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

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 - 68 days so far

Approved by GCF Board

13 Nov 2020

Under implementation

Completed

One region

  • Asia-Pacific

One country

One priority group

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

GCF financing

InstrumentAmount
GrantUSD 6,480,000
LoanUSD 250,000,000

Cofinancing

CofinancerInstrumentAmount
Co-FinancingLoanUSD 33,000,000
Co-FinancingIn-kindUSD 1,000,000
Co-FinancingIn-kindUSD 20,000
Co-FinancingLoanUSD 50,000,000

GCF Contacts

General media inquiries

GCF Communications
Phone +82 10 4458 7751
Send e-mail

Request for information

GCF Information Disclosure
Request information about this project

Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6157
File a complaint

Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6155
Send e-mail

Accredited Entity

Infrastructure Development Company Limited

Mr. Md. Enamul Karim Pavel
Head of Renewable Energy
UTC Building, Level 16, 8 Panthapath, Kawranbazar, Dhaka, Bangladesh
Phone +880 1912062774
ekarim@idcol.org
Ms. Mafruda Rahman
Assistant Manager, Corporate Affairs
UTC Building, Level 16, 8 Panthapath, Kawranbazar, Dhaka, Bangladesh
Phone +88029102171
Phone +8801726530718
mafruda@idcol.org

National Designated Authority

Bangladesh

Economic Relations Division (ERD), Ministry of Finance

Ms. Fatima Yasmin
Secretary
Economic Relations Division (ERD), Ministry of Finance, Block No:8, Room no:3&4, Shere-e-Bangla Nagar, Dhaka, Bangladesh
Phone +88 02 9113743
Phone +88 02 9133489
secretary@erd.gov.bd
fatima.yasmin@gmail.com