The World Bank: Central Bank of Bangladesh Announces $500 Million Green Fund for Textile Sector

The World Bank Group is supporting the Partnership for Cleaner Textile (PaCT project) in Bangladesh. IFC is taking a lead role in structuring the green fund.

  • The central bank of Bangladesh announced $500 million of low-cost green fund for the textile sector.
  • The fund’s timing is critical as the global demand for environmental-friendly goods continues to rise.

Bangladesh has the world’s second largest textile industry. Yet washing, dyeing, and finishing (WDF) factories are the second biggest polluter in the country, consuming an annual 1,500 billion liters of groundwater and relying on inadequate wastewater treatment. Many mills use 250 to 300 liters of water per kilogram of fabric, far beyond the global best practice of 50 liters per kilogram or less.

Following recommendations made at a seminar jointly organized by the World Bank Group’s Trade and Competitiveness Global Practice and the Policy Research Institute of Bangladesh (PRI), the Governor of Bangladesh Bank, Atiur Rahman, recently announced the central bank’s plans to earmark $500 million of low-cost “green fund” for textile factories. The seminar is a part of the Partnership for Cleaner Textile (PaCT) project, of which Water Footprint Network is an implementing partner.

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