Carbon & Climate Finance in Bangladesh
Bangladesh stands at the frontline of global climate risk and at the forefront of climate finance innovation. Recognizing the urgent need to balance economic growth with environmental resilience, the Government of Bangladesh, led by Bangladesh Bank, has established a robust ecosystem of carbon and climate finance instruments supported by multilateral development partners such as the United Nations, World Bank, IFC, ADB, and other DFIs.
At DKS Capital Advisory, we provide specialized green refinancing and climate fund advisory services, enabling businesses, financial institutions, and project sponsors to access, structure, and deploy climate-aligned capital with confidence and compliance.
Bangladesh Bank’s Green Finance Framework: A National Climate Finance Architecture
Bangladesh Bank defines green finance as a core pillar of its broader Sustainable Finance Framework, designed to reduce carbon emissions, minimize environmental degradation, and strengthen climate resilience across the economy.
To operationalize this vision, Bangladesh Bank has established clear green finance categories, mandatory lending targets, and concessional refinance mechanisms—transforming policy intent into measurable climate action.
Key initiatives include:
-
Mandatory green lending targets for banks and financial institutions
-
Environmental & Social Risk Management (ESRM) guidelines
-
Low-cost refinance and transformation funds
-
Alignment with international safeguard and ESG standards
Key Carbon & Climate Funds and Instruments in Bangladesh
Bangladesh’s climate finance ecosystem includes:
Green Transformation Fund (GTF)
A flagship refinance facility supporting:
-
Renewable energy
-
Energy efficiency and resource efficiency
-
Environment-friendly industrial transformation
-
Export-oriented green manufacturing
Green & Sustainable Refinance Schemes
Including Bangladesh Bank refinance pools for:
-
Renewable and alternative energy
-
Waste management and recycling
-
Green buildings and brick kilns
-
Green CMSMEs and agriculture
Carbon-Linked & Climate-Aligned Financing
Projects aligned with:
-
Climate mitigation and adaptation
-
Emission reduction and resource efficiency
-
ESG-compliant infrastructure and industry
“Climate finance is most powerful when capital flows align with resilience, responsibility, and long-term economic value.”
Bangladesh Bank’s 12 Green Finance Categories: Enabling Climate Action
Bangladesh Bank has identified 12 core green finance categories, covering:
-
Renewable & alternative energy
-
Energy and resource efficiency
-
Liquid & solid waste management
-
Recycling and circular economy
-
Green buildings and eco-friendly brick production
-
Green agriculture and aquaculture
-
Green CMSMEs and socially responsible financing
These categories provide a clear roadmap for banks, investors, and businesses to align projects with climate goals while maintaining financial discipline.
Why Carbon & Climate Finance Matters for Bangladesh
Climate and carbon finance is not only about environmental protection; it is about economic resilience and future competitiveness:
-
Climate resilience against floods, cyclones, and sea-level rise
-
Lower transition risk for industries and exporters
-
Access to global capital and concessional funding
-
Enhanced ESG credibility and international market access
-
Job creation and green industrial growth
Bangladesh’s leadership in green finance is increasingly recognized as a model for climate-vulnerable economies worldwide.
Our Value Proposition
What distinguishes DKS Capital Advisory is our integrated climate finance approach:
-
Policy-aligned
-
Finance-focused
-
ESG- and safeguard-compliant
-
Practically implementable
We help clients unlock concessional capital, reduce financing costs, manage climate risk, and demonstrate credible sustainability performance.
visory helps organizations understand their environmental footprint, demonstrate responsible operations, and communicate credible sustainability commitments to regulators, financiers, and customers.
We believe responsible development is not a constraint on growth, it is the foundation of resilient, future-ready business.
DKS Capital Advisory’s Role: Green Refinancing & Climate Fund Advisory
DKS Capital Advisory acts as a strategic bridge between policy, finance, and implementation.
We support clients with:
-
Green refinancing advisory under Bangladesh Bank schemes (GTF, green refinance pools, etc.)
-
Climate fund mapping and eligibility assessment
-
Structuring projects aligned with Bangladesh Bank green categories
-
Alignment with World Bank, IFC, ADB, UN, and DFI safeguard frameworks
-
Carbon, climate, and ESG integration into financial models and proposals
-
End-to-end support from concept to lender and regulator engagement
Our advisory ensures that climate ambition is translated into bankable, compliant, and fundable projects.
DKS Capital Advisory
Advising Climate-Smart Capital for a Resilient Bangladesh
Talk to An Expert Our expert advisor will contact you promptly to assist with your inquiry.
Get in touch
Dr. Mrinal Kanti Saha, FIEB, PEng, NEBOSH IGC
+8801701763536
