The Case for Just Transitions in the Energy, Agricultural, and Ready-Made Garments Sectors in Bangladesh
Summary
The report argues that while Bangladesh must transition to a low-carbon economy to combat extreme climate vulnerability, this process must be 'just' to avoid marginalizing vulnerable workers and communities. It examines three key sectors: the ready-made garments (RMG) sector, which contributes 12% of GDP but faces severe environmental and labor issues; the energy sector, which is heavily dependent on gas (60%) and oil (30%) but aims for 30% renewable energy; and the agricultural sector, where 48.4% of the population is employed and faces significant losses from cyclones and sea-level rise. The document emphasizes that a just transition requires cross-ministerial coordination, reskilling programs, inclusive education, and expanded climate finance to support those displaced by green reforms.
Key insights
- The ready-made garments (RMG) sector is a critical economic driver, contributing 12% of Bangladesh's GDP and employing 4 million people, 85% of whom are women from impoverished rural backgrounds. However, the sector causes significant environmental damage, such as the discharge of untreated wastewater from dyeing factories, and suffers from poor working conditions and limited job security.
- Bangladesh's energy supply is heavily reliant on fossil fuels, with gas accounting for approximately 60% and oil 30%. While the government aims to increase renewable energy to 30% of the energy mix under the Mujib Climate Prosperity Plan, the transition faces challenges including high initial investment costs, a lack of infrastructure, and data gaps regarding energy demand and consumption.
- The agricultural sector, employing 48.4% of the population and accounting for 18% of GDP, is highly vulnerable to climate change. Tropical cyclones cause an annual economic loss of $1 billion, and by 2050, climate variability could result in the loss of one-third of agricultural GDP. The shift toward commercial agribusiness has further marginalized small-holder farmers and women, who often lack land ownership and financial resources.
- A successful just transition in Bangladesh requires systemic support through education and finance. This includes integrating sustainable development and green business into academic curricula and utilizing tools like the Bangladesh Climate Change Trust Fund and green banking directives—which require financial institutions to allocate at least 5% of loan portfolios to renewable energy—to support SMEs and households.
- Implementation of a just transition is hindered by significant socio-economic barriers, including a large informal sector employing 87% of the labor force and extreme income inequality, where the top 10% of workers control nearly 60% of the wealth.
Cite the original document
- APA
- Mortuza, S., Ahmed, M. U., Selim, S. A., Irfanullah, H. M., Sultana, R., Shah, P., Jamil, R., & Islam, S. (2023). The Case for Just Transitions in the Energy, Agricultural, and Ready-Made Garments Sectors in Bangladesh. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2023/07/FINAL_CS_S2S_Report-Just-Transition-Bangladesh_DEF-1.pdf
- Chicago
- Mortuza, Shamsad, Minhaz Uddin Ahmed, Samiya A. Selim, Haseeb Md. Irfanullah, Rumana Sultana, Pinki Shah, Raihan Jamil, and Shegufta Islam. The Case for Just Transitions in the Energy, Agricultural, and Ready-Made Garments Sectors in Bangladesh. Climate Strategies, 2023. https://climatestrategies.org/wp-content/uploads/2023/07/FINAL_CS_S2S_Report-Just-Transition-Bangladesh_DEF-1.pdf.
- Wikipedia
- {{cite report |last1=Mortuza |first1=Shamsad |last2=Ahmed |first2=Minhaz Uddin |last3=Selim |first3=Samiya A. |last4=Irfanullah |first4=Haseeb Md. |last5=Sultana |first5=Rumana |last6=Shah |first6=Pinki |last7=Jamil |first7=Raihan |last8=Islam |first8=Shegufta |title=The Case for Just Transitions in the Energy, Agricultural, and Ready-Made Garments Sectors in Bangladesh |publisher=Climate Strategies |date=2023 |url=https://climatestrategies.org/wp-content/uploads/2023/07/FINAL_CS_S2S_Report-Just-Transition-Bangladesh_DEF-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{mortuza2023case, author = {Mortuza, Shamsad and Ahmed, Minhaz Uddin and Selim, Samiya A. and Irfanullah, Haseeb Md. and Sultana, Rumana and Shah, Pinki and Jamil, Raihan and Islam, Shegufta}, title = {{The Case for Just Transitions in the Energy, Agricultural, and Ready-Made Garments Sectors in Bangladesh}}, institution = {Climate Strategies}, year = {2023}, url = {https://climatestrategies.org/wp-content/uploads/2023/07/FINAL_CS_S2S_Report-Just-Transition-Bangladesh_DEF-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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