The Infrastructure Development Company Ltd (Idcol) today signed an agreement with Green Climate Fund (GCF) to receive $256.5 million to promote private sector investment through large-scale adoption of energy-efficient technologies in the textile and garment sector.

The signing ceremony was held virtually in the presence of Sharifa Khan, secretary of the Economic Relations Division and chairman of Idcol, and Yannick Glemarec, executive director of the GCF, the Idcol said in a statement.  

The Idcol as the direct access entity (DAE) of the GCF signed the funded activity agreement (FAA) with GCF to receive the fund.

This is the first concessional GCF credit line for Bangladesh and the first private sector financing of GCF in the country.

This fund will catalyse climate finance in low-emission and climate-resilient development of the industrial sector, according to the press release.

Sharifa Khan emphasised strengthening the relationship between GCF and Bangladesh to achieve the country's ambitious agenda to support green, clean and resilient development.

Alamgir Morshed, executive director and CEO at Idcol, expressed his hope and optimism in enhancing access to climate finance for the country. 

Set up in 1997, Idcol is a government-owned non-bank financial institution working to catalyse private sector investment in the areas such as renewable energy and infrastructure.