interested in making their production processes more efficient, but that the majority of them believe that technology adoption is the largest barrier in accomplishing this goal. In the same study, 90% of technology providers expressed the need for government support in being able to supply the necessary equipment to manufacturers. Considering these responses, government intervention is essential in accelerating the adoption of sustainable technologies, like energy efficient dyeing units, in RMG factories. [10]
Complementary strategies were proposed in another study of 15 textile dyeing mills, which stressed the importance of energy audits, equipment maintenance, and process control as important interventions. Specifically, the authors recommend smart lighting utilization, heat recovery and condensate reuse, and increased frequency of leakage testing throughout factories. [11] These solutions require relatively low capital investment but depend heavily on managerial commitment to continuous monitoring and reporting.
Bangladesh's garment sector is a source of both economic growth and high energy consumption. Rather than conflicting with employment objectives, energy efficiency fortifies the industry's resilience. Achieving the BGMEA's 2030 energy reduction goals will require technology upgrades and strategic government policy support, but it remains technically and economically attainable. As sustainability becomes increasingly important within the global apparel market, the path forward for Bangladesh's garment industry lies not in higher energy consumption, but in more efficient energy use.
© Zara Jahan. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.
[1] A. J. Jiban et al., "Ready-Made Garments (RMG) Export Earnings and Economic Development of Bangladesh: Empirical Analysis Using Vector Error Correction Model," J. Asian Finance Econ. Bus. 9, 2938 (2022).
[2] Md. M. Hasan et al., "Greenhouse Gas Emissions and Energy Consumption in the Garments, Textile, and Dyeing Sectors in Savar, Dhaka (2019-2021)," Asian J. Environ. Ecol. 23, 88 (2024).
[3] S. I. Khan et al., "Auditing and Energy Efficiency of a Ready-Made Garment Factory in Bangladesh: A Case Study," Energy and Power Engineering 14, 387 (2022).
[4] "Annual Report 2022-2023," Bangladesh Power Development Board, 2023.
[5] P. Chowdhury et al., "Power Sector Transformation in Bangladesh: Paving the Pathways Towards Sustainable Development," Energy Strategy Rev. 61, 101829 (2025).
[6] A. M. Thakker and D. Sun, "Sustainable Development Goals for Textiles and Fashion," Environ. Sci. Pollut. Res. 30, 101989 (2023).
[7] "BP Statistical Review of World Energy," British Petroleum, June 2022.
[8] "Country Paper on Bangladesh Energy Sector," Bangladesh Ministry of Power, Energy and Mineral Resources, February 2021.
[9] "A Just Transition in the Textile and Garment Sector in Bangladesh: Technical Stakeholder Workshop," International Labour Organization, October 2022.
[10] A. H. Bagdadee, S. Hossain, and L. Zhang, "Strategic Motivators For Integrating Energy Economics into the Developing Garments Sector: A Comprehensive Analysis from Bangladesh," Heliyon 10, e40631 (2024).
[11] A. A. Mamun et al., "An Assessment of Energy and Groundwater Consumption of Textile Dyeing Mills in Bangladesh and Minimization of Environmental Impacts Via Long-Term Key Performance Indicators (KPI) Baseline," Textiles 2, 511 (2022).
