Bangladesh must focus on seven interconnected priorities to accelerate its transition towards a more equitable, low-carbon, and climate-resilient textile, apparel and construction industries, according to a new report.

The report outlined a clear path for the country to advance its development while mitigating climate impacts through the decarbonisation of industries and bolstering the resilience of workers and communities.

The interconnected priorities identified in the report by FSG—a mission-driven consulting firm commissioned by the Laudes Foundation and H&M Foundation—included climate change mitigation through the transition to low-carbon manufacturing, encompassing design, processes, and energy.

The utilisation of innovative processes that reduce on-site burning of fossil fuels, along with improvements in energy and material efficiency in existing processes, can help decrease fossil fuel consumption. This, the report noted, accounts for 83 per cent of emissions in the textile and apparel sector, and 80 per cent in the construction sector.

To address the remaining emissions from these sectors, which stem from electricity consumption from the grid, the report suggests a combination of grid decarbonisation and the transition to onsite renewable energy.

‘As the seventh most climate-vulnerable country, Bangladesh urgently needs to take adequate adaptation measures to mitigate risks of job losses, reduced competitiveness, and heightened vulnerability to climate shocks,’ said the report titled ‘Just Climate Transitions in Bangladesh – Accelerating Multistakeholder Action in Textile and Apparel and Construction Industries’ published on January 28.

Bangladesh is one of the fastest-growing economies globally, with industry at the heart of its growth, employing 12 million people and accounting for 34 per cent of its GDP.

The textile and apparel, and construction sectors together contribute 74 per cent of industrial GDP, employ 80 per cent of the workforce, and are responsible for half of industrial emissions. These vital sectors are therefore critical to the industrial transition in Bangladesh, the report notes.

Drawing on inputs from over 100 Bangladeshi and international stakeholders, the report presents ten scenarios—multiple potential futures that explore the full spectrum of possibilities, both positive and negative, within these sectors.

Two scenarios—Green Forest (sustainable fashion with low unemployment and competitive markets) and Green City (low-carbon, climate-resilient construction)—highlighted the full potential of industry transitions. These scenarios aimed to protect industry competitiveness and resilience, create quality jobs, and ensure fair outcomes for workers and their communities.

Other priorities includeed using sustainable inputs to reduce emissions from both upstream and downstream parts of the value chain, and mitigating transition risks as global and domestic demand shifts towards lower-carbon production and climate adaptation at the site and manufacturing hub levels.

The report highlighted that climate change-induced heat stress and high vulnerability to flooding weare already affecting worker productivity and causing supply chain disruptions in the textile and apparel sector in Bangladesh.

It also suggested the development of alternative sectors, along with skilling and social protection initiatives, to mitigate job losses. As the textile and apparel, and construction sectors transition, old roles would be phased out while new roles are created.

‘Investment in existing sectors with growth potential, such as jute, healthcare, hospitality and retail could create about 1.5 million new jobs in Bangladesh by 2030,’ it said adding which could be taken up by workers formerly employed in the textile and apparel and construction sectors, provided they receive skilling and placement support.

It stressed for availability of adequate and affordable housing, to improve worker resilience to transitions saying affordable housing, with basic facilities which can help improve the resilience of workers to the impacts of climate change, protecting the competitiveness of the industries they are employed in.

Development of innovative financing solutions and a prioritisation of the inclusion and agency of and accountability to workers involved are the other priorities.

‘Lived experience of workers in the planning and execution of decisions that could impact them is essential for successful implementation. For example, workers are best placed to advise on the implementation of adaptation measures to improve their own resilience and productivity. To ensure local support for transitions, where old roles become redundant, workers should be involved in planning and negotiating their own transitions.’

‘Philanthropy has the unique power to help us imagine ‘what can be,’ and this report offers a compelling blueprint for how to decarbonise leading Bangladesh sectors in a way that works for workers and communities,’ Leslie Johnston, CEO of Laudes Foundation said in a statement.

Just transitions cannot advance in silos and will require increased, complementary and concerted action between all stakeholder groups, both within Bangladesh and with supporting international partners.

While much has been put in place, significant gaps remain, and much wider uptake is needed to advance initiatives, said Leslie Johnston. She added that Bangladesh stands at an important crossroads, with an opportunity for real and lasting leadership that can secure a bright future for the country, its industries, and its people.