Sustainable finance presents Bangladesh with verdant possibilities

With its geography largely consisting of low-lying delta plains and its high-density population, Bangladesh is exceptionally vulnerable to climate change. It is ranked as one the seventh most vulnerable countries in the Global Climate Risk Index (CRI). The Bangladesh government has taken a wide range of measures to combat the effects of climate change and has been lauded for its policies and strategies. The country's central bank is playing an active role in engaging the financial sector in order to channel financial resources to address the challenges of climate change. As per the guidelines, banks must lend 5 percent of their loan as Green Finance and 20 percent as Sustainable Linked Finance.

Overall, as per the SDG progress report 2020, Bangladesh has performed better than other countries in addressing climate change. However, it is estimated that 4.5 percent of GDP would be required to integrate environmental protection with our growth strategy. Significant investments will be required in green technology and infrastructure for which innovative financing solutions from different sources are essential.