Print page

Access 2 Green Financing for Enterprises


Building on Switzerland’s experience with innovative access to finance avenues, this programme facilitates mobilising green finance for small and medium sized enterprises in Bangladesh. The focus is on enterprises that have a strong commitment to reducing their environmental footprint and to providing green products and services in order to address climate change and reduce environmental degradation. 

Country/region Topic Period Budget
Bangladesh
Employment & economic development
SME development
Financial policy
Business support & economic inclusion
01.01.2024 - 31.12.2035
 CHF  19’110’000
The project in brief
Background Bangladesh’s geographic composition, coupled with the high population density, enhances vulnerability to climate change, resulting in anticipated losses between 2% and 9% of annual GDP by the middle to end of the century. Small and medium sized enterprises, accounting for over 40% of employment, are greatly impacted by climate change. Due to limitations in size, they often face challenges when it comes to ‘greening’ their operations and lack confidence to invest in environmental friendly technology. The Central Bank has adopted a policy to increase lending for small and medium sized enterprises, with targeted green financing. However, access to financial services remain severely constrained due to perceived higher risks by the financial institutions, the weak outreach of banks, lack of appropriate lending structures and risk management strategies. Concrete polices and frameworks are in place but enforcement is weak. Also, despite the eligibility to avail many global funds for tackling climate change, Bangladesh struggles to tap into these resources, mainly due to the lack of proper instruments and channels for mobilisation. Hence creating awareness, developing capacity and mobilising stakeholders must happen in parallel to facilitating access to green finance to ensure sustainable impact. In summary, the issue is not only about availaibility of resources. The challenges lies with accessibility. 
Objectives The overall objective of the programme is to promote green financing and enhance the capacity of small and medium sized enterprises to develop and deliver low carbon and climate-resilient solutions and improve environmental performance that will ultimately increase resilience of communities, enterprises, and the overall small and medium sized enterprises support ecosystem in Bangladesh. 
Target groups

Direct beneficiaries:

  • 200 Small and Medium Sized Enterprises (approx. 20% women-led/women focused);
  • Financial Institutions; and 
  • Impact Investors. 

Indirect, but ultimate beneficiaries: 200’000 low income households beneficiaries will be served by these small and medium sized enterprises, including, but not limited to, clients and employees. 
Medium-term outcomes

Outcome 1: Small and medium sized enterprises, in particular, women-focused enterprises better cope with and contribute to the consequences of climate change mitigation, reduce environmental degradation and enhance their business skills, improving access to finance and technology while enabling growth.

Outcome 2: Financial institutions and impact investors are equipped to provide targeted green financing and pragmatic risk management for high-impact small and medium sized enterprises.

Outcome 3: Regulators and policymakers integrate climate resilience and environmental considerations into policies and associated processes, improve provisions  to incentivise green financing/investing and learn from global best practices in this regard.
Results

Expected results:   Output 1.1: Small and medium sized enterprises equipped with enhanced business and technical skills, including access to finance and technology, for sustainable growth. Output 1.2: Empowered women-focused enterprises contributing to green solutions. Output 2.1: Pragmatic risk management strategies and environmental, social and governance compliant instruments developed and adopted. Output 2.2: Green financing resources mobilised. Output 3.1: Policy makers and regulators have improved capacity and information to develop, supervise and enforce of policy reforms as per best practices, guidance and instruments required to facilitate small and medium sized enterprises access to green finance. Output 3.2: Policy makers and regulators engage with key stakeholders and the private sector to address market constraints and align objectives around enhancing green financing for small and medium sized enterprises. 


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Private sector
  • Foreign private sector North


Coordination with other projects and actors Synergies are envisaged with the Swiss supported Shafal, B-Briddhi, SECO’s Integrated Environmental, Social and Governance programmes and the EmPower II Project. 
Budget Current phase Swiss budget CHF    19’110’000 Swiss disbursement to date CHF    0 Total project since first phase Swiss budget CHF   126’178 Budget inclusive project partner CHF   25’300’000
  • Sector according to the OECD Developement Assistance Commitiee categorisation INDUSTRY
    BANKING AND FINANCIAL SERVICES
    BUSINESS & OTHER SERVICES
    Sub-Sector according to the OECD Developement Assistance Commitiee categorisation
    Small and medium-sized enterprises (SME) development
    Financial policy and administrative management
    Business support services and institutions
    Aid Type Project and programme contribution
    Project number

    7F11097

Start of page
Last update 08.11.2022