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Bangladesh Garment Sector Receives $500M to Improve Eco-Friendly Practices

The Central Bank of Bangladesh announced last week it has designated $500 million of low cost financing to help boost the country’s ready-made garment sector’s sustainable technologies and practices. The Daily Star reported that the funds are in addition to existing export development fund (EDF) comprise of $1.5 billion.

Called the Green Export Development Fund, the program aims to solve the environmental challenges facing Bangladesh’s apparel industry, including wasteful water usage in its textile dyeing and finishing processes, and toxic discharges into surface and ground water.

During a discussion at the office of Policy Research Institute of Bangladesh in Dhaka, the Central Bank of Bangladesh governor Atiur Rahman suggested that the development fund be incorporated into the country’s five-year plan, and noted that the eco-friendly investments are necessary for Bangladesh to reach its $50 billion export target by 2021.

The Daily Star reported Rahman stressed, “Long-term sustainability of the industry greatly lies in its ability to produce green textile products mainly due to growing consumer demand for eco-friendly products.”