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Syed Kollol

The social perception and purchase behaviour of the western society has a direct impact on less
developed and developing countries like Bangladesh. From the late 70's till mid 90's the western world
was much more focussed on the social issues. We have seen the impact of developed countries social
consciousness on our garment industry. Working environment, wage rate and specially child labour in
the industry emerged as the source of competitive advantage among the garment exporting nations.
As a result Bangladesh had to act on these issues to sustain in the world market. Now the child labour,
wages rate and working environment related issues of the less developed countries (who are the sub
contractors) are believed to be resolved. The western world has now shifted their focus towards
environmental issues related with Carbon Emission. This is a moment for the less developed countries
like Bangladesh to activate their carbon offsetting programmes to sustain in the world market. This
short write up is about the "go green" and the future of Bangladesh foreign trade.

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Business at macro and micro level: In the western world "Go Green" is becoming an important part of
the corporate agenda. Companies are now also under increasing pressure from institutional
shareholders, insurance companies, pressure groups, the government and the media, to demonstrate
their environmental responsibility by reporting their carbon offsetting activities. The companies also
started to respond accordingly. It is very hard to find any company not publishing their carbon
offsetting projects along with the corporate financial report. They are doing this in the sustainability
report. Till now most of the companies taking carbon offsetting activities voluntarily but in countries
such as Australia and UK all the listed companies are bound to put their sustainability report in the
corporate website. Companies like Rio Tinto, BHP Billiton, Nike, and M&S announcing their
responsibility for the green world. Virgin airlines(Virgin Blue Airlines Australia) boss Richard Branson
has pledged about $6 billion to developing bio-fuel for his airline fleet and promises that his limousine
company will become carbon neutral. Skybus, the company that takes passengers to and from
Melbourne Airport, was the first Australian public transport operator to become carbon neutral by
planting 5488 native trees to offset carbon emissions from its bus fleet.

‰ther companies to take action to measure and reduce to net zero their unavoidable emissions include
Mazda, Avis, and the United Nations itself (certain key meetings went CarbonNeutral).

v 

 
 "Go green" movement is growing at such fast rate that even the pop and
rock musicians are announcing their responsibility for the environment. The legendary U2 and Bono
announced its latest album carbon neutral. The heavy metal band Pearl Jam announced the creation of
its Carbon Portfolio Strategy on 07/11/2006. The centrepiece of the strategy is a total donation of
$100,000 to nine different non-profit "doing innovative work around climate change, renewable
energy, and the environment," including the American Solar Energy Society, the Bonneville
Environmental Foundation, and the Cascade Land Conservancy. ‰ther contemporary bands like Dave
Matthews Band, Alanis Morissette, and Sting already announced their projects for carbon offsetting.
This is very important because these bands have enormous influence in the western culture. Like
movie stars, rock stars also influence heavily everyday life style of teenagers and middle aged
generations.

Cold Play while launching its breakthrough album, A Cold Rush of Blood to the Head, said it would
offset energy use and carbon emissions by planting 10,000 mango trees in the dry Indian state of
Karnataka.

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  Sports and game activities are also responsible for Co2 emissions as thousands
of people drive to watch a game, international teams fly to a venue and thus generate extra C‰2.
Australian Football League (AFL) declared that it would offset its C‰2 and all the AFL venue will be
carbon neutral by 2009. The AFL chief Andrew Demetriou says that by 2009, the AFL will be carbon
neutral by offsetting its greenhouse emissions through investment in renewable energy and energy
efficiency industries such as solar and wind power. The Winter ‰lympics in Salt Lake City was climate
neutral.
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  The grocery shoppers' recent behaviour in the western countries also shifted
towards "go green". According to Hong Kong Trade development council green consumers who
actively seek out and buy green products are on the rise, accounting for more than 20 percent of the
US and the UK populations, and some 50 percent in western Germany. Grocery chains like Coles
express, Safeway of Woolworth's stores introduced green recyclable shopping bags in their premises.
Till now there are seven different types of bags among which "go Green" bags are most popular.

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 The retailer giant Marks & Spencer announced 17 January 2007 to spend £200 million
"going green", as it becomes the frontrunner among British retailers seeking favour with increasingly
environmentally conscious shoppers. Marks & Spencer said it would spend the money over the next
five years to make sure its packaging and clothing was biodegradable or compostable and that none of
its waste would be dumped in tips. It will also label all products on its shelves that have been flown in
from growers and trial using food waste to power its stores, as it aims to become carbon neutral by
2012. According to chief executive Stuart Rose, "Every business and individual needs to do their bit to
tackle the enormous challenges of climate change and waste. We are calling this plan A because there
is no plan B". Retailer Tesco announced it would halve the amount of energy its stores use by 2010. It
also launched a £100 million fund to increase energy efficiency and cut emissions. Tesco CE‰ declares
to change its supply chain to ensure carbon efficient business.

 
 

Politically the need for putting a green resolution in a country's policy has become a prime issue.
Australian opposition party is increasingly pressurising to adopt green policy as soon as possible.

CNN reported on 17 Jan 2007 that the European Union would urge China to do more to cut
greenhouse gas emissions and cooperate on energy security when it launches negotiations on a broad
new strategic partnership with Beijing.

The leaders of the developed countries are increasingly concerned with Global Warming issue. ‰n
February 16, 2005 a legally binding international agreement among 40 developed and developing
nations came into force named as Kyoto Protocol (followed by early '97 agreement). Under this
agreement the related countries will reduce its green house gas emissions by 2012. Different countries
are set to different targets, such as Australia is set to a target to reduce its green house gas 108
percent by 2012.

The European Union's Emission Trading Scheme (EUETS) came into force on 1 January 2005 as a way
for the EU to meet its commitments under the Kyoto Protocol. It imposes emission caps on certain
sectors (generally the heavy emitters such as power generation, cement manufacture etc.). It also
establishes a trading platform, so that regulated parties and others can trade carbon to ensure that
the reduction targets are met. The first phase of the EU-ETS runs from 2005-2007. The second phase
will run from 2008-12 -- in parallel with the Kyoto Protocol. It is likely that other sectors, including
transport, will be included in the second phase.

‰ver 40 leading US companies have signed up to the Chicago Climate Exchange to voluntarily enter
into a cap and trade system similar to the EU's.

 




 

Hong Kong, China and some other developing countries are making use of voluntary schemes to
highlight the green attributes of their products for marketing purposes. These include making green
claims, or self-declared environmental claims, for their products, including claims about the use of
environmentally-friendly materials in clothing and handbag items. Some have applied environmental
labels to their products, such as Green Seal and Energy Star labels in the US, EU Eco-labels and
German Blue Angel labels, and the Japanese labels Eco Mark and Eco Leaf. These voluntary claims and
labels can help consumers identify green products, while enabling suppliers to tap the green market in
a more effective way.

However to claim as a "green" company is not very difficult. There are many ways as stated above.
But the easiest way for Bangladeshi companies is Mass Plantation.
How to measure Co2 emissions: There are many internationally recognized environmental
organizations that are using carbon matrix to compute Co2 pollution. According to the matrix
depending on where you live in the world, the average human can produce up to 22.0 tonnes of
Carbon Dioxide (C‰2) each year. That's the equivalent of 30 trees which would need to be planted to
offset your personal C‰2 emissions. The table shows some C‰2 emission average in using various
types of cars:

 


  1. If a garment factory owner employed 1500 labours and staff in
his factory, then we assume on average the C‰2 emission from this factory will be 22.0 tonnes x 1500
= 3300,000 tonnes. If for one person the factory needs to plant 30 trees, then the total number of
trees will be 110,000, which will create huge impact on Bangladesh environment. Bangladesh will be
green very soon if carbon offseting plan by plantation could be imposed on factories.

2. Garment factory owners will be benefited from this not only by showing internationally that they are
green, but also, these plants after few years will give them huge return.

3. Tree planting to offset the carbon emissions and energy use will create jobs.

4. There is a possibility that a new industry for timber products will emerge as there will be high
densed forestry.

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As the whole world is shifting their focus towards green consumerism, it's time for Bangladesh
government to act on this issue quickly before it's too late. Bangladesh government should do the
following:

1. Introduce solar energy systems for power. Bangladesh has an electricity deficit. Using solar power
will contribute both ways -- going green and reducing deficits. Government can offer credit facility for
using solar power and thus ban use of traditional power in shopping malls and groceries in
metropolitan areas.

2. Bangladesh government can offer tax offsets against carbon offsetting plans for export oriented
companies.

3. Bangladesh needs to have a green policy for the sake of the global warming issue as well as for
itself.

As global warming emerged as a burning issue and a big challenge, there is no way that Bangladesh
can keep mum on them. To exist, to sustain and to lead Bangladesh must have a green policy as early
as possible. Delaying on this issue will only cause losing global competitiveness and increasing
poverty. Because the message is clear, "G‰ GREEN ‰R G‰ ‰UT".