The government of Denmark, through the Danish International Development Agency (DANIDA), has committed for a fund of $3.19 million to enhance cleaner production in the ready-made garment (RMG) sector in Bangladesh.

“The latest UN IPCC report on climate change has reminded us once again to take climate action now,” said Danish Ambassador to Bangladesh Winnie Estrup Petersen.

The IFC’s Partnership for Cleaner Textile (PaCT II) is supporting cleaner production and green growth in the RMG sector towards a sustainable Bangladesh, Petersen said today, according to a statement of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The Danish and Dutch embassies in Bangladesh and PUMA are renewing their commitment for programme to support decarbonisation of the garment sector in Bangladesh, according to the statement.

German multinational Puma is scaling up its efforts to decarbonise its supply chain in Bangladesh through PaCT’s advisory services.

“At Puma, we are committed to climate action in alignment with the UN’s Sustainable Development Goals and Science Based Target Initiative,” said Veronique Rochet, senior head of sustainability at Puma.

“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 optimise their resource consumption and minimise their environmental impact.”

PaCT is also expanding its activities through a grant agreement with 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,” said Faruque Hassan, BGMEA president.

The IFC’s PaCT program has already delivered impressive results, including 618,779 tonnes of greenhouse avoided in a year, which is equivalent to removing 134,572 passenger vehicles from the road annually, said Tuyen Nguyen, Asia regional lead for manufacturing advisory of the IFC.

The PaCT also saved water of 27,637,931 cubic meter per year, which is equivalent to meeting the water needs of 1.5 million Bangladeshis a year, he said.

The programme works with stakeholders, including five global apparel brands, 381 RMG factories, industry associations, the government, financial institutions, and technology vendors.

“A big lesson from Covid-19 is the need to re-orient the global economy onto a more sustainable path,” said Nuzhat Anwar, IFC’s acting country manager for Bangladesh, Bhutan and Nepal.

“These agreements will help factories become more climate conscious and brands to decarbonize their supply chains effectively, contributing to economic recovery and resiliency of the sector.”