Promoting private sector investment through large scale adoption of energy saving technologies and equipment for Textile and Readymade Garment (RMG) sectors of Bangladesh
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.
- Private sector
- Public sector
GCF financing0% disbursed
|Total GCF Financing|
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National Designated Authority
Economic Relations Division (ERD), Ministry of Finance
Economic Relations Division (ERD), Ministry of Finance, Block No. 8, Room No. 3 & 4, Shere-e-Bangla Nagar, Dhaka 1207, Bangladesh, Dhaka, Bangladesh
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.