12-05-2025
- Business
- Fashion Value Chain
Bangladesh Textile Sector Faces $4.8B Green Gap
A new report by the Apparel Impact Institute (Aii) and Development Finance International (DFI) outlines a $6.6 billion investment needed to cut greenhouse gas emissions in Bangladesh's apparel and textile industry by 50% by 2030. While $1.6 billion in funding is currently accessible and $175 million is expected soon, a $4.8 billion gap remains. Bangladesh, already among the top five countries with the highest GHG reduction potential in the apparel sector, can significantly support global climate goals if this gap is bridged.
The report proposes innovative financial models—like blended finance, green bonds, and pay-for-performance—to attract private capital and enable the transition to low-carbon technologies. Barriers such as limited technical knowledge and high infrastructure costs are also addressed, with rooftop solar, LED retrofitting, and waste heat recovery listed as practical interventions.
Aii's Climate Solutions Portfolio (CSP) is already in place to support suppliers with funding, technical know-how, and performance data, de-risking investments and accelerating the green transition. The report emphasizes that international-local cooperation is vital to ensure Bangladesh becomes a global leader in sustainable apparel manufacturing.
