Expanding green industry finance

To facilitate green industries in Bangladesh, Bangladesh Bank has taken several initiatives through refinance schemes from time to time. Recently, through its Sustainable Finance Department, Bangladesh Bank launched a Tk 10 billion refinance scheme for green industries and green factory buildings at a 5 per cent rate of interest (ROI), while charging participating financial institutions (PFIs) 2 per cent per annum.

To promote sustainable growth, 70 sectors have been brought under the proposed refinance scheme. Energy and resource efficiency, carbon emission reduction, and renewable energy are among the key areas that can truly ensure sustainable growth while minimising environmental harm. Under this scheme, term loans will help industries recover costs already incurred for their projects.

The reduced ROI will enable industries to generate higher profits through lower financing costs. Moreover, energy- and resource-efficient industries can now expand their production significantly while keeping utility costs at a manageable level.

Today, the world is no longer focused solely on ensuring economic growth. Rather, it is equally important to protect the planet from the harmful effects of industrial emissions, waste, and other environmentally hazardous elements. Therefore, ensuring a livable planet for future generations has become a necessity.

Accordingly, Bangladesh is moving forward with environmentally friendly initiatives alongside sustainable economic growth. However, it is now crucial to ensure the proper recovery of loans provided under the refinance scheme so that the revolving fund is not constrained by irregular repayments and can continue supporting future green investments.

Kawsik Azad Pronoy

Unit Head

Dutch Bangla Bank

Corporate Business Division