Dhaka, Bangladesh (BBN)- The central bank is working to help ensuring sustainable energy for achieving sustainable development through boosting green financing across the country, Bangladesh Bank (BB) Governor Dr. Atiur Rahman said.
“We’ve undertaken and implemented a good number of initiatives to help implement energy and environment related programmes of the government,” BB Governor Dr. Rahman said while launching a German funded project- Green Banking for Energy Sustainable Economy- at the Bangladesh Institute of Bank Management (BIBM) Auditorium in the capital Dhaka on Sunday.
The launching ceremony was organized jointly by the BIBM, GIZ and Sustainable and Renewable Energy Development Authority (SREDA).
The central bank chief also said: “To promote sustainable energy in Bangladesh, the government has prepared a Renewable Energy Policy and has undertaken various action plans with the target of generating 5.0 per cent and 10 per cent of total power production by 2015 and 2020 respectively.
Besides, the government has initiated setting up of a SREDA and has also finalised Sustainable Energy Development Act, 2011, he added.
Sustainable energy is crucial for sustainable development, a process that ensures development of the current generation without impeding the development opportunities for the future generation, according to Dr. Rahman.
“Economic, social, and environmental sustainability receive high priority in the policies of the central bank of Bangladesh,” the Governor explained.
He also said the BB’s circular on ‘Policy Guidelines for Green Banking’ is a notable step towards developing green banking practices in the country.
Renewable energy has also received special attention of the central bank since 2010, he noted.
The BB has already introduced 50 green products under 11 categories to be eligible for refinancing facilities available at the central bank.
In 2010, the central bank set up a 20 kilowatt solar panel in its Head Office, and has also advised banks and financial institutions to extend finance for solar energy, bio-gas plant, Effluent Treatment Plant (ETP) and Hybrid Hoffman Kiln (HHK) related projects.
Mentioning two refinance schemes, launched by the BB earlier, Dr. Rahman said the central bank has also recently introduced a green fund of US$ 200 million for low-cost, long-term foreign currency projects to be disbursed to green apparel and leather entrepreneurs.
The central bank introduced a BDT 2.0 billion revolving fund in 2010.
In 2012, Asian Development Bank (ADB) supported a refinance scheme of BDT 50 million for improving the efficiency of brick kilns.
The BB Governor believes this project will significantly contribute to saving our ‘planet’ and better achievement of our sustainability goals.
Among others, Dr. Thomas Prinz, Ambassador of the Federal Republic of Germany; Professor Dr Toufic Ahmad Choudhury, Director General of BIBM, Professor Dr. Shah Md. Ahsan Habib, Director of BIBM and Anwarul Islam Sikder, Chairman of SREDA also spoke on the occasion.