$200 Billion Green Investment Potential in Bangladesh

World Bank has pointed out a massive $200 billion investment potential for the green and climate sector in Bangladesh. Recently, in collaboration with Policy Research Institute (PRI), the World Bank organized a webinar ‘Incentives for Green Finance and Investment’ at the policy dialogue platform of green growth for Bangladesh’.

Speakers in this webinar highlighted that Bangladesh Bank enforces that banks and financial institutes provide 5% green finance loans annually, however only 1.4% was distributed in 2020.

This issue has become more pressing due to businesses facing increasing challenges from climate change. To overcome and transform industries into green and sustainable businesses require funding.

Experts highlighted that Bangladesh should set its eyes to become carbon neutral by 2040 -2050. This timeline would be in line with China and India.

Financial institutions' willingness to fund green projects will encourage businesses to move forward towards environment-friendly business.

There remain significant hurdles in the way such as lack of legal and regulatory framework, inadequate environmental monitoring, lack of well-coordinated policy oversight body and underdeveloped green financial market knowledge and capacity.

Additionally, renewable energy sources such as solar power plants should be established in the northern parts of the country to make the best use of the land, as the region itself did not experience too much industrialization due to lack of access to the port or raw materials in comparison to Dhaka, Chittagong and other southern regions of the country.