Promoting Green Industrial Park in Bangladesh

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Shams-Al-MujahidJoint SecretaryGovernment of BangladeshDirector (Foreign Investment)Bangladesh Investment Development AuthorityPrime Minister’s Office

Prime Minister’s Office

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Green Industrial Park in Bangladesh

Bangladesh Garment Manufacturers and Exporters Association establish an industrial park at Mirsarai economic zone

Plummy Fashions Limited, Fotulla,Narayngonj

Envoy Textiles, Bhaluka, Maymensingh Vintage Denim Studio Limited, Ishwardi Export Processing Zone, Pabna

Case Study: Plummy Fashions Ltd (PFL)

Plummy Fashions is number one garments factory in theworld. It is awarded by USGBC (U.S.GREEN BUILDINGCOUNCIL) for assuring a good contribution in several fieldslike reduction in energy use, reduction in water use, reductionin carbon footprint etc.

Why the Best: LEED Platinum Certified 40% reduction in energy use 41% reduction in water use 35% reduction in carbon footprint

Green Industrial Park & SDG

Bangladesh:• An economy with stable 6% growth.• A Lower Middle Income Country (LMIC).• success stories of the MDGs, a frontrunner in implementing SDGs.• Bangladesh is one of the most climate vulnerable countries of the world with

challenges in the future and also success at the present as well as past incombating this problem with its own resilience, policy and resources.

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Financing Strategy for implementation of SDGs (US $ in billion):

FY17-FY20 FY21-FY25 FY26-FY30 FY17-FY30

Total additional amount from domestic sources (85.11% of total) 107.72 257.49 430.87 796.09

Total additional amount from external sources (14.89% of total) 22.07 43.15 67.17 132.39

Total additional amount from both domestic & external sources (85.11% of total)

129.79 300.65 498.04 928.48

Annual average additional amount from domestic sources 26.93 51.50 86.17 56.86

Annual average additional amount from external sources 5.52 8.63 13.43 9.46

of which FDI 2.73 6.45 10.70 6.91

Grants and Aid 2.79 2.17 2.74 2.55

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Actual sectoral growth (in constant prices), FY2013-FY2018(Est.) and projected sectoral growth of FY2021

Source: GED, Planning Commission, Perspective Plan of Bangladesh 2010-2021 &BBS.

2.413.81

2.45 1.79 1.96 2.64.5

9.029.44

9.648.16

11.211.77

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10.31 8.77 10.31 11.6910.97

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146.22 6.58 6.62 6.76

7.137.37

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6.01 6.06 6.55 7.11

7.287.5

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0

10

20

30

40

50

60

2013 2014 2015 2016 2017 2018 2021

GDP

Services

of whichManufacturing

Industry

Agriculture

Importance of Green industrial park in Bangladesh

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Effects of industrial pollution onEnvironment:

• CO2 an industrialpollutantcause ocean acidification• Greenhouse gases leads to global warming affects ecosystems.• Create infertily to land and affects organisms in the foodweb.• SO2 and NO2 causes acid rain decreases land fertility

Why Greenindustrialpark isimportantforBangladesh?

economy has been going through significant structural changes over time. transforming from a agricultural to an industrial and service oriented

economy. share of agriculture has declined from 25% of total GDP during 1995 to

14.74% in 2017

share of industry has increased from 23.3% in 1995 to 32.42% in 2017

Success of Bangladesh: in Green Industrial Park

Bangladesh’s Ready-Made Garments sector, a $28 billion industry, hastaken the lead in green manufacturing as it has established 67 eco-friendly green buildings, the highest number in the world.

7 of the top 10 Leadership in Energy and Environmental Design (LEED)certified factories in Bangladesh:

1st Position | 97 point | Remi Fashions.

2nd Position | 92 point | Plummy Fashions.

3rd Position | 90 points | Vintage Denim Studio Ltd.

5th Position | 85 points | SQ Celsius 2.

9th Position | 81 points | Genesis Washing.

9th Position | 81 points | SQ Cole Blends.

9th Position | 81 points | SQ Birichina Ltd.

Initiatives taken By the Government of Bangladesh

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Environment Related Actsof Bangladesh:

• Bangladesh Environment Conservation act,1995

• Environment Court Act 2010• Hazardous Waste and Ship Breaking Waste

Management Rules 2011• The Brick Burning ( Control) Act,1989• The Building Construction Act, 1996• The Environmental Conservation Rules, 1997• The Forest Act 1927• Water Pollution control Ordinance 1973• Bangladesh wild life (preservation) order 1973

& wild life (preservation) Act1973• Bangladesh Bio-safety Rules 2010.

Environment Related Policy & Strategies:

• National Conservation Strategy (NCS): (draft )

• National Conservation Strategy (NCS) - 2015 –2016

• Bangladesh Climate Change Trust (BCCT)• National Environmental Management Action

Plan (NEMAP) • National Bio-diversity Strategy and Action Plan

(NBSAP• National Action Programme (NAP)• Bio-safety Guideline for Bangladesh• National Adaptation Programme of Action( NAPA)• National Capacity Self Assessment (NCSA)• Bangladesh Climate Change Strategy and Action

Plan-2009• The Renewable Energy policy 2009• Seventh Five Year Plan FY2016 – FY2020• Perspective Plan (2010 – 2021)

Initiatives taken by the Investment Promotion Agencies

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Bangladesh Investment Development Authority (BIDA) always Promotinggreen FDI for investor. As a apex Investment promotion agencies (IPAs) ofBangladesh BIDA always ‘think outside the box’ to identify opportunities andways to use foreign direct investment (FDI) to green their economies.

Bangladesh Economic Zones Authority (BEZA) is implementing 100economic zones across the country. To ensure green environment EconomicZone (EZ) developer can adopt green standards for buildings such as(LEED) certifications or equivalent & prefer low carbon emission industrywith sharing of surplus heat energy by sister concerns.

The Bangladesh Export Processing Zones Authority (BEPZA) has takeninitiatives to adopt green practices at different export processing zones (EPZs)across the country by setting up solar-powered street lights and effluenttreatment plants.

Bangladesh Hi-Tech Park Authority establish Software Technology park, ITPark, IT Village, IT Hub etc. with ensure green environment.

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Strategy for establishing Green Industrial Park in Bangladesh:

Two-pronged strategy to create green industrial park:(1) Greeningof existing industry: Long-term focus on continuously improvingenvironmental performance regardless of sector, size orlocation by:• Improving production efficiency: using resources more efficiently and

optimizing the productive use of naturalresources;• Enhancing environmental performance: minimizing environmental impact by

reducing the generation of waste, emissions and environmentally soundmanagement of residual wastes;and

(2) Creating newgreen industries:Goal is to supply for domestic needs withgreen technologies and service the need of international markets:• Install renewable energy equipment as well as a wide range of companies

developing clean technologies for the industrial, transport, buildings andautomotivesectors.

• Ensure recycling companies, waste management and treatment companies, aswellascompanies that transport.

• Engineering companies that specialize in wastewater treatment, air pollutioncontrol and waste treatment equipment, provide monitoring, measuring andanalysisservices.

Policy Framework for promoting GreenIndustrial Park inBangladesh

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Greening of industries is a cross-cutting exercise. It has a range of policy streams, such as

1) Industrial policy2) Environmental policy3) Regional development policy

Green industry policies - broad range of government interventions which directly or indirectly support the promoting Green Industrial Park

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1) CreateIntegrated Framework for Supporting the Green Industrial Park

• Commitment to the greening of industries from top levelsof the government

• Setting up a high-level strategy including sustainable development poverty reduction, sustainable consumptionand production, or other related topics

• Setting up regulatory frameworks

• Coordination of various bodies such as ministerial committees orinter-agency forums, and developing integrated, high-level sector strategies, e.g. education, health & safety, science

• Development of clear, measurable and enforceable policies

Policy Framework for promoting GreenIndustrial Park inBangladesh

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2) Creating an Enabling Environment

Market-based measures such as• Providing access to finance through loans, grants, seed funds etc.• Removal of harmful subsidies

International cooperations and trade and investment policies. Integration of environmental issues with trade and investment policies

Provision of eco-efficient infrastructures such as wastewater, water, energy, recycling etc.

Supporting local action by empowering local authorities and community-based organisations. Collaborations, resourcing, capacity building, and institutional support

Enhancing the skill base of society through education curricula and training programmes. Targeting all levels of education: primary and secondary, technical and vocational, higher education, and lifelong/on the job

Policy Framework for promoting GreenIndustrial Park inBangladesh

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3) Instrument Mixes to Support the Greening of Industries

Policy mixes, which include market-based, regulatory, voluntary, andinformation- based instruments

Instrument mixes which are flexible and broad-based A system of monitoring, revenue collection and enforcement to support

the implementation of market-based instruments (Environmental taxesand charges pricing instruments)

An integrated, overarching legal framework to support regulatory policymeasures

Flexible and well-designed policy measures so not to stifle technologicalinnovations

Environmental indicators to support monitoring and enforcement regime Compliance regimes which combine promotion, monitoring, and

enforcement tools

Policy Framework for promoting GreenIndustrial Park inBangladesh

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4) Harnessing Environmental Technologies

Developing technical capacity. Education, outreach, links to research labs. Building the technology base through strategic R&D programmes.

Industry-led research partnerships, co-funding programmes, technology transfer initiatives.

Financing environmental technologies through tax breaks, grants, seed & venture capital etc. Funding and incentive instruments which are carefully designed to avoid windfallgains.

Accelerating technology diffusion. Effective incentives, targeted sectors, locally oriented programmes, and integratedservices.

Promoting effective knowledge transfer through networks, collaboration and infrastructures.

An integrated and strategic science system supported by tools such as environmental scanning.

Policy Framework for promoting GreenIndustrial Park inBangladesh

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5) Industry-LedInitiatives

Supporting facilities which raise awareness and build capacity. Enhancing firmcapability through training facilities and demonstration programmes.

Promoting Environmental Management Systems. Government-businesspartnerships which seek to foster improved environmental management.

Industry-based standards. Eco-labels and certification. Life cycle analysis. Identifying pollution and waste reduction initiatives throughout

a product’s life cycle. Greening the supply chain. Promoting Corporate Environmental Responsibility. Designing incentives that

promote pro-active behaviours, rather than opportunities to avoid complianceissues.

Policy Framework for promoting GreenIndustrial Park inBangladesh

Way Forward

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Multiple benefits of Green Industrial Park:

• Reduced raw material (i.e. commodity) costs,• Increased security of supply,• Reduced pollution risks and costs,• Lower cost of capital,• Increased employee appeal and engagement,• Increased awareness of emerging smart technologies,• Enhanced innovation capacity and skills, and• Improved brand recognition and competitive position in markets• Pathway to long term economic growth and sustainable development• Green industrial park is achieving improved human well-being and social equity while

simultaneously diminishing environmental risks and reducing ecological scarcities.• Green industrial park transforms manufacturing and allied industry sectors by

introducing more efficient/productive/ responsible use of raw materials so that theycontribute more effectively to sustainable industrial development.

• It is about doing more, and better, with less.• Green Industry is thereby the sector strategy for the realization of Green Economy, and

ultimately, sustainable development.

ThankYou

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