In support of private sector investment through the widespread implementation of energy-efficient technology in the textiles and garment sector, Bangladesh earned $256.5 million from a global green climate fund (GCF). The Idcol, as the direct access entity (DAE) of the GCF, received the approval of the funding proposal for the program titled ‘Promoting private sector investment through large scale adoption of energy-saving technologies and equipment for Textile and Readymade Garment sectors of Bangladesh.’
It is the highest accepted financing proposal for any internationally certified GCF DAE. Under the scheme, Idcol will receive $250 million concessional loans for a 20-year term with a five-year grace period to finance energy-efficient equipment. The technological aid (grant) will include a further $6.5 million in assistance in developing the environment across areas such as capacity development, sensitization, loan funding and program parameters management and assessment. Of the $250 million in loans, $100 million will be used for funding projects in the textile industry, while $150 million for the financing of energy-efficient projects in the RMG sector will be channeled to four local financial institutions. The overall size of the initiative, with grants from Idcol, local finance and the project backers, will amount to $423.50 million.