BSEC, UNDP collaborate to develop SDG Finance Taxonomy for Bangladesh

The Bangladesh Securities and Exchange Commission (BSEC) and the United Nations Development Programme (UNDP) recently held a series of consultations to develop an SDG Finance Taxonomy for Bangladesh. 

This initiative aims to channel private sector investment towards achieving the Sustainable Development Goals (SDGs), the UNDP said in a press release. 

Initially piloted in China, the SDG Finance Taxonomy is being adapted to suit Bangladesh's local legal and economic environment while maintaining global standards.

The consultations engaged a wide range of stakeholders, including issuers, investors, and representatives from sectors such as finance, infrastructure, education, health, and food security. 

The discussions focused on ensuring the taxonomy's relevance and usability for Bangladesh. Participants emphasised the importance of aligning it with national policies, raising awareness of its benefits, and ensuring it meets international standards for cross-border investments.

Key recommendations from the discussions included aligning the SDG Finance Taxonomy with Bangladesh Bank's Green Taxonomy to avoid confusion. Participants emphasised focusing on rural communities, climate migration, and eco-friendly materials in infrastructure and housing. 

In education and healthcare, the need for inclusive infrastructure and global best practices was highlighted. Additionally, they stressed the importance of capacity building, offering incentives, and establishing strong impact measurement and certification systems, with attention to gender inclusion and financial accessibility.

In a closing session, BSEC Commissioner Shaikh Shamsuddin Ahmed and UNDP Resident Representative Stefan Liller reviewed the feedback and outlined the next steps.

Shaikh Shamsuddin Ahmed said, "Bangladesh is committed to achieving the SDGs, with strong leadership driving the progress. In order to accelerate that, we aim to adopt the SDG finance taxonomy framework that will facilitate mobilising both domestic and international finance."

Stefan Liller, in his remarks, said, "We're seeing growing private sector interest in sustainable finance, particularly around innovative instruments like green bonds and blue bonds. There has been remarkable progress in that area over the last few years. By setting strong policy frameworks and ensuring effective implementation, Bangladesh can lead the way in unlocking further sustainable investments."

The next steps involve refining the taxonomy, aligning it with national green finance policies, and organising a final consultation round. After the updates, the taxonomy will be launched with technical guidance to support private sector investment in sustainable development in Bangladesh.