The InSPIRE Challenge Fund’s first phase will be launched by Swisscontact Bangladesh with assistance from the Swedish Embassy. The fund’s goal is to encourage energy efficiency and renewable energy in Bangladesh’s ready-made garment (RMG) sector. Key stakeholders including representatives from the Swedish Embassy, BGMEA, BKMEA, international brands like H&M, Inditex, and Marks & Spencer, financial institutions, and renewable energy companies made the announcement at a high-level industry consultation workshop on Monday at a prestigious hotel in Dhaka.
By offering grants that cover up to 40% of the expenditures, the program aims to reduce the risks associated with investments in green energy projects. Participating enterprises are expected to co-finance the remaining 60%. Depending on the size of the project, grant amounts will range from one to five lakh Swedish Krona (SEK).
Helal Hossain, the country director of Swisscontact Bangladesh, and Ikramul H. Sohel, the Senior Programme Officer at the Swedish Embassy, gave the introductory remarks for the session. The Swedish Embassy’s Deputy Head of Mission, Maria Stridsman, stressed the need of teamwork in Bangladesh’s green transition.
The goal of the InSPIRE fund is to help mid- and low-tier factories and energy service providers fill financial gaps. It is a performance-based award, not a loan. The awards, which are divided into small (6–12 months) and medium (up to 24 months) funding windows, will support both pilot initiatives and scalable, high-impact solutions, according to Syeda Ishrat Fatema, Deputy Country Director of Swisscontact.
By the end of May, the initial request for idea notes will open, with a four-week timeframe for submissions. In line with Bangladesh’s national objective of obtaining 40% of its electricity from renewable sources by 2041, eligible projects should concentrate on solar energy, biomass technologies, energy-efficient machinery, or water conservation. Projects that exhibit technical soundness, gender inclusivity, and no double funding will be given priority, according to Azmal Huda, MRM Manager of InSPIRE.
The program received tremendous support from international brands. An H&M spokesperson emphasised how they work with suppliers on energy audits and co-finance initiatives to improve efficiency and reduce emissions. Inditex urged factories to implement cleaner technology as part of its pledge to cut supply chain emissions by 2027. To guarantee the long-term viability of green energy projects in the RMG industry, Energy Service Companies (ESCOs) underlined the necessity of more robust collaborations with financial institutions and brands.
