Skip to main content
Top

2019 | OriginalPaper | Chapter

22. Green Finance in Bangladesh

Barriers and Solutions

Author : Monzur Hossain

Published in: Handbook of Green Finance

Publisher: Springer Singapore

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

This chapter provides an overview of Bangladesh’s green financing status, with a focus on the renewable energy (RE) sector, particularly the potential for and the impediments to expanding RE projects. As a case study, this chapter analyzes various aspects of a successful solar home system (SHS) program, which the Infrastructure Development Company Limited (IDCOL) implemented, to understand the risks and potential of a renewable energy project. It also highlighted that though the Bangladesh Bank has formulated green banking guidelines, the lack of capacities of banks and financial institutions, the lack of a proper understanding of the risks and returns of green projects, and the underdeveloped equity and bond markets hamper the expected growth of green financing in Bangladesh. Therefore, this chapter suggests that the capacity building of banks and financial institutions, the development of bond and equity markets, a well-coordinated policy oversight body and appropriate incentive structure for the private sector are some key policy issues that Bangladesh needs to address to promote green projects and achieve sustainable development.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Appendix
Available only for authorised users
Literature
go back to reference Bangladesh Bank (2016a) Annual report. Bangladesh Bank, Dhaka Bangladesh Bank (2016a) Annual report. Bangladesh Bank, Dhaka
go back to reference Bangladesh Bank (2016b) Quarterly report. Bangladesh Bank, Dhaka Bangladesh Bank (2016b) Quarterly report. Bangladesh Bank, Dhaka
go back to reference Barnes DF, Halpern J (2000) The role of energy subsidies. Energy services for the world’s poor. Energy Sector Management Assistance Program (ESMAP), USA Barnes DF, Halpern J (2000) The role of energy subsidies. Energy services for the world’s poor. Energy Sector Management Assistance Program (ESMAP), USA
go back to reference Das BK, Hoque SM (2014) Assessment of the potential of biomass gasification for electricity generation in Bangladesh. J Renew Energy 2014:1–10. Article ID 429518CrossRef Das BK, Hoque SM (2014) Assessment of the potential of biomass gasification for electricity generation in Bangladesh. J Renew Energy 2014:1–10. Article ID 429518CrossRef
go back to reference Hossain M, Rahman M, Rahman A (2018) Impact of energy price adjustments on Bangladesh economy: a macro-econometric modeling approach. BIDS-REF Study Series No. 15-02. Bangladesh Institute of Development Studies, Dhaka Hossain M, Rahman M, Rahman A (2018) Impact of energy price adjustments on Bangladesh economy: a macro-econometric modeling approach. BIDS-REF Study Series No. 15-02. Bangladesh Institute of Development Studies, Dhaka
go back to reference Hossain M, Asaduzzaman M, Yunus M, Jamaluddin A, Alam KE, Zabid I, Roy PK (2018) Assessing the Current Situation of Solar Home System (SHS) Program of IDCOL and Recommending Action Plan, unpublished, Infrastructure Development Company Limited (IDCOL) Hossain M, Asaduzzaman M, Yunus M, Jamaluddin A, Alam KE, Zabid I, Roy PK (2018) Assessing the Current Situation of Solar Home System (SHS) Program of IDCOL and Recommending Action Plan, unpublished, Infrastructure Development Company Limited (IDCOL)
go back to reference Huq S (2016) Climate finance in Bangladesh. The Daily Star. 16 April Huq S (2016) Climate finance in Bangladesh. The Daily Star. 16 April
go back to reference IDCOL Survey (2015) A survey conducted to study on gradual reduction of subsidy under IDCOL’s SHS Program. Unpublished, Infrastructure Development Company Limited (IDCOL) IDCOL Survey (2015) A survey conducted to study on gradual reduction of subsidy under IDCOL’s SHS Program. Unpublished, Infrastructure Development Company Limited (IDCOL)
go back to reference Infrastructure Development Company Limited (IDCOL) (2016) Annual report. IDCOL, Dhaka Infrastructure Development Company Limited (IDCOL) (2016) Annual report. IDCOL, Dhaka
go back to reference Khan A, Khan BF, Uddin N, Azim GIA, Islam S (2017) Financing green growth in Bangladesh: challenges & opportunities. UKAID, Dhaka Khan A, Khan BF, Uddin N, Azim GIA, Islam S (2017) Financing green growth in Bangladesh: challenges & opportunities. UKAID, Dhaka
go back to reference Khandker SR, Samad HA, Sadiqi ZKM, Mohammed A, Yunus M, Enamul HAK (2014) Surge in solar-powered homes: experience in off-grid rural Bangladesh. World Bank, Washington, DCCrossRef Khandker SR, Samad HA, Sadiqi ZKM, Mohammed A, Yunus M, Enamul HAK (2014) Surge in solar-powered homes: experience in off-grid rural Bangladesh. World Bank, Washington, DCCrossRef
go back to reference Miere P (2003) Economic analysis of solar homes system: a case study for the Philippines. Prepared for the Asia Alternative Energy Program (ASTAE), Energy and Mining Sector Development Unit (EASEG), East Asia and Pacific Region, World Bank, Washington, DC, p 23 Miere P (2003) Economic analysis of solar homes system: a case study for the Philippines. Prepared for the Asia Alternative Energy Program (ASTAE), Energy and Mining Sector Development Unit (EASEG), East Asia and Pacific Region, World Bank, Washington, DC, p 23
go back to reference Mir-Artigues P, del Río P (2016) The economics and policy of solar photovoltaic generation. Springer, SwitzerlandCrossRef Mir-Artigues P, del Río P (2016) The economics and policy of solar photovoltaic generation. Springer, SwitzerlandCrossRef
go back to reference Mostert W (2001) Rural electrification subsides in the Philippines. Policy recommendations for optimized use of re-subsidies and the national lifeline rate, vol 1. Report to the Department of Energy, National Electrification Administration, and the World Bank, East Asia and Pacific Region Mostert W (2001) Rural electrification subsides in the Philippines. Policy recommendations for optimized use of re-subsidies and the national lifeline rate, vol 1. Report to the Department of Energy, National Electrification Administration, and the World Bank, East Asia and Pacific Region
go back to reference Power Division (2013) 500 MW solar programme 2012–2016. Ministry of Power, Energy & Mineral Resources, Government of the People’s Republic of Bangladesh, Dhaka Power Division (2013) 500 MW solar programme 2012–2016. Ministry of Power, Energy & Mineral Resources, Government of the People’s Republic of Bangladesh, Dhaka
go back to reference Shakil MH, Azam MKG, Raju MSH (2014) An evaluation of green banking practices in Bangladesh. Eur J Bus Manag 6(31):8–16 Shakil MH, Azam MKG, Raju MSH (2014) An evaluation of green banking practices in Bangladesh. Eur J Bus Manag 6(31):8–16
go back to reference Sustainable and Renewable Energy Development Authority (SREDA) (2015) Scaling up renewable energy in low income countries (SREP): investment plan for Bangladesh. Ministry of Power, Energy & Mineral Resources, Government of the People’s Republic of Bangladesh, Dhaka Sustainable and Renewable Energy Development Authority (SREDA) (2015) Scaling up renewable energy in low income countries (SREP): investment plan for Bangladesh. Ministry of Power, Energy & Mineral Resources, Government of the People’s Republic of Bangladesh, Dhaka
go back to reference UNDP (2016) Strengthening finance for the 7th five year plan and SDGs in Bangladesh. ERD, Ministry of Finance, Dhaka UNDP (2016) Strengthening finance for the 7th five year plan and SDGs in Bangladesh. ERD, Ministry of Finance, Dhaka
go back to reference Urmee T, Harries D (2009) A survey of solar PV program implementers in Asia and the Pacific regions. Energy Sustain Dev 13(1):24–32CrossRef Urmee T, Harries D (2009) A survey of solar PV program implementers in Asia and the Pacific regions. Energy Sustain Dev 13(1):24–32CrossRef
go back to reference Yamamoto Y (2017) Feed-in tariffs combined with capital subsidies for promoting the adoption of residential photovoltaic systems. Energy Policy 111:312–320CrossRef Yamamoto Y (2017) Feed-in tariffs combined with capital subsidies for promoting the adoption of residential photovoltaic systems. Energy Policy 111:312–320CrossRef
go back to reference Yoshino N, Taghizadeh-Hesary F (2018) Alternatives to private finance: role of fiscal policy reforms and energy taxation in development of renewable energy projects. In: Anbumozhi V, Kalirajan K, Kimura F (eds) Financing for low-carbon energy transition: unlocking the potential of private capital. Springer, Singapore Yoshino N, Taghizadeh-Hesary F (2018) Alternatives to private finance: role of fiscal policy reforms and energy taxation in development of renewable energy projects. In: Anbumozhi V, Kalirajan K, Kimura F (eds) Financing for low-carbon energy transition: unlocking the potential of private capital. Springer, Singapore
Metadata
Title
Green Finance in Bangladesh
Author
Monzur Hossain
Copyright Year
2019
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-13-0227-5_2

Premium Partner