Consideration of funding proposals – Addendum X Funding proposal package for FP150

The proposal seeks USD 256.48 million from the GCF to reduce greenhouse gas emissions in Bangladesh's textile and RMG industries. The program combines concessional loans for equipment upgrades with technical assistance to overcome financial and technical barriers, targeting a total emission reduction of 14.53 million tCO2eq over 20 years.

• The program aims to reduce or avoid approximately 14.53 million tCO2eq of greenhouse gas emissions over the 20-year lifetime of the investments.
• Total financing for the program is USD 340.50 million, consisting of USD 256.48 million requested from the GCF (USD 250 million in loans and USD 6.48 million in grants) and USD 84.02 million in co-financing.
• The program is divided into five components: Component 1 (USD 133 million for textile sector equipment), Component 2 (USD 3.05 million TA for textile sector), Component 3 (USD 200 million for RMG sector equipment), Component 4 (USD 2.30 million TA for RMG sector), and Component 5 (USD 1.15 million TA for national regulatory frameworks).
• The RMG sector is identified as the most energy-intensive industrial sub-sector in Bangladesh, consuming 15.4% of total industrial energy demand.
• The textile sector is the second largest energy-consuming industrial sub-sector, accounting for 12.4% of consumption.
• A primary barrier to energy efficiency is the high upfront cost of equipment; for example, energy-efficient spinning machines are approximately 25% more expensive than conventional ones.
• The program targets a specific interest rate range of 5.0% to 7.5% to make energy-efficient equipment attractive to unit owners, as commercial rates typically range from 9% to 15%.
• The program includes a Gender Action Plan to address disparities, noting that while women make up 80% of the RMG workforce, they are severely underrepresented in management, with only 0.5% of managers being female.
• The Independent Technical Advisory Panel (TAP) recommended the program be considered on the condition that the AE monitors and reports the actual annual energy consumption of both the financed energy-efficient equipment and the replaced inefficient equipment.
• The program's expected economic internal rate of return (EIRR) is 23.00% for the textile sector and 44.5% for the RMG sector.

APA

Green Climate Fund (2020). Consideration of funding proposals – Addendum X Funding proposal package for FP150. https://www.greenclimate.fund/sites/default/files/document/gcf-b27-02-add10-rev01.pdf

Chicago

Green Climate Fund. Consideration of funding proposals – Addendum X Funding proposal package for FP150. 2020. https://www.greenclimate.fund/sites/default/files/document/gcf-b27-02-add10-rev01.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Consideration of funding proposals – Addendum X Funding proposal package for FP150 |date=3 November 2020 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b27-02-add10-rev01.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2020consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals – Addendum X Funding proposal package for FP150}}, institution = {Green Climate Fund}, year = {2020}, month = nov, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b27-02-add10-rev01.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }