Bangladesh Banks Expand Green Finance Amid $172 Billion Demand

Bangladesh faces a critical need for approximately $172 billion in green financing by 2030 to maintain the global competitiveness of its industries, with funds required across energy, transport, industrial sectors, green buildings, water management, and agro-processing. The banking sector in Bangladesh has taken significant steps to support this green transition through sustainable and green finance products, including loans, refinancing options, and dedicated funds such as Bangladesh Bank's Green Transformation Fund (GTF). Key financial institutions like Prime Bank Investment Ltd, MTB, and SJIBPLC are actively promoting a variety of green finance schemes targeting SMEs, women entrepreneurs, and environmentally responsible enterprises, with emphasis on Shariah-compliant financing, bonds, and sukuk. Bangladesh Bank's regulatory leadership since 2011 has been instrumental in embedding sustainable finance into banking practices, achieving investment levels surpassing national targets, although consistent compliance remains a challenge. Regionally, Asia, including markets like Hong Kong, is gaining momentum in green finance, supported by increased issuance of sustainable bonds and innovative financial instruments like dim sum and panda bonds, positioning the region to play a more prominent role in the global energy transition. Together, these developments underscore a growing commitment across Bangladesh and Asia to mobilize diverse financing sources to address climate change and foster sustainable economic growth.