BB Governor calls for green investment

BB Governor calls for green investment

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Bangladesh Bank Governor Dr Atiur Rahman on Tuesday laid emphasis on green investment as Bangladesh is now on countrywide large scale sprees of residential, commercial, and public utilities building construction, involving massive total outlays. “Energy efficient building would therefore be a high impact area for green investment to focus on in the developing countries including Bangladesh, besides the energy infrastructure,” he said. In planning scaling up of green investments in developing countries like Bangladesh, it would be unrealistic to aim at total substitution of traditional options with first-best green alternatives and such attempt will risk seriously impairing food security and energy security for the broad masses of population, he said. The BB governor made the remark at the 3GF (Global Green Growth Forum) Round Table on ‘Green Investment: A Roadmap to Scale up Investments’ in Copenhagen, Denmark, according to a message received here. Like traditional ones, Atiur said, the green options also bring up issues of concern like risks to bio-diversity from big hydro power projects, pollution hazards from storage batteries in off grid solar power usage and so forth. “A well chosen mix of the traditional and the new green options, consistent with a country’s immediate needs and future growth aspirations, will need to co-exist; with utmost attention to maintaining optimal energy efficiency and emission minimization in each of these,” he said. Over the medium and longer term the innovation and growth spaces opened up by the new green options will help hasten fuller phase-out of the traditional options, Atiur said. He said for low income developing economies like Bangladesh, road map for green investment will need charting of both the buildup phase by awareness creation, motivation and support measures. The central bank chief also said available tariff waivers and tax breaks often do not fully cover the cost disadvantages in the green alternatives, particularly where subsidies exist on the traditional options, as in fossil fuels. Bangladesh Bank has opted to come forward with support in the initial build up phase of green investments, by awareness raising about urgency of green investments and facilitating financing access for these, he added. – UNB

 

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