Green Banking Status and Climate Change: Bangladesh Perspective

Abstract

The earth is the only planet in the universe for human habitats with an ecological harmony of nature. We must protect our planet at any cost for us and the coming generations. Bangladesh is an alarmingly vulnerable country to climate change due to its location and position. Among many more endeavors, green banking can be an example of ejecting low carbon dioxide, supplying green financing, gaining sustainable banking practices, and saving nature. The green banking paradigm is right now passing the growth level in Bangladesh. This research discusses the basic concepts of green banking moves, their current status, and their impact on climate change issues in Bangladesh. In this initiative, we used data from secondary sources, such as journal articles, annual reports of Bangladesh Bank (BB) and other scheduled banks, proceedings, and daily newspapers from 2021 to 2023. The collected dataset is analyzed using MS Excel software, considering its nature. This paper identifies the data regarding green finance, such as investment for ETP, green energy, biogas plants, solar home plants, HHK, green industry, green buildings, production of vermicomposting, and many more. This study also gathered quarterly published data by Bangladesh Bank and compared it with the target set by the controlling regime. This study showed that 23 commercial banks have reached the target of GF set by Bangladesh Bank as GF ≥ 5% of total term loan disbursement. State Bank of India achieved 99.52%, got first position and Pubali Bank PLC achieved 5.80%, got last place considering the target set. On the other hand, 15 commercial banks fulfilled their target of SF compared to total loan disbursement. In this case, the target attainment is SF ≥ 20% of total loan disbursement. Bangladesh Krishi Bank holds the highest position (57.22%) and Community Bank Bangladesh Ltd., (20.10%) got the lowest position. The BB, as a controlling body of all financial institutions, and other banks are on the right track. Almost all commercial banks fulfill their targets concerning green financing, contributing towards a healthy environment, and making the planet green. 

Key Words: GB=Green Banking, Climate Change, SDGs, GF=Green Financing, HHK=Hybrid Hoffman Kiln Bangladesh Bank, Carbon dioxide, SF=Sustainable Finance.

DOI: 10.7176/RJFA/15-5-02

Publication date: May 30th 2024