Leather exports hinge on LWG certification, environmental compliance: Nasim Manzur

Bangladesh's ambition to revive its leather  exports critically depends on achieving Leather Working Group (LWG) certification, a goal that remains elusive as long as the central effluent treatment plant (CETP) in Savar remains non-compliant, said Syed Nasim Manzur, president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB).

He also said the failure to operationalise the CETP and meet LWG environmental compliance standards will continue to exclude Bangladesh from the premium global market.

He was virtually addressing an event titled "Sustainable Export Growth in Post-LDC Era: Strategies for the Leather Sector," organised by the Dhaka Chamber of Commerce and Industry (DCCI) today.

"Without LWG certification, we are invisible to major global buyers who demand verifiable sustainable sourcing," he said.

Although 220 tanneries relocated to Savar from Hazaribagh in 2017, the promised environmental infrastructure, particularly the CETP, remains incomplete. This has prevented Bangladesh from qualifying for LWG audits, resulting in a steep fall in leather exports from $397 million in FY14 to just $123 million in FY23.

Manzur said resolving the CETP issue is the single most important factor for export recovery and growth, and proposed appointment of an internationally certified CETP operator, backed by green financing, to bring the plant up to LWG standards.

"Once we have a functioning, audited CETP, leather exports can double," he said.

He highlighted global trends and said major brands actively seek sustainable leather sources.

"There is a window of opportunity for Bangladesh, but it won't remain open indefinitely," he said.

Manzur urged policymakers to offer the same support to leather as is provided to the readymade garment sector, including bonded warehouse facilities, duty-free import of CETP-related machinery, and reimbursement of audit costs.

"Bangladesh's leather sector can thrive post-LDC graduation," he said, "but only if we deliver on compliance, especially through a fully operational, LWG-ready CETP."