IFC, Bangladesh Bank, and Financial Institutions Join Forces to Combat Climate Change

In Dhaka: 
Shazia Ahmed  
Phone: 0171-411-0580 
E-mail: SAhmed15@ifc.org 




Dhaka, Bangladesh, November 2, 2009—IFC, a member of the World Bank Group, has 
formed a partnership with the Bangladesh Bank and local financial institutions 
to introduce systemic change in the way banks do business to increase 
investments in sustainable energy finance.  

During an official visit to Dhaka, Rachel Kyte, IFC Vice President for Business 
Advisory Services, met with Bangladesh Bank’s governor and leaders of 40 
financial institutions to discuss ways to make sustainable energy finance 
available to small and medium enterprises. The partnership is expected to help 
banks increase their sustainable energy finance portfolios and decrease their 
nonperforming loans by making them more aware of environmental risks. 
  
Kyte also encouraged banks to apply for the Financial Times Sustainable Banking 
Awards to promote this innovative way of doing business.  These awards were 
created in 2005 and now are viewed as leading global awards in the field of 
sustainable banking. They recognize financial institutions that have shown 
leadership and innovation in integrating social, environmental, and corporate 
governance practices into their operations.  In 2008, three Bangladeshi 
institutions applied for the award—ASA, BRAC Bank, and Integrated Development 
Foundation. 
   
“We welcome many more entries this year,” Kyte said.  “Bangladesh has the 
potential to become a global leader in sustainable finance.” 

Bangladesh Bank created a revolving fund to finance effluent treatment plants 
and biogas and solar projects.  Financial institutions can use this fund to 
offer small and medium enterprises financing. 

The South Asia Enterprise Development Facility, managed by IFC in partnership 
with the United Kingdom’s Department for International Development and Norad, 
is providing advisory support to  Bangladesh Bank and the financial sector to 
train bankers on energy efficiency and renewable energy financing. 

Under this project, IFC celebrated the first sustainable energy finance loan 
sanctioned in Bangladesh.  IFC worked with Eastern Bank Ltd to process a loan 
to a dairy farm, Utility Animal House Ltd, to enable the farm to install a 
biogas plant that will generate 4.4  kilowatts of electricity daily from cow 
dung. 
   
“This is a highly profitable investment that reduces emissions in two ways: by 
replacing diesel fuel with a renewable energy  source, and by reducing methane 
emissions by properly managing farm waste,” said Afifa Raihana, IFC Project 
Officer.  “This model can easily be replicated across Bangladesh.” 

About IFC 
IFC, a member of the World Bank Group, creates opportunity for people to escape 
poverty and improve their lives. We foster sustainable economic growth in 
developing countries by supporting private sector development, mobilizing 
private capital, and providing advisory and risk mitigation services to 
businesses and governments. Our new investments totaled $14.5 billion in fiscal 
2009, helping channel capital into developing countries during the financial 
crisis. For more information, visit www.ifc.org.