Dhaka:A Green Transition Working Group (GTWG) has been established in Bangladesh to facilitate the expansion of access to green and sustainable financing for small and medium enterprises (SMEs). This initiative is aimed at accelerating the transition of SMEs towards environmentally sustainable business practices.
According to Bangladesh Sangbad Sangstha, the Business Initiative Leading Development (BUILD), in collaboration with the United Nations Capital Development Fund (UNCDF), launched this initiative through an inception workshop held in Dhaka. The workshop was part of the Access to Green Finance (A2GF) for Enterprises Programme.
Mohammad Navid Safiullah, additional secretary to the Ministry of Environment, Forest and Climate Change and chair of the GTWG, highlighted six critical issues for accelerating the green transition during the workshop. These include efficient resource use, green financing, technology transfer and skill development, market expansion, climate resilience, and improved coordination and accountability.
Mohammad Muslim Chowdhury, former finance secretary and former chairman of Sonali Bank PLC, emphasized the need for Bangladesh to identify new sources of competitiveness beyond its traditional labor-cost advantage. He advocated for better coordination and collaboration among institutions and stakeholders to make green transition initiatives practical and effective.
Ferdaus Ara Begum, CEO of BUILD, noted the significant barriers faced by cottage, micro, and small enterprises in accessing formal financing. She identified finance and incentives, ESG standards, technology and circularity, and policy and regulatory reform as priority areas for the working group.
Md. Mahbubur Rahman of Bangladesh Bank highlighted the central bank's financing schemes for SMEs and its support for innovative entrepreneurship, particularly in rural areas. Sadat Mainuddin of UNCDF mentioned that the A2GF programme was already providing green loans at single-digit interest rates.
Dr. Wasel Bin Shadat of BUILD presented an evidence-based analysis identifying the major barriers to the green transition of SMEs, including limited access to green finance and inadequate ESG reporting capacity. He proposed a 12-month roadmap to translate the initiative into practical outcomes.
The workshop concluded with discussions on governance structures, pilot initiatives, and priority activities for 2026-27, aiming to accelerate the green transition of SMEs in Bangladesh.