Green financing not satisfactory in Bangladesh, say experts

by Apparel Resources News-Desk

04-October-2019  |  2 mins read

Green Finance
Image Courtesy: unenvironment.org

Despite being home to highest number of green apparel manufacturing factories globally, the country lags in green financing still!

This was maintained by the experts recently, who claimed that despite considerable publicity in green banking, the share of green finance in total bank advances remained poorly over 2 per cent, whereas the Bangladesh Bank guideline suggests the ratio to be at least 5 per cent.

“Our RMG sector is growing rapidly. Bangladesh has the greenest RMG factories in the world. On the other hand, the sector is facing various problems. Day by day, number of international competitors is increasing, while the cost of production is soaring. Given the situation, the Government should increase incentives to convert factories to green,” maintained Faisal Samad, Senior Vice-President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

As per experts, Bangladesh is spending inadequate fund to implement green projects across the country mainly due to lack of political commitment.

It may be mentioned here that the country’s central bank (Bangladesh Bank) recently introduced a refinance scheme namely Green Transformation Fund amounting to US $ 200 million for the export-oriented industries of textile and leather sectors to set up environment-friendly infrastructures.

The refinance fund will be provided for water use efficiency in wet processing, water conservation and management, waste management, resource efficiency and recycling, renewable energy, energy efficiency, heat and temperature management, air ventilation and circulation efficiency and work environment improvement initiatives in the export-oriented textiles and leather industries.

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