Bangladesh Bank governor Dr Atiur Rahman on Thursday said the central bank is encouraging scheduled banks and financial institutions for financing green projects.
He said the central bank 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.
Atiur was addressing a workshop titled ‘ADB Industrial Energy Efficiency Finance Programme’ at a city hotel.
Held with IIDFC Chairman M Matiul Islam in the chair, the function was addressed by delegates from the Asian Development Bank (ADB) and the chief executives and managing directors of different banks and financial institutions.
Emphasising the need for energy security, the central bank chief said energy security and efficiency can play a vital role in enhancing the country’s economic growth. “That’s why achieving energy efficiency has been a high priority in developing economies like Bangladesh.”
Reiterating Bangladesh Bank’s support for energy efficiency projects, he said apart from saving energy, energy efficiency will help reduce carbon footprint of industries, and enhance the environmental sustainability and improve the quality of life for the masses.
This will ultimately ensure green growth which is nowadays on the top of global agenda of discussions due to serious threats posed by global warming and associated climate change, he said.
The governor said banks and financial institutions have been advised to finance solar energy, bio-gas plant, ETP and Hybrid Hoffman Kiln (HHK) in brick making sector under refinance programmes.
He mentioned that the central bank has developed a guideline to encourage green financing which requires due diligence on Environmental Risk Management to implement green energy projects.
“Now all banks and financial institutions of local and foreign, private and public have been following the Environmental Risk Management Guideline,” he added.
He said another dozen-plus green products will soon be added to the list of green financing in order to further boost this the mode of financing and encourage entrepreneurs,
The central bank chief mentioned that the Bangladesh Bank has designed a programme titled ‘Refinance scheme for Financing improving Brick Kiln Efficiency’ with the help of ADB which provided US$ 50 million to refinance energy efficient brick kiln technologies.
Source: UNB Connect