Bangladesh’s garment and textile sector is facing one of its most severe trials as an acute energy crisis paralyzes a significant portion of manufacturing operations. The worsening shortage of natural gas has not only slowed sewing plant operations but also triggered total disruptions in upstream processes such as fabric dyeing, washing, and drying. Consequently, industry associations estimate that national garment production has plummeted by up to 40 percent, forcing exporters to seek shipment deadline extensions from international buyers.

The root of the crisis stems from disruptions in imported liquefied natural gas (LNG) infrastructure, following a fire at one of the country’s two main floating terminals last July. Although partial operations have resumed, persistent gas shortages and rolling power cuts have forced the government to enforce strict energy conservation measures. For the ready-made garment industry, deep-seated reliance on fossil fuels has created profound structural vulnerabilities.

Based on recent research from the Centre for Policy Dialogue (CPD), Bangladesh's garment sector is trapped in a decarbonization catch-22. On one hand, factories heavily depend on gas to generate the thermal energy essential for fabric dyeing—an energy-intensive stage that cannot be fully replaced by rooftop solar power. On the other hand, global brands are increasingly aggressive in demanding low-emission standards across their supply chains, placing Bangladesh's export positioning under the shadow of fierce competition from regional neighbors like India, Pakistan, and Vietnam.

Green transition efforts are further hindered by financial obstacles and a wide technological gap between large-scale and small-scale factories. Smaller facilities frequently struggle with aging machinery and limited access to financing. While specialized green funding initiatives, such as those launched by H&M, are beginning to make inroads, industry stakeholders are urging the government to align its fiscal policies, including the elimination of taxes on renewable energy investments.

Ultimately, for Bangladesh’s garment sector, decarbonization is no longer merely a tool to meet international environmental emission targets. Instead, transitioning toward a clean and efficient energy system has become a matter of survival to sustain market competitiveness and ensure factories can keep operating amidst mounting global uncertainty.