Bangladesh Bank will make it mandatory from next year that the banks and financial institutions dedicate a part of their total loan disbursements for environment-friendly or green projects, said Governor Atiur Rahman.
The central bank’s chief was speaking at the inaugural function of “IDCOL Green Energy Expo 2014” yesterday in the capital.
Mashiur Rahman, Adviser for Economic Affairs to Prime Minister, attended the ceremony as chief guest.
The two-day long green energy products exhibition has been organised by Infrastructure Development Company Limited (IDCOL).
“We now set an annual target for banks and financial institutions on direct financing (to green projects). But from January 2015 a part of total lending must be kept for green projects,” Atiur Rahman said in his address as special guest.
He said green growth cannot be achieved without green investment.
Shifting the investment from fossil fuel to green energy is the only way for transforming economic growth paths, the governor stressed.
He said banks and FIs have already disbursed Tk82,600 crore as green financing during the period from January 2012 to June 2014.
“We have brought 47 green products under the central bank refinance scheme where 23 are green energy products,” he said.
If any bank or FI comes up with an innovative green product that is believed to truly contribute towards environmental conservation, Bangladesh Bank will seriously study that for refinancing support, the governor stated.
“We will also try to enhance the size of our refinance scheme if the demand picks up, so that we can facilitate large-scale investments in green alternatives. We have already supported a platinum rated green textile factory from this scheme,” he said.
Atiur Rahman called upon the financial institutions to participate in making the water management and recycling in textile and clothing industries environment-friendly.
Mashiur Rahman said despite being a government-run company, IDCOL fared well in its projects as the government never interfered in works.
He said it is not always true that the state-run companies exhibit bad performance while private firms better perform.
“But a state-run company can operate following its rules, it will certainly show good performance,” Mashiur said.
PM adviser said the government subsidy in solar energy sector has been reduced from earlier amount as demand for solar home systems rises.
IDCOL Executive Director and CEO, Mahmood Malik presided over the opening ceremony of the expo.
He said: “The primary objective of solar home system programme is to supplement government’s vision of ensuring ‘Access to Electricity for All’ by 2021.”
He said IDCOL already approved funding to 191 solar irrigation pumps and set a target to finance 1,550 such pumps by 2017.
