BB to add more green financing products for banks, FIs

FE Report | Published: May 09, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Bangladesh Bank governor Dr. Atiur Rahman Thursday said central bank is going to add dozen plus green financing products for the banks and financial institutions for further boost of financing and encouraging entrepreneurs.
"Banks and FIs in Bangladesh have been advised to finance solar energy, bio-gas plant, ETP and Hybrid Hoffman Kiln (HHK) in brick making sector under refinance programs. Another dozen plus green products will soon be added to this list," he said while inaugurating a workshop in a city hotel.
Asian Development Bank (ADB), Industrial and Infrastructure Development Finance Company (IIDFC) Ltd. and Tetra Tech Es Inc jointly organized the workshop titled "ADB Industrial Energy Efficiency Finance Programme Third Workshop" which is part of a series workshop under ADB "Bangladesh Industrial Energy Efficiency Finance Program (BIEEFP).
The welcome note was addressed by Officer In-charge of ADB Bangladesh Resident Mission Rudi Van Dael, Investment Specialist of ADB Juliette Leusink released the final report of the program. The programme was also addressed by IIDFC Chairman Matiul Islam, Director of Tetra Tech Rakesh Kumar Goyal, IIDFC Managing Director Md. Asaduzzaman Khan.
IIDFC MD Md. Asaduzzaman Khan chaired the plenary session where chief executive officer of Fortuna group Fayaz Taher, Deputy Managing Director of Anwar Ispat Ferdous Hassan Khan, Chief Operating Officer of Shinepukur Ceramics Rizvi Ul Kabir and Deputy Manager of IIDFC Shafiqul Alam spoke.
The BB governor said, "We have already introduced refinance line of Tk 2.0 billion at a rate of 5 per cent. Bangladesh Bank has designed a programme titled 'Refinance scheme for Financing improving Brick Kiln Efficiency' with the ADB for which a fund of US$ 50 million to refinance energy efficient brick kiln technologies, such as, HHK, Zig-Zag, VSBK and Tunnel, has been created."
He said that the industries are the driver of economic growth of the country and energy efficiency is one of the important measures for industries to meet the present energy crisis and it will play an important role in the continued growth of the country.
He said as the country progresses towards development, the demand for energy by all sectors of the economy, including industries, also increases.
"For sustaining the present trend of GDP growth, the outputs of industries would require to grow at the same or more pace. For that to happen, energy security is a must and energy efficiency can play a pivotal role in this regard," he said.
He said apart from saving energy, energy efficiency will help reduce carbon foot-print of the industries and enhance environmental sustainability as well as quality of life for the broad masses.
BB governor said Bangladesh Bank is encouraging scheduled banks and financial institutions for green financing and for developing green products. BB considers 'green banking' as a socially responsible mode of financing and deems it as one of the major drivers of sustainable economic development in Bangladesh.
"Green banking/financing requires thorough due diligence of environmental parameters under Environmental Risk Management for which a guideline has already been developed by BB. All banks and financial institutions, local and foreign, private and public, have been following the Environmental Risk Management Guideline", he said.
IIDFC Chairman M Matiul Islam said that industries have to be energy efficient to be competitive.
He thanked ADB for designing and implementing the energy efficiency program which has created an overall investment opportunity of US$ 140 million with a simple pay-back period of 3 years.
He said that the workshop would build capacity of the participants in preparing project appraisal of energy efficiency projects using the newly designed software.
Rakesh K Goyal suggested banks and financial institutions to reward the energy efficient clients to encourage entrepreneurs.
Asaduzzaman Khan said IIDFC is not a mere leasing and financing institutions, it is a creative business organisation.
More than ten financial institutions and technology providers arranged booth/kiosks on the workshop premises to showcase their products to the industries. The workshop created a unique opportunity for financial institutions, industries and technology providers to exchange their views and to identify practical solutions to implement energy efficiency measures.
There were also one on one session between ADB & financial institutions on the possible fund allocation and between financial institutions & industries regarding financing options.