Need for accessible green financing for SMEs emphasised

In light of Bangladesh's climate vulnerabilities, experts emphasised the urgent need for accessible green financing for small and medium enterprises (SMEs) at a discussion programme today (13 November).

The event titled "Access to Green Financing for Enterprises in Bangladesh," was organised by Truvalu, One to Watch, and the United Nations Capital Development Fund (UNCDF), with support from the Embassy of Switzerland in Bangladesh.

Speakers at the event called for stronger connections between SMEs and financial institutions to simplify green finance access, making it feasible for SMEs to adopt climate-friendly solutions.

Photo: TBS

The forum brought together representatives from SMEs, financial institutions, investment firms, development partners, policymakers, and regulators to explore opportunities for financing SMEs to adopt green initiatives and climate-friendly technologies. 

The discussions highlighted policy innovations and strategic partnerships essential for unlocking green financing to drive sustainable growth.

Key speakers included Machteld Ooijens, director of Truvalu; Maria Perdomo, regional coordinator for Asia and the Pacific at UNCDF; Nurun Nahar, deputy governor of Bangladesh Bank; and Corinne Henchoz Pignani, deputy head of mission and head of cooperation at the Embassy of Switzerland in Bangladesh.

Emphasising the importance of a collaborative approach involving the government, private sector, SMEs, local and foreign investors, financial institutions, and development organisations, Machteld Ooijens said that blending public, private, and philanthropic capital can incentivise climate-smart solutions and that de-risking investments can make private investments more attractive.

Maria Perdomo spoke about UNCDF's role in this project, which is to work closely with Bangladesh Bank and other government partners to create an enabling environment that de-risks investments supporting a green transformation of SMEs. 

She said, "I invite you all to join our partners—the Embassy of Switzerland in Bangladesh, Truvalu, and One to Watch—on this journey to further mobilise additional capital and attract private sector investments for a greener Bangladesh."

Sharawwat Islam, managing director of Truvalu Bangladesh, discussed the programme's context, key learnings from its first year, and the resulting impact.

Sadat Mainuddin, country project manager at UNCDF, said, "The challenges posed by climate change are immense, but so, too, are the opportunities for sustainable growth and development. By working together, we can build a more resilient and prosperous future for Bangladesh. Let us harness the power of green finance to drive innovation, create jobs, and protect our planet."

Nurun Nahar, deputy governor of Bangladesh Bank, said, "This partnership represents a promising path forward, uniting resources, expertise, and a shared commitment to sustainability. We look forward to continuing this journey together, with Bangladesh Bank as a committed policy stakeholder in fostering a sustainable and resilient Bangladesh for generations to come and achieving the SDGs by 2030."

Corinne Henchoz Pignani, deputy head of mission and head of cooperation at the Embassy of Switzerland in Bangladesh, said that private sector involvement in climate adaptation and mitigation in Bangladesh is still emerging. However, she emphasised that this engagement has the potential to stimulate greater investment in climate-resilient technologies and services across key sectors.