Coordinating economic growth with SDGs

It is now or never for this country to seek a change in its economic course as Bangladesh espouses a new mode of governance under an interim government headed by Nobel- laureate microfinance pioneer Dr Muhammad Yunus. Whereas Bangladesh has indeed been a real miracle in terms of achieving striking economic growth during the last couple of decades, particularly with such strong industries as textiles and the rise of small and medium enterprises, this has often been at the cost of environmental sustainability. The new government, which took over after the fall of Hasina regime in an uprising, now has a very good opportunity to frame a transformational agenda in which economic growth to be pursued aligned with environmental sustainability.

It envisages a balance of business development with ecological preservation, more corporate responsibility, the usage of green technologies, and the introduction of comprehensive government programmes for the combat of climate change. This alignment will propel Bangladesh to the forefront in terms of sustainability across South Asia and enhance its standing globally.

Sustainability and economic growth: a strategic imperative: Bangladesh's rapid economic growth has been propelled by the ready-made garment (RMG) industry and agricultural exports, with these sectors contributing significantly to the national GDP or gross domestic product. As of recent data, the RMG sector accounts for around 11 per cent of the country's GDP and over 80 per cent of total export earnings, cementing its position as the backbone of Bangladesh's economy. On the other hand, agriculture contributes approximately 12.9 per cent to the GDP and provides employment to about 40 per cent of the workforce, supporting millions in rural areas. These sectors have collectively lifted millions of people out of poverty, transforming Bangladesh from one of the world's poorest nations into a rising economic power.

However, this economic progress has come at a high environmental cost, including deforestation, air and river pollution, biodiversity loss, and rising carbon emissions. Industrial waste from the apparel sector has polluted rivers, agricultural practices have led to soil degradation, and urbanization has increased air pollution. If left unaddressed, these environmental issues could undermine long-term prosperity. As climate risks escalate globally, Bangladesh finds itself at a crossroads: how to sustain economic growth while transitioning toward sustainable development.

As global companies increasingly seek partnerships with firms committed to Environmental, Social, and Governance (ESG) practices, Bangladesh must reform its industrial policies to stay competitive. International buyers, especially in the apparel sector, are placing growing importance on sustainable sourcing, reducing emissions, and labour rights. Therefore, embedding sustainability into business models will enable the nation to attract foreign investments and retain consumer trust in international markets.

Business opportunities in sustainability: Sustainability is no longer just a regulatory requirement but a business opportunity. Companies that adopt sustainable practices often enjoy enhanced market access and reputation benefits. This is particularly relevant for Bangladesh, where sustainability can become a competitive advantage.

The spinoffs are enumerated as (1)

Access to international markets and Investments: Global investors and multilateral organisations, such as the World Bank and the IMF, increasingly allocate funding based on ESG compliance. A commitment to sustainability will ensure that Bangladesh's businesses have access to these financial resources. Additionally, eco-conscious consumers across Europe and North America prefer products from sustainable sources, providing an incentive for companies to adopt greener production methods. (2) Reduction in operational costs: Sustinable practices such as energy-efficient manufacturing, water recycling, and waste reduction can lead to significant cost savings over time. For instance, solar-powered garment factories are already operational in Bangladesh, setting an example for other industries to follow. By reducing reliance on fossil fuels, companies can not only lower their carbon footprint but also shield themselves from rising energy prices. (3) Agri-business innovation: The agriculture sector holds immense potential for green innovation. Shifting toward organic farming, adopting climate-smart agriculture, and reducing use of chemicals will enhance productivity while minimizing environmental harms. Such practices can position Bangladesh as a leader in sustainable agricultural exports, tapping into niche markets for organic produce globally.

Regulatory reforms and government support to sustainability: The success of sustainable development will require robust policy frameworks and regulatory oversights. The new Yunus administration is expected to implement reforms that encourage businesses to align with climate goals while holding them to account for their environmental impact. The modalities are as follows: Green tax incentives: Green technologies, often referred to aas clean technologies, encompass innovations that aim to reduce environmental impacts and promote sustainable development. They focus on minimizing carbon emissions, conserving natural resources, and reducing pollution, ensuring that economic activities align with environmental goals. These technologies range across multiple sectors-from renewable energy systems (solar, wind, and hydropower) to energy-efficient practices, waste management solutions, and eco-friendly manufacturing processes. Bangladesh has a huge resource of renewable energy. As such, offering tax breaks to companies that adopt sustainable practices will incentivize more businesses to transition toward green technologies.Public-private partnerships: Collaborations between the government and the private sector will play a pivotal role in scaling sustainable innovations. Public funding can catalyze the adoption of renewable energy and circular economy initiatives in industries like RMG.National carbon budget: A carbon budgeting mechanism can help industries plan and track their emissions reduction efforts, ensuring that Bangladesh stays on course to meet its climate commitments under the Paris Agreement.

Overcoming challenges to sustainable development: Notwithstanding the bounteous benefits, the path to sustainability does not exist without challenges. The transition to green business models may involve upfront costs and require a shift in mindset across industries. SMEs, which form the backbone of Bangladesh's economy, may struggle with the financial burden of adopting sustainable practices without adequate government support.

Capacity building will also be essential. Many businesses in the country lack the technical expertise to integrate ESG principles into their operations effectively. In this regard, the government can facilitate training programmes and knowledge-sharing platforms to help enterprises embrace sustainability. Moreover, rural areas may face difficulties in adopting sustainable agricultural practices due to resource constraints. Addressing these disparities will require targeted interventions, including subsidies for farmers and the promotion of green technologies in agriculture.

A promising future of green prosperity: The intersection of economic growth and sustainability presents Bangladesh with both challenges and opportunities. While the country's reliance on RMG and agriculture remains central to its economy, these sectors must evolve to align with the principles of sustainable development. The RMG sector, which has driven Bangladesh's economic rise, must now evolve into a model of sustainable manufacturing. Factories that implement renewable energy, waste reduction technologies, and fair labour practices will not only comply with international standards but also enjoy greater market access.

Similarly, the agriculture sector can become a driver of sustainable development through organic farming, climate-smart practices, and eco-friendly exports. Bangladesh's efforts will not go unnoticed on the global stage. The integration of sustainability into business practices will enhance the country's reputation as a reliable trade partner and a responsible global citizen. As UN Secretary-General António Guterres has emphasized, "Climate action is not a burden but an opportunity." Bangladesh's commitment to sustainable development is a testament to its ability to balance economic ambitions with environmental stewardship.

The new Yunus administration's vision for green prosperity reflects a forward-thinking approach, acknowledging that environmental responsibility is essential for long-term growth.Through strategic reforms, green innovation, and international collaboration, Bangladesh can unlock new avenues of economic progress while safeguarding its natural resources for future generations. As the nation embarks on this transformative journey, it sends a clear message to the world: sustainable development is not a compromise but a necessity.

With visionary leadership, Bangladesh is poised to turn environmental challenges into opportunities-emerging not only as a thriving economy but also as a champion of sustainable business practices in the global arena.

Leveraging green technology to sustainability: Green technologies are pivotal in optimizing resource use while minimizing environmental impact, driving sustainable growth. They promote efficient use of natural resources and reduction in carbon footprints across industries. For example, as mentioned earlier, solar panels and wind turbines harness renewable energy sources without releasing harmful emissions, contributing to the diversification of the energy sector. Likewise, green building technologies focus on energy-efficient designs, using eco-friendly materials to cut energy consumption while creating sustainable infrastructure.

In the transport sector, electric vehicles (EVs) significantly reduce air pollution, offering a cleaner alternative to fossil fuel-powered vehicles. Meanwhile, innovations such as biodegradable packaging and materials aim to replace single-use plastics, addressing the environmental damage caused by waste accumulation. These technologies ensure that sustainability efforts extend across everyday life and industrial processes.

Climate-smart agricultural technologies-including precision farming powered by drones, sensors, and data analytics-enhance productivity while minimizing water consumption and chemical use. Circular- economy models in manufacturing foster recycling and reuse, curbing industrial waste and reducing dependency on raw materials. This not only mitigates pollution but also supports economic efficiency by extending product life cycles and lowering production costs.

The adoption of green technologies is essential for mitigating climate risks and unlocking long-term economic benefits. These benefits include energy cost savings, enhanced access to international markets that prioritize sustainability, and alignment with global Environmental, Social, and Governance (ESG) standards. In a world rapidly transitioning toward low-carbon economies, green technologies offer developing nations, including Bangladesh, an opportunity to achieve sustainable economic growth by way of addressing environmental challenges.

The role of Yunus government in promoting sustainability: The government is supposed to lead the way in the creation of an enabling environment for sustainable business practices. Under regulatory frameworks lie the provision of incentives towards green investment, penalties against polluters, and support for the uptake of renewable energy sources-all of which will be needed if alignment in business with environmental objectives is to be ensured.

The interim government has already started showing intent on reforms with the establishment of key commissions in various sectors. Two more commissions on environmental policy and sustainable economic development could give the lead that would be required for integrating sustainability into national development plans.

Bangladesh needs to be more active in the regional and international collaboration of efforts toward sustainability. All the countries of South Asia are similarly facing environmental challenges, so cross-border cooperation in river management, renewable energy, and air quality control will benefit all equally.

Participation in initiatives such as SAARC, along with a partnership with organisations like the IFC, will further strengthen Bangladesh's position in the global sustainability arena. It will also be important to foster partnerships with Bangladesh's diaspora for access to expertise, investment, and technological innovation.

Way forward: sustainable Bangladesh and key priorities:

To successfully transition Bangladesh toward sustainable economic growth, the interim government led by Dr. Yunus must adopt a multidimensional approach rooted in policy coherence, effective monitoring, and public awareness. Each of these pillars will ensure that the nation's economic growth aligns with environmental goals, fostering both inclusive development and climate resilience. Below is an expanded exploration of these critical priorities.

Policy coherence: aligning economic and environmental goals

Policy coherence is essential to ensure that various economic, environmental, and social policies work in harmony rather than contradicting one another. In the context of sustainability, policy coherence means balancing industrial growth with environmental stewardship to ensure that efforts to boost the economy do not inadvertently harm the environment.

* Integration of ESG Frameworks: Economic policies must integrate Environmental, Social, and Governance (ESG) principles across industries like agriculture, RMG, and technology. For example, encouraging investments in renewable energy will not only reduce carbon emissions but also create new business opportunities and jobs.

* Sectoral Collaboration: Effective policy coherence involves collaboration between multiple sectors, such as finance, agriculture, education, and manufacturing. Each sector's growth plans should complement the broader national objectives for sustainable development.

* Minimizing Policy Conflicts: The government must review existing policies to eliminate contradictory measures-for instance, ensuring subsidies for green technologies do not overlap with incentives for fossil fuel industries. Policy conflicts often delay progress, creating bottlenecks in achieving sustainable outcomes.

Coherence will also help avoid short-term trade-offs-such as choosing between environmental sustainability and economic growth-by demonstrating that sustainable practices can drive long-term prosperity.

Monitoring and evaluation: ensuring accountability and flexibility: Monitoring and evaluation (M&E) are crucial mechanisms to track the effectiveness of sustainable initiatives and make necessary adjustments in real time. The government's sustainability efforts must be data-driven and transparent to maintain public trust and attract foreign investment.

* Performance Metrics and KPIs: It is essential to establish Key Performance Indicators (KPIs) to evaluate progress in areas such as carbon emissions reduction, energy efficiency, and social equity. For instance, monitoring the shift toward solar and wind power will indicate how well Bangladesh is transitioning to clean energy.

* Impact Assessments and Course Corrections: A continuous feedback loop should be built into government programs, allowing for timely course corrections. This approach ensures that when policies are not delivering expected outcomes, adjustments can be made quickly without derailing broader goals.

* Involving Independent Auditors and Think Tanks: Independent institutions-such as universities, NGOs, and think tanks-can assist in monitoring government programs objectively, ensuring that evaluation processes are free from political influence.

This M&E framework will also create the accountability needed to satisfy international donors and development partners, whose financial support will hinge on measurable results aligned with global climate goals.

Public awareness campaigns: building a culture of sustainability: Achieving sustainability requires more than just government action; it demands the participation of citizens, businesses, and educational institutions. Public awareness campaigns are crucial for fostering a culture of responsibility and encouraging stakeholders to adopt sustainable practices.

* Educational Institutions as Change Agents: Schools and universities must integrate sustainability and climate education into their curricula. Students should not only learn about environmental challenges but also engage in practical solutions such as recycling, energy conservation, and water management.

* Business Sector Involvement: The private sector plays a critical role in promoting sustainable practices. Campaigns targeting corporate leaders should emphasize the economic benefits of green technologies and the competitive advantage of sustainability in global markets.

* Community Engagement and Grassroots Movements: Local communities must be empowered to take ownership of sustainability initiatives. Programs that encourage citizens to reduce waste, conserve energy, and adopt eco-friendly behaviors will build momentum for broader national efforts. Community-level programs-like urban rooftop farming or recycling initiatives-can have a ripple effect, promoting widespread change.

* Media and Civil Society Collaboration: Media outlets and civil society organizations can amplify sustainability campaigns through awareness drives, documentaries, and events. Engaging these groups will help shape public opinion, ensuring widespread participation in sustainability efforts.

By engaging every sector of society, the interim government will ensure that sustainability becomes not just a government initiative but a shared national mission.

A collective effort for sustainable progress: For Bangladesh to achieve meaningful and lasting progress, policy coherence, monitoring, and public engagement must work in tandem. Dr. Yunus's interim government has the opportunity to set a precedent by creating a sustainable roadmap that integrates economic growth with environmental responsibility. Aligning policies across sectors, ensuring transparent evaluations, and engaging the public will lay the foundation for long-term prosperity and climate resilience.

In the words of Dr. Yunus:

"Sustainability is not only about saving the planet, but about creating a world where all human beings can flourish."

This vision must guide the interim government as it builds Bangladesh's future-where economic growth serves all citizens, businesses thrive, and the environment is protected for generations to come.

It is in this alignment of green technology, good governance, public awareness, and government policy that a roadmap for sustainable progress lies. Success by Bangladesh in this endeavour could well serve as a blueprint for other nations in South Asia and beyond to show clearly that economic prosperity and environmental stewardship are not mutually exclusive but self-reinforcing.

In the words of environmentalist Paul Hawken, "Sustainability is not about doing less harm; it's about doing better." Bangladesh can do better and lead by example to show the world how sustainable business development can help build a brighter and greener future for all.

Dr. Serajul I. Bhuiyan is a professor and former chair of the Department of Journalism and Mass Communications, Savannah State University, Savannah, Georgia, USA

Dr. Nazrul Islam is a Chair Professor of Business & Director of Research Degrees (PhD/MPhil), and Associate Director for UEL Centre of FinTech, University of East London, UK.

Contact email: [email protected]; [email protected]