Bangladesh Bank’s fund for a green garment sector

The document examines the Green Transformation Fund (GTF), a $200 million initiative by Bangladesh Bank to reduce the environmental footprint of Bangladesh's garment and manufacturing industries by providing loans for green capital machinery.

• The ready-made garment sector is a critical economic driver for Bangladesh, contributing 12.26 percent to the national gross domestic product from 2017-2018, but it is also highly polluting. In 2015, 50 garment and textile industries in Dhaka alone emitted 58,177 tonnes of carbon dioxide, and the industry is estimated to use 1,500 million cubic meters of water, primarily groundwater.
• Launched in 2016, the $200 million Green Transformation Fund (GTF) provides US dollar loans with terms of five to ten years and a one-year grace period to help export-oriented and leather manufacturing industries purchase environment-friendly capital machinery. Eligible uses include renewable energy, energy efficiency, waste management, and water-use efficiency.
• As of 2018, the GTF had provided $130,000 to two ready-made garment industries, Goodrich Sweater Ltd and Skyline Apparels, via South East Bank, with an additional $1.35 million in projects in the pipeline.
• The GTF faces implementation hurdles, specifically a lengthy project approval process and a narrow focus on capital machinery. Private sector entrepreneurs prefer a composite fund that covers a broader range of sustainability measures rather than just machinery imports.

APA

Verma, S. (2020). Bangladesh Bank’s fund for a green garment sector. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Bangladesh-Bank-Case-Study-2.pdf

Chicago

Verma, Simant. Bangladesh Bank’s fund for a green garment sector. Climate and Development Knowledge Network, 2020. https://cdkn.org/sites/default/files/files/Bangladesh-Bank-Case-Study-2.pdf.

Wikipedia

{{cite report |last1=Verma |first1=Simant |title=Bangladesh Bank’s fund for a green garment sector |publisher=Climate and Development Knowledge Network |date=May 2020 |url=https://cdkn.org/sites/default/files/files/Bangladesh-Bank-Case-Study-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{verma2020bangladesh, author = {Verma, Simant}, title = {{Bangladesh Bank’s fund for a green garment sector}}, institution = {Climate and Development Knowledge Network}, year = {2020}, month = may, url = {https://cdkn.org/sites/default/files/files/Bangladesh-Bank-Case-Study-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }