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Article

1 Feb 2026

Author:
New Age

Bangladesh: Global fashion brands failing to ensure fair pricing to sustain green transition

"RMG makers seek fair prices from buyers to sustain green transition" 1 February 2026

Bangladesh’s readymade garment manufacturers urged global apparel brands to ensure fairer pricing for environmentally compliant factories to sustain the green transition.

They said that substantial private investment in green production was yet to yield meaningful financial returns, despite improved global branding and order priority...

Industry insiders said that one factory after another was securing top-tier LEED green certification, but buyers must now ‘step up’ by rewarding sustainable producers through better prices and long-term financial incentives.

BGMEA director Faisal Samad said that establishing a green factory required significant capital investment, which manufacturers were currently bearing largely on their own.

‘It is good for our environment, but now buyers should provide some financial rewards to encourage others,’ he said, calling on global brands to take the initiative to incentivise green transition across the supply chain...

‘Now it is time for both buyers and the government to play their part,’ he said.

He noted that although the Bangladesh Bank had a Green Transformation Fund, accessing it remained difficult due to bureaucratic hurdles, urging the authorities to simplify the process so that more factories could benefit...

‘LEED certification is helping our branding and global image, but financially it has not brought real benefits yet,’ he said.

He said that manufacturers had repeatedly explained to buyers that while they were investing heavily in sustainability, the prices offered had not increased accordingly.

Although green factories are getting priority in orders, fair pricing must be ensured, he said, adding that the existing reduced corporate tax rate for green factories should not be withdrawn after its initial tenure ends...

BGMEA senior vice-president Inamul Haq Khan said that a green factory required millions of dollars in investment and that buyers must offer tangible returns, not just appreciation...

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