Dhaka: Bangladesh Bank governor Atiur Rahman on Sunday suggested the government create a “green fund” from the profits of the state-owned BPC’s fuel business.

He said this green fund should be created in order to promote renewable energy across the country.

He made the suggestion while addressing the launching ceremony of “Green Banking for Energy Sustainable Economy,” a project funded by German donor agency GIZ, at Bangladesh Institute of Bank Management (BIBM) in the city.

Bangladesh Petroleum Corporation (BPC) has been making a hefty profit from its petroleum fuel marketing business following the drastic fall in the fuel price on the global market. BPC earned more than Tk 5000 crore in last one year from its business.

BIBM, GIZ and Sustainable and Renewable Energy Development Authority (SREDA) organized the function to find out an easy and affordable solution to renewable energy financing in Bangladesh.

The governor said the central bank has recently introduced afresh US$ 200 million green fund for apparel and leather industries.

The funding has come in addition to its Tk 2.0 billion revolving fund introduced in 2010 and ADB-supported refinance scheme of Tk 50 million for improving the efficiency of brick kilns.

German Ambassador Thomas Prinz, Sreda chairman Anwarul Islam Sikder, BIBM director general Professor Toufic Ahmad Choudhury, and Professor Ahsan Habib also spoke on the occasion.

The central bank governor said that the newly launched $200 million fund will be disbursed for “low-cost and for long-term foreign currency projects”. In addition, he said, BB has opted for energy efficient options like refinancing green energy, apparels, water concealing in apparel industries.

Atiur said sustainable energy is crucial for sustainable development, a process that ensures development of the current generation without impeding the development opportunities for the future generation.

He mentioned that the government has prepared a Renewable Energy Policy and has undertaken various action plans with the target of generating 5 percent and 10 percent of total power production by 2015 and 2020 respectively.

Renewable energy has also received special attention of the central bank since 2010, he said adding that Bangladesh Bank has introduced 50 green products under 11 categories to be eligible for refinancing facilities available at the central bank.