Adopting energy-efficient machines key to cutting carbon emissions: Experts
The efficient and versatile use of energy in industrial production must be amplified to effectively reduce carbon emissions, according to experts.
They urged the adoption of co-generation and tri-generation systems, the replacement of outdated generators, motors, and equipment with fuel-efficient alternatives, and a stronger focus on renewable energy, supported by coordinated guidelines across the energy sector.
The roundtable, held on 4 December, was jointly organised by Solidaridad, The Business Standard (TBS) and ESTex Foundation.
Keep updated, follow The Business Standard's Google news channel
Moderated by TBS Deputy Editor Sajjadur Rahman at the TBS office in the capital's Eskaton Garden, the session featured insights from experts, academics, and industry leaders.
Participants said that Bangladesh, a global hub for fashion products, must reduce its carbon footprint to remain competitive and sustainable, particularly in light of upcoming EU regulations.
They emphasised the importance of conducting life cycle assessments of energy, water, and chemical use in production, along with setting science-based targets for carbon reduction.
However, industry leaders pointed out that while adopting energy-efficient technologies holds promise, factories in Bangladesh face challenges in reducing operating costs due to inconsistent energy quality, which undermines the efficiency of advanced machines. Additionally, the high maintenance costs of such equipment place further financial strain on entrepreneurs.
Selim Reza Hasan
Country Manager, Solidaridad
Bangladesh's textile and apparel sector is becoming increasingly important not only to the country's economy but also as a major supplier of fashion products to the global market.
Efficiency in energy, chemical, and water use is essential for achieving circularity and progressing toward "Net Zero"— meeting the European Union's environmental sustainability regulations.
Improving energy efficiency is the key pathway for the industry to reduce water and carbon footprints. As the global hub for fashion product manufacturing, Bangladesh must develop a roadmap to lower its carbon footprint in the sector to ensure sustainability and remain competitive in the global market.
It is crucial to conduct life cycle assessments of energy, water, and chemical consumption throughout production processes and establish science-based targets to reduce the carbon footprint across the supply chain.
Solidaridad sustainability efforts for the textile and apparel industry focuses on developing business models for improving efficiency in energy, water and chemical consumption and use for improving responsible business compliances and reduction of carbon emissions.
Dr Ijaz Hossain
National Energy Expert; Ex-Dean, Engineering Faculty, BUET; Chairman, ESTex Foundation
Industry owners are unlikely to sleep soundly as they are receiving less gas than they did three years ago, despite a significant price increase.
Industries consumed 166 BCF (billion cubic feet) of gas in the fiscal year 2023-24, a decline compared to the previous three years. Does this indicate that industrial capacity has shrunk, or has energy efficiency improved? Energy is now too expensive to waste.
We have the opportunity to improve energy efficiency, as many efficient technologies are available in global markets. At the same time, there is a need for greater awareness to reduce energy consumption.
For example, if someone invests in an energy-efficient electric motor, it will pay back within a very short time due to its lower operating cost; and the cost saving will continue all through its lifetime.
The current gas supply is lower than it was three years ago, and about 56% of electricity is now used for domestic consumption. On the other hand, the country's energy consumption has remained almost the same during FY22 and FY23, reflecting a lack of economic growth over the last two years — something that is not good for any developing economy.
Bangladesh could set up an agency similar to the Indian Bureau of Energy Efficiency to reduce energy intensity in the economy.
The Carbon Border Adjustment Mechanism (CBAM) has already been enforced in the EU since 17 May 2023. Currently applied to heavy industries, it may eventually affect other industries, including the apparel sector.
There is a need to promote government awareness programmes more effectively, as many businessmen are unaware of the benefits they can gain from energy efficiency. Brick Kilns, for instance, could create informative documentaries and promote them online. Additionally, the use of artificial intelligence should be incorporated to enhance energy savings.
Dr Mohidus Samad Khan
Professor, Department of Chemical Engineering, BUET; Senior Fellow, ESTex Foundation
A survey was conducted to gather insights from industry stakeholders to develop and validate energy policy recommendations for the textile and apparel sector.
According to the findings, 66% of production industry representatives emphasised that energy efficiency and renewable energy are critical for the sector's long-term sustainability.
The survey also revealed key barriers hindering the adoption of energy-efficient practices: 37% of respondents identified a lack of awareness as the primary obstacle, 26% cited insufficient funding, and 16% pointed to regulatory constraints as major challenges.
These insights were underscored as vital for shaping targeted energy policies to support the industry's growth and sustainability. A significant number of respondents indicated that their organisations lack specific energy efficiency targets.
The limited knowledge of energy-saving technologies and best practices among respondents was identified as a significant barrier. Additionally, initial investment costs and lack of stakeholder support were highlighted as common obstacles. Respondents also indicated an interest in accessible and scalable technology options suitable for their current operational capabilities.
Energy cost reduction was identified as the most significant driver for implementing energy efficiency practices. A majority of respondents agreed that certification and associated benefits would motivate them to adopt energy-efficient practices.
The primary barriers to implementing energy-efficient practices were identified as: lack of funding, lack of expertise, regulatory constraints, and lack of awareness.
Shams Mahmud
Managing Director, Shasha Denims Ltd
There is a severe disconnect between government policies and the realities of the industry.
We are using energy-efficient generators and other technologies, but due to inconsistent power supply, the lifespan of these efficient technologies has declined from 50 years to just two years.
Even importing energy-saving fans, as discussed today, involves significant hassle. Often, importing energy-efficient machines leads to accusations of misdeclaration, resulting in penalties as high as 200%.
The Ministry of Environment, Forest, and Climate Change has hardly played any role in encouraging the use of eco-friendly technologies. The problems we are highlighting should have been addressed by them (ministry). To boost renewable energy adoption and technical capacity, banks need to provide low-interest loans on easy terms.
Our banks are currently incapable of offering low-interest loans. So, where will we get the funds? How can we adopt these technologies with loans at a 15% interest rate?
We often see goals for zero carbon emissions in policy documents, but there's no focus on mitigation or adaptation measures.
Azizur R Chowdhury
Managing Director, JM Fabrics; Director, BTMA
The energy consumption across the textile value chain for producing a garment is as follows: up to 35% is used in spinning, 25% in knitting or weaving, 40% in dyeing, and 5-7% in garment sewing.
In the textile industry, we have ample rooftop space, which we are using to install solar panels. Currently, 25-30% of our power comes from solar energy. However, there are significant duties on solar components — 25% on solar panels, 37% on inverters, and 58% on solar structures. These high duties feel like a discouragement from the government.
When the gas price rose from Tk15 to Tk30, we demanded an uninterrupted gas supply with consistent pressure. But now we're not getting full-pressure of gas.
A risky trend where many entrepreneurs are using cylindered gas in factories due to inadequate supply. It is dangerous, but we have no choice but to keep our operations running. One cylinder runs out, and another is connected. We know this is illegal, but we are forced into it because of the lack of a proper gas supply.
We are caught like a sandwich, with no direction or solution in sight.
Yameen Farook
Energy Expert
For the 20-25 years, I have been involved in the issue of quality energy supply and efficiency, there has been no significant improvement.
Factories should be rated using a star marking system based on their efficiency. Those performing well should be offered lower-cost energy, tax relief from the NBR, and other incentives.
Factories with lower efficiency should not be charged the same rate as those with higher efficiency.
If a company invests in renewable energy, relevant government agencies should provide a one-stop service. Businessmen often have numerous meetings with foreign buyers, so they should not have to visit multiple government offices. The government should also offer incentives to businessmen who increase their investments in the country.
Abul Kalam Azad
Manager, Just Energy Transition, Action Aid Bangladesh
Recently, we launched an energy transition network that includes representation from all stakeholders. Hopefully, it will help increase understanding for a smooth energy transition, especially since the country still lacks an energy transition policy. The RMG sector has developed thanks to the dedication of numerous entrepreneurs.
The government should create a policy tailored to our country's needs. We still do not have an energy transaction policy. Currently, discussions are underway, and a Renewable Energy Policy is being developed.
However, a national energy transaction policy guideline should be prioritised before finalising the renewable energy policy.
Sadia Raisa Khan
Economic and Private Sector Development Advisor, GIZ
Our businesses should prioritise data management. By calculating where and how much energy has been saved, it will be easier for buyers to justify higher product prices.
Businesses in the country should be categorised based on their energy efficiency. This will help identify those performing well, and they can be rewarded with appropriate benefits.
Md Ziaul Haque
Director (air quality section), Department of Environment
Our main emissions occur in spinning, knitting, dyeing, and washing. We need to calculate our carbon footprint. There needs to be good coordination between the government, the Department of Environment, the Sustainable and Renewable Energy Development Authority (SREDA), BSTI, and other relevant institutions.
SREDA needs to be strengthened. The directors and chairmen of these organisations should have a technical background.
BSTI is giving 5-star energy rating certificates for various products. People need to be informed about the benefits of this rating. They need to know the long-term benefits of purchasing products with this rating, even if they are more expensive. Then people will be aware and encouraged to use these products.
We are taking a long-term plan. We are conducting a study, based on which we will say when our net zero target will be. It could be 2070. We need to try to reduce emissions daily, and at the same time, we need to conserve our forests. We have sent a list to NBR to reduce the import duty on products that reduce carbon emissions.
SM Monirul Islam
Deputy CEO, Infrastructure Development Company Ltd (IDCOL)
We have launched a Solar Opex Model. In the OPEX model, the installer company completely finances the solar installation itself.
Environmentally friendly production systems have become important in the country now. Our entrepreneurs are moving towards a "circular economy" in sustainable economics.
We need to work on the energy efficiency of our home appliances. Here we will work on providing machinery on easy terms, buying products in instalments.
We now face a big challenge here, a shortage of skilled workers to maintain energy-efficient products. It is very difficult to find someone to fix an inverter AC. Mechanics will say not to install an inverter AC, but to install a normal AC so that it can be easily repaired. So, initiatives need to be taken to develop skilled workers in this sector.
Md Abdullah Al Mamun
Assistant Director (Energy audit and accreditation), SREDA
We will label machines to indicate their energy efficiency. The Bangladesh Standards and Testing Institution (BSTI) will assist us in this. This will help consumers easily understand the energy efficiency of motors.
If we manage our energy usage properly, we can save 10%.
Under a programme, we have provided 4% loans to 31 garment and textile factories so that they can use energy-efficient machinery. More such programmes will come in the future. JICA, ADB, and the World Bank have expressed interest in funding this.
We will launch a National Energy-Efficiency Repository system. This data will help in managing both the demand and supply sides.
Mohammad Abdullah Yousuf Khan
Programme Manager, Textile and Apparel, Solidaridad
Several European countries have introduced carbon taxes in various sectors to achieve long-term carbon neutrality as part of the European Green Deal. Therefore, we need to act quickly with a plan.
The waste generated in product manufacturing is now being used as a resource. We need to focus more on this. We should manufacture high-end and long-lasting products. This will reduce carbon emissions in the long run.
Only 0.3% of textiles are recycled globally, and most of it is plastic recycling which we use as synthetic fibre. Here, we consume a lot of water and energy during cotton collection and dyeing. So, recycling can help reduce carbon emissions. Government policies and support are needed here. Brands also need to support this.
Ahmed Imtiaz
Managing Director, Viola Properties Ltd
We have significant potential in solar power, and we can utilise the rooftops of factories for this purpose. The government could offer incentives to companies using outdated machinery, encouraging them to replace old motors and machines with newer, more energy-efficient technology. Additionally, machine manufacturing companies could be incentivised to produce energy-efficient machines.
Currently, DC and AC cables are being manufactured in our country. The government can offer incentives to those producing these cables. We should also take steps to promote the domestic production of solar panels, which would reduce costs and create opportunities for export.
Sarwar Zahan
Energy Expert
We need to know how much carbon is being used to manufacture our products. By regularly monitoring the energy consumption and identifying months with higher consumption and the reasons behind it, we can increase energy efficiency by 10-15%.
For example, if we can identify instances where water is left running. Data needs to be collected from every industry.
Shajedul Islam Maruf
Deputy General Manager, Beximco Limited (Textile)
To reduce thermal energy (heat energy storage for later reuse), we need to control the process. How can we save energy using advanced technology? However, this will require increased investment, without which it will not be sustainable.
There is no benchmark for those who invest heavily in factories. Businesses that reduce carbon emissions need to be incentivised. Buyers should buy products at a higher price from such institutions. But that is not happening; they are getting the same price as other businesses.
Mohammad Shah Alam
Deputy General Manager, Epyllion Group
Most factories comply with all social and environmental requirements, but there is no distinction between compliant and non-compliant factories in terms of benefits from buyers or the government. Both parties should provide support to maintain sustainability standards in the factories.
We are meeting all the requirements for our Effluent Treatment Plant (ETP), ensuring that water is neutralised of hazardous substances and de-coloured before being discharged. However, environmental authorities are pushing for zero discharge, yet they have not taken any action against those who are not maintaining ETPs.
Many foreign brands are asking us to reduce carbon emissions by 50% by 2030, and our factory is working towards this goal. However, we don't receive much cooperation from the government. On the contrary, various government organisations target those who are making good progress while remaining silent about those who are doing nothing and dumping polluted water mixed with chemicals directly into the river.
Kowshick Sen
Manager, Eurocentra Bangladesh
About 84% of our export earnings come from RMG. Only 27% of the country's total energy consumption is used in the RMG sector. Just as we are discussing this sector, we must also discuss energy in other sectors, including homes.
There is still a lot to be done to adopt energy-efficient technology in institutions. Government policies need to support increasing the use of energy-efficient technology. India and Pakistan have a benchmark for the minimum selling price of a garment. Since we do not have this in our country, there is unhealthy competition. Buyer institutions are taking advantage of this.
Energy audits should be mandatory. Energy audits are not regular. Along with that, renewable energy should be installed. Green buildings should be increased.
