FP150

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

 

Theme

Mitigation

Result areas

Project timeline

Pipeline

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

Approved

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 - 529 days so far

FAA effective

18 Oct 2022

Disbursement - USD 672,825

18 Apr 2023

To be completed

18 Oct 2034 - 3,856 days to go

One region

  • Asia-Pacific

One country

One priority group

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

GCF financing0% disbursed

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

Co-financing

Co-financerInstrumentAmount
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
Request information about this project

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
Primary

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

Assistant Vice President (AVP), GCF Unit
Phone +8801726530718
mafruda@idcol.org
More contacts

National Designated Authority

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

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.