Promoting private sector investment through large scale adoption of energy saving technologies and equipment for Textile and Readymade Garment (RMG) sectors of Bangladesh

Promoting private sector investment through large scale adoption of energy saving technologies and equipment for Textile and Readymade Garment (RMG) sectors of Bangladesh

  • Status Under implementation
  • Date approved 13 Nov 2020 at B.27
  • Est. completion 18 Oct 2034
  • ESS Category Intermediation 2

Bangladesh has experienced an average of 8% annual growth in CO2 emissions over the past two decades. The readymade garment (RMG) sector is the largest industrial contributor in CO2 emissions at 15.4%, followed by the textile sector at 12.4%. These sectors are not operating efficiently because of continuous usage of old and badly maintained machines coupled with poor energy management.  

If the current industrial energy intensity persists along with the economic growth outlook in the medium to long term, Bangladesh will face severe difficulties in managing rising energy demands and achieving its GHG emission reduction targets under the Paris Agreement. However, textile and ready-made garments (RMG) manufacturers face several barriers to investing in energy efficiency including inadequate financial incentives, lack of technical expertise and the lack of an enabling environment. The sectors must overcome these barriers so that Bangladesh can meet its nationally determined contributions (NDC) target of 15% GHG emission reduction compared to a business-as-usual scenario by 2030. 

The Programme provides an integrated package of concessional financing for textile and RMG manufacturers, and technical assistance to create an enabling environment and ultimately to reduce 14.5 million tonnes of carbon dioxide equivalent (MtCO₂eq) in emissions. This is facilitated through capacity building, awareness raising, policy development and support in loan disbursal, monitoring and evaluation of the programme parameters.

Total project value


Tonnes of emissions avoided




Result areas

Project timeline


14 Aug 2018 - 823 days

Concept note received

14 Aug 2018

Funding proposal received

08 Oct 2019

Cleared by GCF Secretariat

17 Aug 2020

Cleared by iTAP

19 Oct 2020


13 Nov 2020 - 705 days

Approved by GCF Board

13 Nov 2020

Legal opinion on AE's Internal Approval

01 Dec 2020

FAA executed

20 Jul 2022

Under implementation

18 Oct 2022 - 646 days so far

FAA effective

18 Oct 2022

Disbursement - USD 672,825

18 Apr 2023

To be completed

18 Oct 2034 - 3,738 days to go

One region

  • Asia-Pacific

One country

One priority group

  • Least Developed Countries
  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing0% disbursed

LoanUSD 250,000,000
GrantUSD 6,480,000
Total GCF Financing
USD 256,480,000


Co-FinancingLoanUSD 33,000,000
Co-FinancingIn-kindUSD 1,000,000
Co-FinancingIn-kindUSD 20,000
Co-FinancingLoanUSD 50,000,000
Total Co-Financing
USD 84,020,000

GCF Contacts

General media inquiries

GCF Communications
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GCF Information Disclosure
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Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6186 (KST)
File a complaint

Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6714 (KST)
Send e-mail

Accredited Entity

Infrastructure Development Company Limited (Bangladesh)
Mr. Md. Enamul Pavel

Head of Renewable Energy
UTC Building, Level 16, 8 Panthapath, Kawranbazar, Dhaka, Bangladesh
Phone +880 1912062774
Ms. Mafruda Rahman

Assistant Vice President (AVP), GCF Unit
Phone +8801726530718
More contacts

National Designated Authority

Economic Relations Division (ERD), Ministry of Finance
Mr. Md. Shahriar Kader Siddiky Primary
Block No. 8, Room No. 3 & 4, Shere-e-Bangla Nagar, Dhaka, Bangladesh
Phone +88-02-222216701

News + Stories

GCF and IDCOL sign key agreement on ambitious energy project

21 Jul 2022 / GCF and the Infrastructure Development Company Limited (Bangladesh) or IDCOL, have signed a critical agreement to implement a large-scale energy saving project for Bangladesh’s textile and garment industries.  The agreement was signed at the most recent GCF Board meeting, the first in person Board meeting to be held in the Republic of Korea since 2019.