This study is very important pathway have to achieve Green Industry and Green Economy in RMG sector in Bangladesh.

1. BKMEA
Bangladesh Knitwear Manufacturers and Exporters Association
Venue: BKMEA , Dhaka Office
Date: 12.07.2015
AYUB ALI
Senior Assistant Secretary (R&D)

2.  Bangladesh economy has performed quite moderately against the backdrop of the
global economic slowdown and various obstacles over the recent past.
 The economy is flourishing as a rapidly developing one with a growth rate of over
6 percent over the last one and half decades.
 RMG and Remittance inflows activities, on the other hand, also help to achieve the
solid economic growth rate, in which RMG sector contributes 14.07% of the total
national GDP.
 The industry plays a key role in employment generation and in the provision of
income to the poor. Nearly 4.5 million workers one directly, , of whom 85% are
women and more than 20 million inhabitants are indirectly associated with the
RMG industry.
 In this RMG sector, total export earnings are $24.49 billion and average growth
rate 6.15 in the last two decades. Total export contribution is 81.16% of the export
in the RMG sector.
 RMG sector contributes 81.16% of the total export and 14.07% of the total GDP.

3.  Bangladesh is one of the cheapest garments producer and supplier known their
efficiency and quality. But this price is not representing the social and
environmental cost.
 In globally, social and environmental cost must be concerned for the climate
change that must be responsible consumer and producer. So, consumers must be
included with the adaptation and mitigation program.
 The industry is now at a critical moment. For examples, Rana plaza of Saver
collapsed in April, 2013 and killed 1129 workers. On the other hand, fire accident
is one of the common phenomena for RMG sector from 2005 up to present time.
 Other deficiencies, such as inefficient resource use (water and power) and poor
environmental practices, have been highlighted prior to the tragedies.
 Textiles is also major contributor to water pollution and scarcity, impacting health,
food production, and other economic sectors.

4.  Indeed, given the damage to Bangladesh’s RMG sector following the factory
disasters of Rana Plaza and Tazreen, an additional attraction for BGMEA, BKMEA
and other key stakeholders is the potential positive branding of pursuing a “Green”
or environmentally – friendly agenda for the sector.
 Bangladesh is globally considered to be one of the most adversely affected
countries due to climate change. The Third Assessment Report of the IPCC (IPCC,
2001) ranked Bangladesh high in the list of most vulnerability countries.
 Indeed, Green Industry Development is the most innovative step for the industrial
development that will reduce using the natural resources and recycles and reuse
management policy are most effective to maintain towards green industry
framework.
 an introduction to Green industry Development will help to achieve sustainable
development framework towards Green Economy in the RMG sector in
Bangladesh.

6.  The green economy is an economy that results in reducing environmental risks
and ecological scarcities, and that aims for sustainable development without
degrading the environment. It is closely related with ecological economics, but
has a more politically applied focus.
 The 2011 UNEP Green Economy Report argues "that to be green, an economy
must not only be efficient, but also fair. Fairness implies recognizing global
and country level equity dimensions, particularly in assuring a just transition to
an economy that is low- carbon, resource efficient, and socially inclusive."
 In the industrial world, it is defined as resources efficient, technology driven
activity that increases investments and growth while substantially reducing
carbon footprints; thus fast and clean mass-transport systems and motor fuel
hybridisation; cradle-to-cradle production and consumption patterns; advanced
waste management on the 3Rs pattern; controls on chemicals use and
management; careful mining practices and action plans to make these
investments and activities sustainable, characterise one type of green economy.

9. Green-Economy is essentially an inclusive concept comprising economic,
social and the environmental pillars of growth.
 Well-being; measured not merely on the Happiness Index but in the
context of pursuing and achieving the development goals.
 Equity; for diversified sustainable development.
 A win-win economic-environmental model; Projects and programmes
are co-beneficial, bringing in revenues from both environmental and
economic investments.

10.  The International Chamber of Commerce (ICC) representing global business defines green
economy as “an economy in which economic growth and environmental responsibility work
together in a mutually reinforcing fashion while supporting progress on social development”.
It sets out the following 10 conditions which relate to business/intra-industry and
collaborative action for a transition towards a green economy:
1 Open and competitive markets 6 Resource efficiency and decoupling
2 Metrics, accounting, and reporting 7 Employment
3 Finance and investment 8 Education and skills
4 Awareness 9 Governance and partnership
5 Life cycle approach 10 Integrated policy and decision-making

11. Green
Economy
Renewable
Energy
Green Buildings
Sustainable/
Clean
Transportation
Water
Management
Waste
Management
and Disposal
Land
Management
Karl Burkart defines a green economy as based on six main sectors:

12.  Green Industry is industrial production and development that does not come at the
expense of the health of natural systems or lead to adverse human health outcomes.
Green Industry is aimed at mainstreaming environmental, climate and social
considerations into the operations of enterprises.
Green Industry is therefore an important pathway to achieving
sustainable industrial development. It involves a two-pronged
strategy to create an industrial system that does not require the
ever-growing use of natural resources and pollution for growth
and expansion. As seen in Figure 1, these two components are (1)
the greening of existing industry, and (2) the creation of new
“Green industries”.

16.  textile industries must establish ETP for their effluent treatment. Instead they do not
directly discharge their waste water and solid wastes to nature and contribute to
huge pollution and contamination.
 The chemical and fertilizer usage is also significant for raw material production.
 Organic cotton is suggested. Reuse and recycling of garment products can provide
a better environment.
 The economic aspect of garments industry has the tremendous contribution at the
economic progress. The sustainable pillars are very important for the growth and
development. An economic pillar is one of the most important pillars for the
sustainability.
 RMG and Remittance inflows activities, on the other hand, also help to achieve the
stable economic growth rate in which RMG sector contributes 14.07% of the total
national GDP.
 Nearly 4.5 million workers one directly, of whom 85% are women and more than
20 million inhabitants are indirectly associated with the RMG sector, .

17.  In the RMG sector, total export earnings are $ 24.49 out of $30.18 and average
growth rate 6.15 in the last two decades. Total export contribution is 81.16% of the
total export in Bangladesh.
 The social aspect of garment industry has the worst situation. The living standards
of the workers are very poor as they receive the lowest wage. Gender equality for a
salary and job position is not maintained properly.
 Most of them are 12 to 15 years old girls coming from village areas. There is no
community of workers grown up. The workers live in most of the slum areas and
are socially considered as lower class people.
 The socio-environmental condition includes health and safety issues of the workers,
which is the worst of the world. There are several hazards appeared including fire
accidents, building collapses etc. Every year many workers are died and get injured
due to the hazards. The safety levels in many factories are still very poor.
 Unfavorable working condition often makes them sick. Crisis management is also
bad. Many times workers are bound to join work during 'Hartal' a common
phenomena of strike called by political parties. Working on Hartal put their life
risky as very often violence and clashes occur during that time.

18.  USGBC Indicator

19. 1997 Rules
Indicator
Air Pollution
Water Pollution
Sound Pollution
Motor Vehicles Emission Pollution
Odor Pollution
Sewage Discharge
Waste from industry unit
Gaseous Emission
Effluent (liquid waste)
Boiler of Industrial Unit

20. “The continuous application of an integrated preventive environmental strategy
applied to processes, products, and services to increase overall efficiency and
reduce risks to humans and the environment.” (United Nations Environment
Programme)
 Production processes: conserving raw materials and energy, eliminating toxic
materials, and reducing the quantity and toxicity of all emissions and wastes.
 Products: reducing negative impacts along the life cycle of a product, from raw
materials extraction to ultimate disposal.
 Services: incorporating environmental concerns into designing and delivering
services.
Four elements of the clean production:
 The precautionary principle
 The preventive principle
 The public participation principle
 The holistic principle

22. Cleaner
production
techniques
Reduction
Good
housekeeping
Process
change
Process
control
Process
modification
Technology
change
Raw material
change
Recycling
Off – site
recycling
On – site
recycling
Product
modification

23.  Technological capacity
 Training capacity
 Institutional capacity
 Government capacity
Cleaner production Stages:

24. Cleaner
Production
Process
Section
Thermal
Mechanical
Section
Chemical
Storage and
Chemical
Handing Occupation
Health and
Safety
Power
Generation
and Electrical
Section

25. 1. Continuous
2. Integrated
3. Preventive
Environmen
tal Strategy
1. Processes
2. Products
3. Services
Risk
Reducti
on
1. Humans
2. Environmen
ts

26.  Increased profitability
 Lower production costs
 Enhanced productivity
 A rapid return on any capital or operating investments required
 Increased product yield
 More efficient use of energy and raw materials
 Improved product quality
 Increased staff motivation
 Active worker participation in idea generation and implementation
 Reduced consumer risks
 Reduced the risk of environmental accidents
 Supported by employees, local communities, customers and the public
 Provided enhanced access to capital from financial institutions and lenders

27.  Cost of the green industrial development (environmentally sustainable) is defined
as the cost to the industry for keeping the quality of environmental resources at
their nature regenerative capacity.
 This cost could be measured by modeling producer behavior with environmental
regulation. By using (a) cost function, (b) production function, and (c) distance
function.
 In the first model, a firm minimizing cost takes a decision about the pollution load
such that the marginal cost of abatement is equal to the pollution tax.
 In the second model, pollution loads could be considered as inputs along with the
conventional inputs (marginal value productivity of pollutant is eq1ual to the tax).
 In the third model, shadow prices for a vector of pollutants could not estimated
using estimates of input or output distance functions.

28.  Conventional pricing:
P = MC;
P = Price, MC = marginal cost of production;
 Green Pricing:
P = MC+MEC+MUC;
P = Price, MC = marginal costs of production, MEC = marginal external (Environmental &
Social cost) cost of production, MUC = marginal user cost, i.e. the value of future
benefits forgone by using a resource now, (David, 1992).

29.  Green Taxes should encourage social inclusion, social equity, economic efficiency
and environmental sustainability.
 Its should discourage the use of non – renewable resources, monopoly of common
resources, pollution and waste.
 Green tax : Reduce emissions until marginal abatement costs are equal to the
charge on emissions.
 Green tax = MAC = Charge on emission
Or
 MAC = MD
MAC = marginal abatement cost, and MD = marginal damage.

31. Emissions
(tons/month)
Marginal
Abatement
cost
Total
Abatement
Cost
Total Tax Bill
at $120/ton
Total Costs
10 0 0 1200 1200
9 15 15 1080 1095
8 30 45 960 1005
7 50 95 840 935
6 70 165 720 885
5 95 260 600 860
4 120 375 480 855
3 150 525 360 885
2 185 710 240 950
1 230 940 120 1060
0 290 1230 0 1230

32.  Gross Domestic Product is defined as the market value of all the final goods and
services produced within a country in given period of time.
 The most common approach to measuring and understanding GDP is the
expenditure method:
GDP = C+I+G+(X-M);
GDP = Gross Domestic Product, C = Consumption, I = Investment, G =
Government Expenditure, X = Export and I = Import.
 Green GDP as the regular GDP minus the cost of environmental and social damage.
Green GDP = GDP – (Environmental costs +Social costs).