Global Green Climate Fund (GCF) has granted aid worth US $ 256 mn to the textile and readymade garment (RMG) sectors in Bangladesh. The aim is to encourage private sector investment in ushering in energy enhancing technologies and equipment in the two segments.
In their 27th board, the GCF has approved over US $ 1 bn in total to release to the developing countries to usher in and encourage low emission, and climate resilient development. The meeting also adopted the Updated Strategic Plan for the GCF 2020-23.
Of the total 16 projects that were awarded the funds to Bangladesh was one of the few countries. Infrastructure Development Company Limited (IDCOL) is the direct access entity (DAE) of the GCF and will receive the funds as concessional loan for a tenure of 20 years.
Fatima Yasmin – Secretary, Economic Relations Division, Ministry of Finance says: “IDCOL can be a national role model for developing climate change responsive commercial projects in the country.”
Dr. Rubana Haq – President, Bangladesh Garment Manufacturers & Exporters Association (BGMEA) congratulates: “Access to such concessional financing, and adoption of energy efficient equipment will make it affordable for the businessmen to do business and will further strengthen the competitive edge of Bangladesh RMG sector.”
Abdullah Al Mamun – VP, Bangladesh Textile Mills Association (BTMA) feels: “The approval of the fund will accelerate industrial growth on the sustainable path.”
Mahmood Malik – Executive Director & CEO, IDCOL Bangladesh states: “This funding allows us to fulfill our SDGs. It is a remarkable success for Idcol.”
The textile and the RMG segments account for roughly 38% of the total energy consumption in the industrial sector of Bangladesh. According to IDCOL, US $ 100 mn out of the total amount will finance energy efficiency projects in the textile sector and US $ 150 mn will get to finance the same kind of projects but in the RMG segment.
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