Industrial Water Policy nears finalisation: Rizwana Hasan

The government is in the stage of finalising the Industrial Water Use Guidelines, a long-awaited policy framework to regulate groundwater extraction by industries, said Syeda Rizwana Hasan, adviser to the interim government on environment, forest, and climate change.

Speaking at an event titled 'Fostering Sustainable Investment', organized by the American Chamber of Commerce in Bangladesh (AmCham) on Monday, the adviser said that under the forthcoming guidelines, industries will no longer be allowed to extract groundwater without restrictions or cost, as has been the case for many years.

"The policy does not mean industries have to start paying for groundwater immediately, but over time, they must bear the cost and reduce consumption," Rizwana stated.

To foster a sustainable investment environment, she emphasised the need for industries to adopt responsible practices-such as recycling and reducing the use of electricity, water, and chemicals.

"Once industries start paying for water, they will use it more responsibly," she noted, warning that if resource-intensive economies continue unchecked consumption, global sustainability frameworks will fail to deliver results.

Commending the textile sector for some of its innovations, she highlighted waterless dyeing models as examples of progress toward sustainability. She also called for the urgent finalisation of a binding chemical management regulation for the sector.

"We are waiting for a legally enforceable chemical management rule for the textile industry. It is a public health imperative," she stressed.

Commenting on concerns around potential tariff hikes by the United States, the adviser said there is no reason to fuel panic. "The government is taking all necessary steps, and such issues should not be sensationalised repeatedly," she added.

On energy reforms, Rizwana welcomed the government's newly-adopted Renewable Energy Policy, which targets 30 per cent of total energy consumption from renewable sources by 2030.

"Bangladesh's journey toward energy sovereignty must begin now. Every government office will be required to install renewable energy facilities," she said.

Reflecting on the post-Rana Plaza recovery, she said, "Many predicted the collapse of the garment sector. But through coordinated efforts by the government and businesses, the industry bounced back. If we move forward together, we can overcome all challenges."

She also underscored the importance of shared responsibility in the cost of sustainability. "It should not be the producer's burden alone. Buyers must also share the cost fairly," she added.

In his keynote address, Fehmi M Yüksel, Chief Transformation Officer at Recover, said Bangladesh's readymade garment (RMG) sector could increase its growth rate by 10-12 per cent through greater adoption of sustainable practices.

"Sustainability can also boost brand profitability by up to 6 per cent," he added, noting that 85 per cent of leading global brands have already set sustainability targets for their supply chains.

He further pointed out that recycled cotton in Bangladesh holds significant potential in terms of value creation, import substitution, foreign investment, employment generation, and broader economic impact.

AmCham President Syed Ershad Ahmed called for constructive dialogue to resolve tariff-related concerns. "This is not a challenge unique to Bangladesh. As our capacity grows, so will our bargaining power," he said.

He also mentioned ongoing discussions with relevant authorities, including BIDA, regarding cotton imports from the US and the need for customs reforms.

The event brought together business leaders and stakeholders from various sectors to deliberate on the challenges and opportunities surrounding sustainable investment in Bangladesh.

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