Fashion Companies Pledge to Invest in Bangladesh First Offshore Wind Project

Business & Finance

December 6, 2023, by Adnan Memija

Fashion companies, BESTSELLER and H&M Group have pledged to invest in the first utility-scale offshore wind project off the coast of Bangladesh, which is being developed by Copenhagen Infrastructure Partners (CIP) together with local partner Summit Power.

The announcement was made Tuesday at the ongoing COP28 in Dubai.

The 500 MW offshore wind project, which is in early-stage development, could significantly increase the availability of renewable energy in one of the fashion industry’s most important manufacturing countries, said the non-profit organisation Global Fashion Agenda (GFA).

More than 70 per cent of the fashion industry’s GHG emissions come from upstream activities and current operations predominantly rely on non-renewable energy sources, such as petroleum, gas, oil, and coal, said GFA.

To ensure and accelerate decarbonisation, GFA is advocating collective investments by fashion brands in new renewable energy generation.

The organisation also called for other fashion brands to co-invest in the wind farm off the coast of Cox’s Bazar in Bangladesh and potentially future energy projects.

BESTSELLER will invest up to DKK 700 million (about EUR 94 million) in the wind project. This represents the largest sustainability-related investment in the company’s history, BESTSELLER said.

“By pledging to invest significantly in the offshore wind park in Bangladesh, we can support the availability of renewable energy in one of our key manufacturing countries and aim to reduce climate emissions from our supply chain. It’s a responsibility we share with the global fashion industry, and we encourage other fashion companies to share the opportunity with us,” said Anders Holch Povisen, CEO of BESTSELLER.

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If development is successful, the wind farm’s operations are expected to commence in 2028. The project is expected to contribute to substantial job creation, stabilise the energy supply, and reduce emissions by approximately 725,000 tonnes annually, said GFA.

“For us, this is a great example of how a collaborative approach on sustainable financing solutions and policy work can go hand in hand to overcome industry-wide challenges…The nearshore wind park in Bangladesh is an important step for the transformation of the Bangladesh renewable energy market and we believe that this will contribute greatly to the decarbonisation of the garment industry as a whole,” said Helena Helmersson, CEO of H&M Group.