This study examines the structural determinants of carbon lock-in in Bangladesh’s RMG sector from a demand-side perspective. Despite rising decarbonisation pressures, the sector remains dependent on carbon-intensive production. Using plant-level survey data and a mixed-methods approach, the study investigates how technological, institutional, and behavioural factors sustain carbon dependency. Findings show that factories mainly adopt low-cost energy efficiency measures, while deeper transitions are hindered by high capital costs, limited financing, and regulatory and supply-chain rigidities. Renewable energy adoption remains low and uneven, particularly across factory sizes, while compliance is largely procedural with limited structural impact. Behavioural barriers, including risk aversion and decision-making inertia, further reinforce carbon lock-in. The study recommends concessional financing, regulatory simplification, and coordinated incentives to enable sustainable industrial transition.
Authors: Khondaker Golam Moazzem, Sami Mohammed, Maleeha Sahab Ali and Mehadi Hasan Shamim
Publication Period: May 2026