Bangladesh Bank acted to popularize sustainable financing in a broad manner in 2011 by drawing up green banking guidelines for banks in the country. The bank set up the Sustainable Finance Department in July 2015, extinguishing the previous Green Banking and CSR Department to widen the use of sustainable finance. Sustainable Finance department is disbursing loans as refinancing for green products/project/initiatives. Bangladesh Bank has introduced Sustainable Finance Policy (SFD Circular No.-05) in 2020 in order to mobilize finance towards sustainable growth. From the product claimed as green products, it had accredited 70 products/project/initiatives (SFD Circular No.- 02/2023) so that lenders can efficiently disburse loans under the refinancing schemes of the sustainable financing programme (SRO). The product list includes Solar home systems, Solar Park, Net Metering Rooftop Solar System, Solar PV Assembly/ Manufacturing Plant, Solar Irrigation Pumping System, and some others PV technologies. It also includes Installation of energy auditor certified machineries including boiler for industries, improved rice parboiling system, biogas plants, wind power plants, affordable green housing, wastewater treatment plants, PET bottle recycling plants, compressed block-bricks, palm oil production, organic farming, and several others.
1. Green Products and Initiatives (BDT 4 billion)
2. Green Transformation Fund (GTF) (USD 200 million, FE Circular No.-02, Euro 200 million, FE Circular No. 20 & 5000 Crore BDT, SFD Circular No.-07)
3. Technological Development Fund (TDF) (BDT 10 billion) and
4. Shariah Based Refinancing Schemes for Green Products (BDT 1.25 billion)
