We are aware that global warming is an issue that calls for a global response. The rapid change in climate will be too great to allow many eco-systems to suitably adapt, since the change have direct impact on biodiversity, agriculture, forestry, dry land, water resources and human health. Due to unusual weather pattern, rising greenhouse gas, declining air quality etc. society demands that business also take responsibility in safeguarding the planet. Green finance as a part of Green Banking makes great contribution to the transition to resource-efficient and low carbon industries i.e. green industry and green economy in general. Green banking is a component of the global initiative by a group of stakeholders to save environment. The state of environment in Bangladesh is rapidly deteriorating. The key areas of environmental degradation cover air pollution, water pollution and scarcity, encroachment of rivers, improper disposal of industrial, medical and house-hold wastes, deforestation and loss of open space and loss of biodiversity. In addition, Bangladesh is one of the most climate change vulnerable countries. In line with global development and response to the environmental degradation, financial sector in Bangladesh should play important role as one of the key stakeholders.
Green Banking is a very sensitive and important issue introduced by Bangladesh Bank in the recent past. RAKUB, as a specialized state-owned bank, has been following the instructions of Bangladesh Bank relative to green banking. The Green Banking Guidelines of the bank are as follows:
In House Green Banking Management of RAKUB Head Office & Field Offices is as follows:
1.0 Managing Director of RAKUB has signed a participation agreement with Bangladesh Bank under a refinance scheme of Tk. 2000.00 million (200.00 crore). Under this program RAKUB has been financing on 44 products like renewable energy plants, efficient energy/ energy saving technology related plants, effluent treatment plant-solid and liquid, alternative energy plants, non fire block brick manufacturing projects, recycling plants, Vermicompost production, Hybrid Hoffman Kiln (HHK)/Tunnel/Kiln/Equivalent Brick Kiln etc.
Environmental Risk Management should be considered before financing the project/business. The following points should be considered
Crop Credit: Use of bio-fertilizer, irrigation by surface water, minimization of use of chemical fertilizer & harmful insecticide and controlling the use of carbide, formalin & preservatives.
Dairy farm: Avoiding harmful hormone in beef fattening. Appropriate doses of Vaccines are given timely. Animals are feeding on straw & green grass.
Fish Farm: Avoiding Piranha and African Cat-fish (Magur) cultivation. Prohibiting formalin treatment to preserve fish.
Industry based agriculture: The industries emitting black smoke, ash, wastage etc that pollute nature should be avoided. Smoke and wastage treatment plants should be in place.
Renewable & alternative fuel: Biogas, Solar Panel, Battery power, Hydro power, Windmill, energy saving instruments have to be used.
Fertilizer-pesticide: Production and marketing of Bio-fertilizer, Compost fertilizer.