BB to set target to finance green energy projects

FE Report

Prime Minister's Economic Affairs Advisor Dr Mashiur Rahman on Thursday said renewable energy sector will not require any subsidy in the future.

Dr Mashiur said this while speaking at a launching ceremony of the two-day "IDCOL Green Energy Expo-2014" at Hotel Sonargaon.

Inaugurating the expo as the chief guest, the advisor said a huge amount of subsidy was given to the renewable energy sector earlier, which has now come down notably.

The adviser said there is a general belief that government entities could not be run efficiently. But, IDCOL has proved the perception wrong by running its operation skillfully.

Mashiur claimed the IDCOL has performed social responsibility through implementing the government's agenda to supply electricity house to house.

He said the more people use renewable energy the more the prices will get down so government will not require to subsidize the sector.

The Bangladesh Bank (BB)governor Dr. Atiur Rahman said the central bank is going to set annual target for banks and financial institutions for financing green energy projects which will be implemented from January next year.

Speaking on BB's introduction of green banking department and green refinancing fund, Dr Atiur Rahman said: "My dream, my endeavor, my urge is to make green finance a dominant investment portfolio in each and every bank and financial institution."

The governor said if any bank or financial institution comes up with innovative green product that truly contributes to environmental conservation BB will seriously study that for refinancing support.

"We will also try to enhance the size of our refinancing scheme if the demand picks up so that we would be able to facilitate large scale investments in green alternatives," he added.

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