To promote private sector investment through large scale adoption of energy-efficient technologies in the garment manufacturing and textile sectors, Green Climate Fund (GCF) has approved an amount of US $ 256.5 million for Bangladesh.
Established by 194 Governments to limit or reduce greenhouse gas emissions in developing countries and to help vulnerable societies adapt to the unavoidable impacts of climate change, GCF is a fund founded within the framework of the United Nations Framework Convention on Climate Change, as an operating entity of the financial mechanism aimed to assist the developing countries in adaptation and mitigation practices so as to counter climate change.
A decision in this direction was taken during the GCF board meeting on 13 November.
According to the Infrastructure Development Company Limited (Idcol), this is the first concessional credit line and the first private sector financing from the GCF in Bangladesh.
A press release issued by Idcol underlined it is the largest approved funding proposal for any DAE (direct access entity) of the GCF accredited globally.
It may be mentioned here that under the programme titled ‘Promoting private sector investment through large scale adoption of energy-saving technologies and equipment for Textile and Readymade Garment sectors of Bangladesh’, Idcol as the direct access entity of the GCF, received the approval of the funding proposal.