Bangladesh Bank Governor Dr Atiur Rahman said the central bank will provide necessary support to any attempt to raise fund from the capital market for green initiatives through issuance of green bonds.
He mentioned that fund raising from the capital markets for green initiatives through issuance of ‘green bonds’ has gained attraction in advanced markets and such initiative could also be taken here.
The central bank governor was addressing as the chief guest the Star Client Award ceremony held at Radisson Hotel in the capital on Saturday.
The event was jointly sponsored by Southeast Bank, PRI and Financial Express.
At the function, Bashundhara Group was awarded the Star Client Award for its outstanding contribution to the private housing sector of the country. Bashundhara Group Chairman Ahmed Akbar Sobhan received the award from Bangladesh Bank Governor Dr Atiur Rahman.
Southeast Bank Ltd. in association with the Policy Research Institute and The Financial Express gave the award. Sixteen more entrepreneurs were also awarded for their contribution to different fields.
Referring to numerous green initiatives in the country’s financial sector, Dr Atiur said the central bank’s advocacy initiative is sensitising the financial sector towards urgency of adopting green options in output practices and lifestyles.
He underscored the need for taking advocacy initiative for similar sensitization of the country’s real sector businesses.
“Rewarding green initiatives gives clear evidence of deepening, broadening awareness of the urgency of transforming our output and business practices and lifestyles to new low emission green options by avoiding high GHG emission,” he said.
“This transformation brooks no delay if mankind is to succeed in arresting environmental degradation and in coping with the looming climate change threats,”
Dr Atiur said.
He also observed that civil society activism is a crucially important ingredient for speeding up of this transformation, and the event is a testimony that Bangladesh is not lagging behind in creating awareness about it.
The central bank has already extended its supporting hand for such transformation with policy initiatives by promoting financing of new green options in output techniques and processes in the economic activities, Dr Atiur said.
Besides issuing guidelines for environmental risk assessment of financing proposals and introducing refinance support lines for green financing, the central bank has recently introduced indicative targets for green financing, he mentioned.
“The indicative targets set for green financing are quite modest. I hope and believe that our financial sector will outperform these by ample margins, with selectivity towards green options in their inclusive financing of agriculture and SMEs, alongside green energy generation and green manufacturing projects,” said the governor.
There is scope of more comprehensive, structured and sustained initiatives with engagement and support of business and industry chambers in Bangladesh.
The central bank and the financial sector as a whole will gladly co-operate and liaise with such real sector initiatives to help create necessary enabling environments for green initiatives.