IFC led Advisory Partnership for Cleaner Textile (PaCT) is a holistic program that supports the entire textile value chain – spinning, weaving, wet processing and garment factories in adopting Cleaner Production (CP) practices and engages with brands, technology suppliers, industrial associations, financial institutions, government to bring about systemic and positive environmental changes for the Bangladesh textile sector and contribute to the sector’s long-term competitiveness and environmental sustainability.

What is PaCT

Launched in 2013, PaCT focuses on reducing the environmental impact and resource consumption of Bangladesh’s textile sector. PaCT is the first program ever to incorporate several cutting-edge innovations to address the environmental and sustainability challenges related to the textile sector-development. These ranges from low-cost or no-cost changes in management and housekeeping practices, to process modifications, to larger investments such as new equipment.

IFC is the implementer of the advisory program with financial support from the development partners (the governments of Denmark, Australia, and The Netherlands), implementation support from Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and private sector contribution from brands and technology vendors.

PaCT helped more than 338 factories to reduce fresh water consumption by 25 million m3/year and cut wastewater discharge by 21.08 million m3/year. These factories now save 2.5 million MWh/year in energy and avoid greenhouse gas emissions of up to 489,796 tons/year of CO2 – the equivalent of removing over 98,000 cars from the road. Helping factories recover chemicals such as salt and caustic soda further cuts operating costs. PaCT advocacy helped create a $200 million Green Transformation Fund, through which the Bangladeshi government supports low cost financing for resource efficiency in the textile industry.

As the challenges of the textile sector were becoming increasingly more complex, this program evolved into its second phase (PaCT II) where the competitiveness of the textile sector became the emphasis of the program.

About IFC

IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org