Swisscontact, Swedish Embassy to launch green energy fund for RMG sector

Swisscontact Bangladesh, supported by the Embassy of Sweden, is set to launch the first window of the InSPIRE Challenge Fund at the end of this month, aiming to accelerate the adoption of renewable energy efficiency in Bangladesh's Ready-Made Garment (RMG) sector, according to a press release.

The announcement came at a high-level workshop in Dhaka, attended by representatives of the Swedish Embassy, BGMEA, BKMEA, global brands, banks, and renewable energy firms. The initiative aims to de-risk private green energy investment by offering grants covering up to 40 percent of project costs, with factories co-financing the remaining 60 percent. The amount of the Challenge Fund grant varies by project, ranging from one to five lakh Swedish Krona (SEK).

The workshop began with a welcome address by Helal Hossain, country director of Swisscontact Bangladesh. The opening remarks were delivered by Ikramul H. Sohel, senior programme officer.

Maria Stridsman, deputy head of mission at the Swedish Embassy, emphasised the need for collective action.

"Bangladesh's RMG sector is the backbone of its economy, and its green transition will have far-reaching environmental and social impacts. Through InSPIRE, we aim to incentivise scalable solutions to reduce carbon emissions," she said.

The InSPIRE fund is a performance-based grant to bridge financing gaps for mid-low tier factories and energy service providers, said the press statement. Grants will be categorised into small (6–12 months) and medium (up to 24 months) funding windows to support both pilot projects and high-impact scalable solutions.

"We want factories to see that sustainability is not just a cost but a competitive advantage," said Syeda Ishrat Fatema, deputy country director of Swisscontact.

The first call for concept notes will open by the end of May, with a four-week submission period, said the statement. Projects must focus on areas such as solar energy, biomass-based technologies, energy-efficient machinery, or water conservation. They must also align with Bangladesh's national goal of sourcing 40 percent of its electricity from renewables by 2041.

Azmal Huda, InSPIRE's MRM Manager, noted that technically sound projects with gender-inclusive policies and no double funding will be prioritised.

Global brands showed strong support for the initiative. An H&M representative highlighted work with suppliers on audits and co-financing to cut emissions. Energy Service Companies emphasised the need for stronger ties with brands and banks for long-term green transitions.