Dr. Atiur Rahman
I want express my heartfelt congratulation to IDCOL for their excellent achievement. But, this is not only celebrating moment, but also turning point for green energy investment. WHY?
The energy sector poses a particular challenge for green growth given the scale of change required and the extent to which many countries are locked into polluting and greenhouse gas emitting energy sources. Thus, investment in green energy is inevitably necessary to be scaled up significantly to support the broader development, economic and climate agenda. Given strains on public finances, engaging private sector capital will be the key. Several obstacles, resulting from market and government failures–including fossil-fuel subsidies, the lack of supportive policies as well as outstanding barriers to international trade and investment–still hamper investment in renewable energy around the globe. A key challenge to catalyze investment flows in green energy is to design and implement clear and predictable domestic policy frameworks.To face the challenge, we have way to walk. I see the hope after having IDCOL on board. IDCOL is one of the very few corporate bodies and only financial institution in Bangladesh which has taken environment and sustainability into the heart of their business. It is an enormous pleasure for me that a government owned financial intermediary is pursuing environment-friendly practices in financing. IDCOL has adopted sustainability and environment in their vision, mission and core values. And it is getting the recognition as well–‘The achievement of Karlsruhe Sustainable Finance Award 2014’, ‘National Energy Globe Award Bangladesh 2014’ and ‘Asia Power and Electricity Award 2014’. Its contribution to the entire nation is enormous. IDCOL as scheduled NBFI of BB has already installed about 3.2 million SHSs in the off-grid rural areas of Bangladesh till April 2014. As a result, 13 million beneficiaries are getting solar electricity which is around 9% of the total population of Bangladesh. IDCOL has a target to finance 6 million SHS by 2017, with an estimated generation capacity of 220 MW of electricity. IDCOL is contributing not only to the power sector but also to poverty alleviation, rural development and improving the quality of living in the rural areas. Because, the major investment in renewable energy and energy efficiency by IDCOL goes the rural areas and comparatively lower income group. So, this is not only a business achievement but also a national economic, social and environmental achievement. Thus, this is the celebrating moment for the entire financial sector and I personally feel proud of having such a financial institution in our regulatory jurisdiction. IDCOL is the pathfinder for the other financial institutions and banks. My dream, my endeavor, my urge is green finance dominant investment portfolio in each and every bank and financial institution. Bangladesh Bank is thriving for each and every moment in this regard. We have brought 47 green products under BB refinance scheme where 23 are green energy products. If any bank or FI will come up with innovative green product that truly contributes in environmental conservation, BB will seriously study that for further decision. We will also try to enhance the size of our refinance scheme so that we would be able to facilitate large scale investments in green alternatives. We have set annual target to banks and financial institutions for direct finance which will be mandatory from January 2015. Because, green growth cannot be achieved without green investment. Shifting the investment from fossil-fuel to green energy is the only way for transforming economic growth paths. It’s mentionable, banks and FIs have disbursed Tk. 826,298.48 million as green finance from January 2012 to June 2014.
The persistent and diverse efforts have been pursued by Bangladesh Bank to integrate investment for environmental and social sustainability. Array of issuance of guidelines and instructions on sustainable banking issues like green banking and environmental risk management have been performed since 2011. To promote banks and FIs in financing green and environment friendly ventures, we have created refinancing windows. We are committed to practice digital, nearly paperless, sustainable, green banking operations by making best use of the information technology and related professional skills. Our different initiatives particularly IT based green banking activities through online banking, e-banking, e-commerce, online CIB, mobile-banking, automated clearing house, e-tendering abd e-recruitment are moving ahead in full swing.
I am an extremely optimistic person. I always have high hope about Bangladesh and enormous trust on the resilience of its hardworking people. I cannot leave hope on Bangladesh. How can I? Even during a national power failure, my countrymen showed their tolerance, prudence and patience. And, this crisis has taught us a big lesson. We have to transform power generation through renewable, efficient and alternative energy.
(Taken from an address delivered at the green energy exposition of IDCOL by Bangladesh Bank Governor Dr. Atiur Rahman at Sonargaon Hotel in Dhaka on Thursday)
