PROJECT: Building Readiness of the Private Sector in Bangladesh for Green Climate Fund (GCF) Accreditation
Project Reference: TAAS-59
The Government of Bangladesh (GoB) has taken a number of prudent steps to create an enabling environment for the private sector to accelerate overall national economic development. Bangladesh being particularly vulnerable to the impacts of climate change, and its economy highly dependent on the private sector that significantly contributes to the Gross Domestic Product and employment, requires proactive support from private sector to also better invest in and implement climate action.
Although private sector in Bangladesh has been playing its due role as an effective economic agent (74.55 percent of total investment in the national economy came from private sector in year 2013-2014 ) and making substantial contribution to the overall economic development of the country in energy, infrastructure and, technology sectors, private sector investment on climate action hasn’t gained impactful momentum.
There is a robust and dynamic private sector in Bangladesh which can capitalise on opportunities provided by international climate finance. Bangladesh has struggled with engaging the private sector in a meaningful way to support businesses in their role as a critical engine of climate compatible development. This has been partly due to shortage of knowledge, capacity and skills required to mobilise private actors on climate compatible development .
Since CDKN aims to support business as a driver of climate compatible development, private banks and financial institutions in Bangladesh requested CDKN’s support in building their capacity and raising awareness on climate finance mechanisms particularly to support access to international funds from the Private Sector Facility window of Green Climate Fund.
CDKN will provide support through three components:
1. Awareness raising – Informing private sector on the opportunity presented by climate compatible development and the GCF and building consensus on the role of the private sector in addressing climate change in Bangladesh
2. Institutional Assessment – Support the Government of Bangladesh with information to help with an informed decision making process for selection of right entity/entities for accreditation to Private Sector Facility
3. Strengthening institutional capacities – Support private banks and financial institutions to gain strategic access to and use of climate finance resources for implementation of climate mitigation and adaptation activities
Click here to read flyer for more details on project activities and timeline.
How can Bangladesh’s private sector engage with the Green Climate Fund?
The Green Climate Fund (GCF) aims to help developing countries achieve their ambition for low-carbon resilient development. And while the private sector in Bangladesh has shown interest in seizing the opportunities offered by the fund, it has not had the knowledge it needs to access it. This toolkit aims to address this situation, providing a snapshot of GCF mechanisms, processes and procedures, giving potential applicants the necessary information to effectively engage with the fund and its Private Sector Facility (PSF). It is designed for use by commercial banks, micro, small and medium-sized enterprises (MSMEs), suppliers and manufactures or investors that want to channel and manage GCF funds towards climate-relevant projects and programmes, or develop and implement projects themselves. Click here to download the toolkit.
CDKN Funding: £120,000
Project Manager: Areej Riaz (firstname.lastname@example.org)