Sustainable banking suffers due to lack of funding, capacity: Experts

Business Report :
Experts at a conference said that Bangladesh lacked financial resources and capacity for sustainable finance and green growth.

They emphasized the necessity for government policy support and incentives to expedite green growth within the nation.

Bangladesh Institute of Bank Management organized the conference titled “Sustainable Banking and Finance” at its auditorium in the capital on Saturday.

AKM Sohel, joint secretary of the Economic Relations Division said there is a significant funding gap for climate change adaptation.

He pointed out that implementation of the National Adaptation Plan (2023-2050) required $230 billion, while current annual expenditure stood at a mere $1 billion.

To bridge this funding gap by 2030, a minimum of $5 billion is essential.

Sohel emphasized that investing in climate change adaptation was non-negotiable, covering both adapting to climate change and mitigating its consequences.

Private sector in the country has not responded in sustainable financing as expected, he noted.

He recommended that every bank established at least one climate unit and appointed a knowledgeable individual to promote climate literacy.

Kazi Sayedur Rahman, deputy governor of the Bangladesh Bank, expressed concern about significant lag in utilizing the funds received.

He stressed the need to shift public mindset, asserting that without this shift, achieving goals through the funding mechanism would be challenging.

BIBM professor Shah Md Ahsan Habib stressed the necessity for a strategic framework, supportive regulatory framework, robust incentive structure and capacity development arrangements to ensure the desired impact of green growth activities.