Dhaka, Bangladesh, January 24, 2012—IFC,
a member of the World Bank Group, has released a study that found huge
opportunities for financial institutions looking to support energy efficiency
The study, the first of its kind, was carried out by the SouthAsia Enterprise
Development Facility, which is managed by IFC in partnership with the U.K.
Department for International Development, the Norwegian Agency for Development
Cooperation, and the Bangladesh Bank. The report examined 11 energy-intensive
industries and found significant potential for companies to go green, which
in turn means opportunities for lenders and investors. Financing needs
for energy efficiency in the textiles sector alone are Taka 11 billion.
"Sustainable energy finance is a great opportunity for banks to cross-sell
financial products to their existing clients and also acquire new ones,”
said Panayotis Varangis, IFC global head for small and medium enterprises/business.
“First mover banks have an advantage over their latecomer competitors."
The study found significant room for improving energy efficiency in a host
of industries. For example, if the textile sector becomes fully energy-efficient,
over 47,000 metric tons of carbon dioxide emissions can be saved.
“Environmentally friendly financing adds forward momentum to business
in Bangladesh,” said Kyle F. Kelhofer, IFC Country Manager. “It also
reduces carbon emissions and adds tangible value to Bangladesh’s aspiration
to go green.”
At the launch of the report, titled “Industry Specific Study on Sustainable
Energy Finance Potential for Financial Institutions in Bangladesh,” IFC
brought together industry specialists, lenders, representatives of financial
institutions, and multilateral donors to discuss the potential of sustainable
“The study is a well thought out and timely initiative of Bangladesh Bank
and IFC that highlights opportunities and the means to attain them,” said
Chowdhury Mohidul Haque, Bangladesh Bank Executive Director. “By housing
the report in the Bangladesh Bank website, we are sending a clear signal
to financial institutions that we are proactively seeking a green banking
sector in our country.”
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,