Electric Vehicle in Bangladesh

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Financial Institutions and Businesses Join UK PACT Supported Initiative Road to a Green Bangladesh

Two new platforms, a financial institutions working group comprising banks, non-banking financial institutions and fintech firms, and a business engagement group comprising corporates, have been established as part of an initiative funded by the UK Partnering for Accelerated Climate Transitions (UK PACT) Programme to support green growth by increasing the use of electric vehicles for businesses in Bangladesh.

Ricardo, an international energy and environment consultancy, is leading the initiative with Bangladeshi partners, to support organisations in developing business cases, finance models and making funding applications.

To help the project’s objectives, the Financial Institutions Working Group (FIWG) and the UK-Bangladesh Business Engagement Forum (BEF) have been established at the launch event held on the 16th September.

The FIWG comprises banks and financial institutions acting as broader supporters of the Road to a Green Bangladesh project. The working group will facilitate the designing of financing models and advising on the full spectrum of financial services that could be leveraged into the project.

The BEF will serve as a platform for the engagement between businesses and financial institutions. The forum will seek to encourage dialogue by sharing outputs of the project on the potential and viability of electrified transport solutions, suitable financing options and mechanisms for e-mobility, and demonstrate long-term sustainability that would be key to the businesses.

Dr. Atiur Rahman, former governor of Bangladesh Bank who attended the event as Guest of Honor highlighted the importance of financial institutions and the role of central banks in the fight against climate change. General Manager of Bangladesh Bank Sustainable Finance Department, Khondkar Morshed Millat, who was a special guest at the session, shared the central bank’s strategy and initiatives to support green growth programmes including Electric Vehicles. The session was moderated Dr. Masrur Reaz, Chairman of Policy Exchange Bangladesh

Project co-ordinator Mate Antosik, a principal consultant with Ricardo, said: “This is a major milestone for the project. Launching these two platforms is crucial in the engagement with key stakeholders – financial institutions and businesses – going forward.

“Many businesses in Bangladesh would like to make the switch to electric vehicles, but there are a number of barriers, including financing and knowledge of the products. These two groups will be able to work with them to help make it easier to access different transport options.”

Also in attendance were Doyin Adele-Shiyanbola, Second Secretary, Political, from the British High Commission in Dhaka, and senior officials from HSBC, Standard Chartered Bank, EBL, Brac Bank, IDCOL, DANA Fintech, Shohoz and Advanced Dynamics. Ricardo, with its consortium members IDCOL, Light Castle Partners, Policy Exchange Bangladesh and Hivos Energia, has received funding for the project from the UK Government Department for Business, Energy, and Industrial Strategy (BEIS) under its UK PACT (Partnering for Accelerated Climate Transitions) Green Recovery Challenge Fund (GRCF).