IDCOL to get $256.5m to promote energy efficiency in RMG

Infrastructure Development Company Limited (IDCOL) has signed a Funded Activity Agreement (FAA) with Green Climate Fund (GCF) as its direct access entity to receive $256.5 million concessional financing to promote energy efficiency in textile and RMG sectors of Bangladesh.

This is the first concessional GCF credit line for Bangladesh, as well as the first private sector financing of GCF in the country, said a press release.

This fund will catalyse climate finance in low-emission and climate-resilient development of the industrial sector.

The signing ceremony was held online on Wednesday.

Sharifa Khan, Secretary of Economic Relations Division and Focal Point of NDA to GCF as well as Chairman of IDCOL, mentioned that the Program rightfully chose the two main industrial sectors of Bangladesh that have the potential to pursue sustainable energy management to contribute to the global carbon emission reduction.

She also emphasised strengthening the relationship between GCF and Bangladesh to achieve the country’s ambitious agenda to support green, clean and resilient development. Alamgir Morshed, Executive Director and CEO of IDCOL also expressed his hope and optimism in enhancing access to climate finance for the country. He thanked NDA and GCF for their continuous support in accessing the fund.