WIT Press

Development Of Renewable Energy Financing In Bangladesh In Response To The Central Bank’s Policy Initiatives


Free (open access)





Page Range

33 - 43




452 kb

Paper DOI



WIT Press


S. M. Ahsan Habib, P. Shah


The public concern of the state of energy and environment has been growing rapidly mainly due to growing energy use, increasing environmental degradation and declining non-renewable energy resources. Financial institutions hold a unique position in an economic system that can affect economic activities through their financing activities, and thus also can influence energy sustainability. Financial institutions of Bangladesh are undertaking energy sustainability initiatives mainly as part of their green banking and financing activities. In the financial sector, related development is taking place mainly in response to the initiatives undertaken by the central bank- Bangladesh Bank. Especially, the ‘Green Banking Policy Framework’ of the central bank requires banks to save energy resources and financing renewable energy sector. The central bank is also offering refinancing facilities to the commercial banks to finance renewable energy sector. There is no doubt that a sustainable energy planning and implementation is the need of the time and green financing might be a critical positive force not only to handle the growing energy demand but also to minimize environmental degradation. Alongside banks and other financial institutions, some of the stakeholders are responding positively to the initiatives of the central bank. On the above background, the paper is about examining the renewable energy initiatives of the central bank of Bangladesh and illustrating the responses of the financial sector to the sustainable energy initiatives. The paper, a case based study, identifies that renewable energy financing received tremendous momentum in the country in recent years that have already started offering noteworthy benefits to the low income rural people.


renewable energy, green banking, refinancing, energy efficiency, energy sustainability