Harry Wood | 11 December 2024

In Conversation with ... Vidhura Ralapanawe

In an exclusive interview with Bangladesh Beyond the Label, Vidhura Ralapanawe, executive vice president of innovation and sustainability at Epic Group, shares his vision for how Bangladesh’s garment industry can align with global decarbonisation efforts. 

While the industry has taken steps in the right direction, Ralapanawe believes much more needs to be done. “While we see some progress, Bangladesh’s garment industry has yet to realise its full potential in decarbonisation. Our regional competitors are much further ahead, and there is an urgency to act,” he says.

Ralapanawe says larger companies in Bangladesh have started adopting rooftop solar systems, but significant opportunities remain untapped. “There’s so much more potential, especially in energy efficiency,” he says. “For example, upgrading steam systems alone could lead to efficiency gains of around 30 per cent. That would reduce reliance on imported LNG and deliver substantial economic benefits.”

At Epic Group, one of Bangladesh’s most prominent apparel exporters, sustainability has been a core focus. “We started small with rooftop solar systems, but now we’re scaling up. We’re building 3 MW in the next six months and another 6 MW over the next two years,” he says. 

Beyond solar, the company has implemented comprehensive energy efficiency measures. Ralapanawe continues: “We’ve improved our thermal energy systems, things like steam insulation, efficient irons, and better network design. On the electricity side, we’ve focused on compressed air systems and lighting. All of these efforts have reduced absolute carbon emissions, even as we expand. It’s also helped us manage the rising fuel and electricity costs in Bangladesh.”

Despite these advances, Ralapanawe identifies critical barriers to decarbonisation. “One of the biggest challenges is the lack of skills in low-carbon technologies. Our industry grew up in a time of cheap gas, and the focus was on low capital cost, not energy efficiency,” he explains.

Another issue is the limited availability of alternative fuels. “Unlike India, we don’t have a sustainable biomass infrastructure, and that needs to change.” Policy hurdles also stand in the way. “High duties on energy efficiency equipment and restrictions on net metering in BEPZA zones are major obstacles. But perhaps the biggest challenge is the will of industry leaders to prioritise decarbonisation,” says Ralapanawe.

Ralapanawe suggests decarbonization is essential for maintaining the competitiveness of Bangladesh’s garment industry. “Retaining high-value global customers increasingly depends on showing real carbon reductions,” he said. “Decarbonisation can also lead to cost savings, which will help businesses mitigate energy price shocks and reduce our national dependence on LNG imports.”

As Bangladesh is one of the countries most vulnerable to climate change, Ralapanawe says there is a pressing need for the garment industry to adopt climate resilience measures. We all stand to benefit. “We’ve started building flood protections at some of our facilities, but managing heatwaves will be a much bigger challenge going forward,” he tells us. “If we don’t handle this sensibly, the progress we’ve made in decarbonisation could be undone.”

Looking at the longer-term potential for renewable energy, Ralapanawe sees solar power playing a much larger role in the future. “Right now, solar is limited, but it will be a key part of our energy mix in the next two years,” he says. “We need to think beyond rooftops and explore larger systems on unused land and waterways. The government’s commitment to renewable energy is encouraging, but the state electricity grid also needs to shift to low-carbon energy.”

Ralapanawe believes the garment sector has a unique role to play in inspiring broader decarbonization efforts across industries. “As the largest employer and the biggest foreign income earner, we need to set the standard,” he states. He points to the Bangladesh Garment Manufacturers and Exporters Association’s (BGMEA) 30 per cent reduction target for 2030 as an achievable goal. “If we can commit to and deliver on this target, we’ll be in a position to lead by example. But to get there, we need a concrete roadmap and a sense of urgency.”

To accelerate decarbonisation, Ralapanawe calls for supportive government policies. He says: “First, reduce import duties on energy-efficient equipment. Second, remove restrictions on net metering in BEPZA zones. It’s absurd that factories are forced to turn off their solar systems during holidays. Third, enforce energy efficiency standards to stop low-efficiency equipment from being imported. Fourth, provide low-interest financing facilities for SMEs to adopt green technologies. And finally, we need large-scale power sector reform to enable faster adoption of renewables.”

All seem like perfectly sensible ideas and any Government officials reading this might want to take note.

Critically, Ralapanawe also highlights the economic benefits of renewable energy. “Investing in renewables doesn’t necessarily improve climate resilience, but it does enhance energy security. We’re far too dependent on imported fossil fuels, which makes us vulnerable to price shocks and drains state resources. The garment sector can help reduce this reliance by moving toward self-sufficiency,” he says.

Ending our conversation with a call to action, Ralapanawe reflects on the transformative potential of the garment industry. He concludes: “We’ve shown our ability to transform after the Rana Plaza tragedy. Now we need to do it again for decarbonisation. Global brands are increasingly scrutinising product carbon footprints, and those who don’t adapt will be left behind. But if we pull this off, it will be one of the most remarkable transformations in the world, earning Bangladesh immense goodwill and securing our place as a preferred manufacturing partner.”