Bangladesh Bank Launches Tk 1,000 Crore Green Fund to Promote Sustainable Industrial Development

Bangladesh Bank has introduced a Tk 1,000 crore revolving Green Fund aimed at accelerating environmentally sustainable industrial development and encouraging investment in green infrastructure across the country.

The initiative is designed to support entrepreneurs and businesses seeking to establish eco-friendly factories, energy-efficient buildings and other environmentally responsible industrial projects. Through the fund, eligible applicants will be able to access long-term financing at a maximum interest rate of 5 percent, significantly lower than prevailing commercial lending rates.

According to the central bank, the scheme seeks to promote sustainable economic growth while helping industries adopt environmentally conscious practices that reduce carbon emissions and improve resource efficiency.
 

Under the financing framework, entrepreneurs can obtain term loans for a variety of green development initiatives, including the construction of certified green factories and environmentally sustainable industrial facilities. The fund is expected to play a key role in supporting Bangladesh’s broader climate and sustainability goals.
 

The loan tenure has been set between three and ten years, allowing businesses sufficient time to implement projects and generate returns. In addition, borrowers will be eligible for a grace period of up to one year, providing flexibility during the initial stages of project implementation.

To facilitate larger investments, Bangladesh Bank has set the maximum financing limit at Tk 100 crore per eligible project. The revolving nature of the fund means that repaid loans will be recycled to finance new projects, ensuring long-term support for green industrial transformation.

Industry experts believe the initiative could encourage greater private-sector participation in sustainable development by reducing financing costs and improving access to capital for environmentally friendly investments.

The launch of the Green Fund reflects Bangladesh Bank's ongoing efforts to integrate sustainability into the country's financial sector and support industries transitioning toward greener production methods. Policymakers expect the initiative to contribute to economic growth, environmental protection and enhanced competitiveness for Bangladeshi industries in global markets increasingly focused on sustainability standards.
 

As demand for environmentally responsible manufacturing continues to grow worldwide, the new financing facility is expected to provide a significant boost to businesses seeking to align with international green compliance and sustainability requirements.