PaCT - An Introduction

Mohan Seneviratne, Program Manager, PaCT

02 September, 2015

2Partnership for Cleaner TextilePartnership for Cleaner Textile 22Partnership for Cleaner Textile

Bangladesh houses 1,700 washing, dyeing, and finishing units

The textile sector accounts for 80% of total export revenue: $25 billion, and growing

IT ASPIRES TO BECOME A $50 BILLION INDUSTRY BY 2021

Snapshot

3Partnership for Cleaner Textile

The sector consumes 1,500 billion litres of groundwater per year. Groundwater levels are decreasing by 2.5 m/yr.Surface water is heavily polluted by the textile industry

But…Is it sustainable?

4Partnership for Cleaner Textile

Typically water consumption per kg of fabric is:

Besides, energy shortages hamper production and expansion

Water to process 1kg of fabric

Daily water usefor two people=

5Partnership for Cleaner Textile

THESE PROBLEMS CAN BE SOLVED

IF WE ALL TOOK OWNERSHIP AND WORKED TOGETHER

6Partnership for Cleaner Textile

The Partnership for Cleaner Textile (PaCT) was established in 2013

Addressing the Challenge

• Washing, Dyeing and Finishing Units

• Resource efficiency• Communities• Policies• Long-term sustainability• Clusters

7Partnership for Cleaner Textile

PaCT partners are committed to a sustainable,

competitive and cleaner sector

~200 Textile wet processing factories in Dhaka, and:

8Partnership for Cleaner Textile

Supports factories to

adopt Cleaner Production practicesContributes to sector transformation

How?

9Partnership for Cleaner Textile

Cleaner Production (CP)Minimizes resource consumption (water, energy and chemicals), and reduces waste, while maintaining or increasing production as well as profitability.PaCT target is to reach out to 500 companies.

By Embracing Cleaner Production

= Increases profitability

Cements buyer/supplierrelationship

10Partnership for Cleaner Textile

Challenges to factory adoption of CP

Lack of Awareness on Cleaner Production

Perception that cleaner production initiatives are a cost rather than an opportunity to save money

Do not know the ‘true cost’ of resource usage

Doing it only because brands are interested.

Identifying the ‘True Cost’ of Water

Partnership for Cleaner Textile 11

Heating costsHeating costs

Product wastage

Water/Wastewater treatment

Chemical costs

Pumpingcosts

Even though ground water is free – there are hidden costs such as…………

PaCT Process in Factories

Partnership for Cleaner Textile 12

Improvement Plan

Implementation of CP measures

Review & Monitoring Identifying

opportunities for savings in:

water, energy, chemicals

Awareness

Increased Profitability

Commitment from

factories/brands

PaCT

13Partnership for Cleaner Textile

Reduction in factory resource use from PaCTinterventions: Fakir Apparels Ltd.

On average, the 19 factories that have implemented in-depth CP reduced their water consumption from 200 L/kg to 150 L/kg of

fabric, a 25 % reduction

14Partnership for Cleaner Textile

Note: The graph shows 19 step-3 factories for which pre-PaCT and post-PaCT water consumption data (actual) is available for Mar ’15; the graph includes 2 factories for which overall water consumption has increased due to capactiy expansion

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 190

50

100

150

200

250

300

350

400

450

Impact of PaCT on water usage rates in factoriesin liters/kg of fabric, as at 01 March 2015

Before PaCT After PaCT Average Before PacT Average After PaCT

15Partnership for Cleaner Textile

Factory Results

Awareness building

331

In-depth Cleaner

Production

35

7.8

Million m3 of fresh water

saved

64,000

Tons of GHG avoided

$19 M

Investment facilitated

Factories reached to June 2015

Results to June 2015

Basic Cleaner Production

67

1.3 years

Average Payback

16Partnership for Cleaner Textile

Supports factories to

adopt cleaner productionContributes to sector transformation

17

How we help the sector

Make it easier to do Cleaner Production

Information Finance Service providers

Brands Clusters Government/stakeholders

Create demand for Cleaner Production

18Partnership for Cleaner Textile 18

Brands Clusters Government/stakeholders

Creating demand for Cleaner Production

19Partnership for Cleaner Textile

Decision Support Guidance Manual – helping Brands to make the right choices

Image source: Lindex

20Partnership for Cleaner Textile

• What• Platform to convene decision makers and stakeholders to create a

more favourable enabling environment for Cleaner Production

• Results• Bangladesh Central Bank committed to $500 million in green

financing for resource efficiency in the textile sector• Discussion underway on introducing tariffs for most polluting wet

processing chemicals

Government and stakeholders

Assess Baseline- GIS mapping/ WFA - Stakeholder mapping- Formation of Industry champion council

Mobilize Community- Community engagement by NGO to identify, prioritize issues- Jointly develop action plan to address issues; Develop KPIs- Advocacy and awareness raising using WFA - Formation of dialogue platform between Industry/K4C, Community groups and LG

Implement Vision- Collective action plan- Implementation of 1-2 quick wins (waste water management study, WASH; etc)- Identify and engage implementation partners- Conduct Mid line survey

Clean Cluster- Community access to safe drinking water improved-WASH within cluster and reduced prevalence of water borne diseases - Increase use of ETP-90% of factories commit to PaCT principles-Technological solutions (CETP: Sludge management; solar lighting)

2014

21

2015

2016 2019 Objective: Mobilize cluster

community, textile factories and local government to develop joint vision and road map to move towards a Cleaner Cluster

Moving Towards Cleaner Clusters Current situation: The 33 WDF units within the Konabari cluster use about 2/3 of blue water. Households lack reliable water access. No formal channel of dialogue among different stakeholders.

22Partnership for Cleaner Textile

• Scope• Member based knowledge center - first of its kind in Bangladesh• Business to Business facilitation ($220,000 in deals to date)• Practical and unbiased information on cleaner production• Organizing of training, workshops and seminars on Cleaner

Production• Introduction of new technology to factories• Development of industry best practices, info sheets etc.• Hosted by BGMEA at their offices

• Current Membership• 73 members, from factories, service providers, input suppliers, &

knowledge institutions.

Textile Technology Business Center (TTBC)

23Partnership for Cleaner Textile

Facilitating finance to factories

• Established credit lines of US$500 million with Bangladesh Central Bank for green financing.

• Working in collaboration with several other commercial financial institutions to support factories access finance for cleaner production.

24Partnership for Cleaner Textile

It’s now time to ACT…JOIN PaCT

For more information please visit:www.textilepact.org

Phone nr:E-mail:

!

+1 202 290 6819MSeneviratne@ifc.org

Program Manager PaCTMohan Seneviratne