BRAC Bank’s varied activities under sustainable banking ranges from Environmental & Social Management System, promotion of green finance, organizational capacity development to multidimensional stakeholder management, creating a solid pathway towards a greener future.
BRAC Bank is a private commercial bank in Bangladesh, operated by the BRAC development organisation, focused on Small and Medium Enterprises, with headquarters in Dhaka.
Under the collaboration, Brac Bank and IDCOL have secured USD 150 million from the Green Climate Fund, a global fund dedicated to assisting developing countries in climate change mitigation and adaptation efforts. The project's primary objective is to facilitate the adoption of sustainable technologies, energy efficiency measures, and green practices in Bangladesh's textile and RMG industries, thereby minimizing the carbon footprint and reducing environmental impact.
Green Climate Fund (GCF) works through a partnerships approach, which positions us uniquely to serve as a bridge for developing countries in navigating a complex climate financing landscape. Within this partnership network, GCF plays a catalytic role that is complementary to other sources of climate finance: unlocking projects that would not have happened without GCF financing or which would not have otherwise internalized rigorous climate considerations. In this way, the Fund complements multilateral development banks, development finance institutions and other partners to crowd in investment into low-emission, climate-resilient development, while also taking a leading role in driving a greater share of climate finance into adaptation. Through its partnerships approach, GCF acts not just as a catalyst of finance, but also of strengthened decision-making and institution building, promoting the uptake of class-leading environmental, social and gender standards.
The Safe Water for All project, involving a partnership between BRAC, Grundfos, and Hydro Industries Ltd., aims to create a commercially viable business model for cleaning industrial effluent and to ensure safe drinking water in Bangladesh. This dual aim will be achieved through the installation of Water Treatment Plants and Effluent Treatment Plants, both of which will work towards SDG 8 by creating jobs in the water sector.
60% of people in Bangladesh do not have access to safe drinking water. Around 35 million people live in coastal districts where drinking water is heavily contaminated and industrial pollution also affects the populations in the industrial areas around Dhaka. As the access to water is controlled and can be expensive, there is an overall high demand for affordable safe water. The Covid-19 pandemic has furthermore impacted jobs and livelihoods in Bangladesh, in particular short-term employment in the informal sector. At the height of the pandemic in 2020, 72% of the people were unemployed.
Brac Bank Limited joined a UK-based firm in an electric vehicles project in Bangladesh. The project of Ricardo-AEA Limited aims to enable the country’s businesses to have access to finance and investment in new electric vehicles.
Ricardo-AEA Limited is a UK-based international energy and environmental consulting firm.
In the project, experts from Ricardo, IDCOL and other Bangladeshi organizations such as Light Castle Partners and Policy Exchange will scope scalable inclusive business models. They also ensure an enabling financing ecosystem for individual transport providers, small medium enterprises (SMEs) and cooperatives with an aim for electric vehicle uptake in Bangladesh.
BRAC Bank will support Ricardo in conducting the demands and need assessment surveys among the micro, small and medium enterprises (MSMEs). It will also evaluate the current financing options before developing a financing product for banks and financial institutions in Bangladesh. The project will also support organisations in developing business plans and making applications for funding to banks.
Ricardo has received funding for the project from the UK government for business, energy and industrial strategy (BEIS) under its UK PACT (Partnering for Accelerated Climate Transitions) and Green Recovery Challenge Fund (GRCF). UK PACT is a capacity building programme under the UK’s international climate finance portfolio.
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30+ Corporate, Development sector Leaders, Environment Activists and Policymakers will join in on June 5, 2023 for a day-long series of events on fighting climate change.