Challenges of Green Financing in Bangladesh

Abstract

This report titled “Challenges of Green Financing in Bangladesh” based on the knowledge & experience gained, aims to discuss the overall Banks & NBFIs performances in sustainability and green finance, also challenges that faces by Bangladesh Bank and future plans. This study attempts to highlight the obstacles and prospects facing sustainable & green finance in Bangladesh through some published materials, including research papers, reports from various banks and environmental organizations, Bangladesh bank publications etc. This report includes details on BB's policy initiatives, operational approaches to sustainable finance, green finance and bank and financial institution sustainable finance actions from first quarter (January 1-March 31, 2023), also includes investment green and financing provided by 34 FIs through a refinance program and 61 scheduled banks. According to BB policy guidelines, every banks & NBFIs must disburse loans those are funded equal or more than to 20% in sustainable finance and 5% in green finance. This study looks at Bangladesh's banks and NBFIs' latest objective achievement scenario for sustainable and green finance for the first quarter of 2023. The findings of this study show that by putting in place a number of green laws and regulations, Bangladesh's central bank has made great progress toward greening the nation's financial system. The analysis also shows the banks' and NBFIs' overall target accomplishments and shows 3 individual NBFIs performance towards green products along with IPDC finance limited. Besides, this paper also contains a brief overview of IPDC Finance limited as I did internship there. IPDC Finance limited, which is the first NBFI in Bangladesh and a renowned financial institution. In the part, it is mentioned how IPDC perform and what are they. And lastly, some challenges and recommendations are given and my experience about internship in IPDC Finance limited illustrated with key responsibilities I have been assigned and my favorable outcomes.