Low-cost and easily available loans are key to promoting green power in Bangladesh, speakers said at a virtual seminar on Sunday.
Attaching importance to renewable energy, they also urged the government, central bank, financial institutions, and private sector to play due role in promoting the sector by ensuring access to sustainable finance.
In such case, they said, Bangladesh can bring good business models, if necessary, from others who have proven to be successful in funding green power.
President of Bangladesh Solar and Renewable Energy Association (BSREA) Dipal C Barua chaired the seminar titled 'Access to Sustainable Finance for Green Energy'.
BSREA organised the event in collaboration with Bangladesh Bank, Sustainable and Renewable Energy Development Authority (SREDA), and the GIZ.
General Manager of Bangladesh Bank Khondkar Morshed Millat presented a keynote paper at the seminar moderated by former SREDA member Siddique Zobair.
Speaking as the chief guest, planning minister M A Mannan said although developed countries are generating power from solar, offshore tidal and wind power, Bangladesh is still tied to coal and other fossil fuels including nuclear.
"It's time for us that we think in advance and try to adopt new technologies. That's very important," he said.
To stay with mainstream, the minister said, someone requires mental attitude that he or she wants to be modern and wants to be with the world. "It is very important for a country like Bangladesh."
"You cannot become modern unless you become modern in your thoughts and your attitudes. Unfortunately, Bangladesh still has a lot to do in this area," Mr Mannan said.
Many people say the neighbouring country is doing better in this case. Bangladesh can pick their formulae as learning from others is nothing wrong, he added.
Mr Mannan also suggested that the central bank should do whatever needed to promote green energy inline with the demand of time.
Speaking as the special guest, deputy governor of Bangladesh Bank Abu Farah Md Nasser said the central bank will re-examine how the cost of loans for green energy can be minimised.
"Bangladesh is highly vulnerable to environmental pollution and climate change impacts," he said, adding, "Sustainable economic activities and clean business practice are the key elements that we must prioritise."
SREDA chairman Mohammad Alauddin said the issue is there how the interest rate of loan or green energy can be lowered.
He stressed the need for building awareness among field-level bankers about the importance of financing the green energy.
Managing Director of Mutual Trust Bank Syed Mahbubur Rahman said considering the global climate and warming situation, green energy is very important compared to fossil fuel.
"The government is setting up industrial zones in different parts of the country. If we can integrate renewable energy as a part of project cost, we can finance," he said.
He also proposed a risk sharing model for funding the green energy projects where Bangladesh Bank and government can bear some risks against the loans.
Bangladesh Bank executive director Nurun Nahar, deputy chief executive of Infrastructure Development Company Limited (IDCOL) S M Monirul Islam, GIZ Programme Coordinator Al Mudabbir Bin Anam, and BSREA vice president Engr Nurul Aktar also spoke at the programme.
