Garment industry experts and representatives from ready-made garment (RMG) companies are calling on the government to lower import taxes on solar power equipment and other renewable energy supplies.
They also emphasise the necessity of government policy assistance for the establishment of indigenous firms that manufacture equipment for renewable energy.
This appeal was made during a focus group discussion organised by the Business Initiative Leading Development (BUILD) on “Energy Transition in Bangladesh Apparel Sector: The Case of Market Access to the EU,” held at BUILD’s conference room in the city. The study involved input from government regulatory organisations, private RMG entrepreneurs, financial institutions, supporting organisations, and research organisations.
Farjana Yasmin, a senior research associate at BUILD, stated in her presentation that import taxes on raw materials used to establish renewable energy facilities are substantial, often reaching 85 per cent. These levies range from 25-28 per cent.
By 2050, the European Green Deal seeks to transition the entire continent to emission-free goods. In pursuit of this objective, Bangladeshi suppliers to the garment and RMG industries in Europe are facing pressure to convert to renewable energy sources.
To investigate this, BUILD evaluated Bangladesh’s textile industry’s shift to renewable energy sources as part of the Textile Competitiveness Platform. The study concluded that in order to be sustainable over the long run, RMGs need assistance in investigating alternate energy sources.
Farjana also noted that the documentation process for accessing financing from the Green Transformation Fund is rigorous and time-consuming.
H&M Environment Sustainability and Governance Program Manager Ashraful Islam Ashraful Islam stressed the importance of reducing our products’ carbon footprint and increasing renewable energy usage to avoid concerns about exporting RMG products to the EU market.
The event’s chief guest, Munira Sultana, chairman of the Sustainable and Renewable Energy Development Authority, underscored the importance of these discussions for the future of the RMG sector.
