Green banking practices to protect environment

Nizam Chowdhury

Environmental pollution, mostly caused by human activities, is severely affecting the economy and living standards in Bangladesh. The country’s existence is dependent on efficient management of the issue. 

According to research, the geographic location of Bangladesh makes it one of the most climate vulnerable regions of the world. Lack of awareness, environmental education, compliance and negligence on the part of businesses and mass people are also resulting in fast deterioration of the environment. This situation can only be improved through coordinated efforts from the government, private sector, and individuals. Moreover, banks and financial institutions are well positioned to act as catalysts to support and supplement these efforts. 

Bangladesh Bank (BB) is the forerunner in taking policy initiatives for green banking and sustainable development. It has also taken initiatives such as enhancing the capacity building of financial market players both commercial banks. Green Banking will help expanding infrastructure and upgrading technology to provide clean and more efficient energy in all countries will encourage growth and help the environment.

A general bank turns into a green bank by coordinating its core activities toward the improvement of environment. The idea of green banking was created in the western nations. It was formally began in 2003. 

There are two different ways of green financial practices. One is in-house green banking; another is practice by the brokers in their business region. Making perfect and sterile financial condition, green structure, reforestation, web based banking, squander the executives, establishment of solar panel on the housetop of the bank and utilizing high mileage vehicles, lessening sound contamination, utilizing webcam for video conferencing rather than physical gatherings, online explanations, messaging reports are incorporated into the in-house Green Banking. 

Financing the green tasks like Bio-gas Plant, Sunlight based/Sustainable power source Plant, Bio-compost Plant ,Effluent Treatment Plant (ETP), Ventures having ETP and so on, taking a shot at explicit green undertakings, deliberate exercises of banks are real practices by the brokers in their business region.

It was known that Bangladesh Bank has issued different circulars time to time regarding modernization of Green Banking practice and its proper implementation.