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Accelerating Green Transitions: Swisscontact’s InSPIRE Project's Challenge Fund set to launch for the RMG Sector

Bangladesh
Green cities, Entrepreneurial ecosystems, Trade
Sayedul Arefin, InSPIRE, Bangladesh19.05.2025
Swisscontact Bangladesh, with support from the Embassy of Sweden, is set to launch the InSPIRE Challenge Fund by the end of May 2025—an initiative designed to accelerate the green transition of Bangladesh’s Ready-Made Garment (RMG) sector. The fund was introduced during an industry consultation workshop on 19 May in Dhaka, which convened key stakeholders from the RMG and renewable energy sectors. The event served as a strategic platform to align priorities, strengthen co-financing models, and address barriers to private sector investment in clean energy.

Co-hosted by Swisscontact and the Embassy of Sweden, the consultation engaged representatives from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), global brands including H&M, Inditex, and Marks & Spencer, as well as financial institutions and Energy Service Companies (ESCOs). The event emphasized how InSPIRE’s performance-based grants—covering up to 40% of eligible project costs—can help de-risk investments, with the remainder financed by applicants.

Franziska Koller, Director Products & Solutions at Swisscontact HQ, also attended the consultation, underscoring the organization’s global commitment to market-driven climate solutions and scalable green financing models.

"Bangladesh’s RMG sector is central to its economy. Supporting its green transition will yield substantial environmental and economic benefits. InSPIRE is designed to catalyze scalable, low-carbon solutions by crowding in private investment."
Maria Stridsman, Deputy Head of Mission, Embassy of Sweden

The session featured opening remarks by Helal Hussain, Country Director of Swisscontact Bangladesh, followed by a technical presentation from the InSPIRE team. Bidowra Tahmin Khan, Team Leader of InSPIRE, detailed the fund’s structure, eligibility criteria, and timelines. The first call for concept notes will open by the end of May, targeting projects in enhancing energy efficient measures in the RMG periphery.

Helal Hussain, Country Director of Swisscontact, addressing the audience with a welcome note.

Interactive sessions allowed participants to explore financing models, technical viability, and collaboration opportunities. Global brands outlined supplier engagement strategies for energy efficiency, while ESCOs and financial institutions emphasized the importance of integrated investment frameworks.

"Sustainability must be positioned as a strategic advantage. InSPIRE aims to unlock capital—particularly for mid and low-tier factories and ESCOs—by bridging financing gaps."
Syeda Ishrat Fatema, Deputy Country Director, Swisscontact

The InSPIRE – Initiative to Stimulate Private Investment for Resource Efficiency is a flagship challenge fund under Swisscontact’s green growth portfolio, supported by the Embassy of Sweden. Designed to promote renewable energy and energy efficiency in the RMG sector, the fund aims to contribute to Bangladesh’s goal of sourcing 40% of electricity from renewables by 2041. By leveraging private capital and supporting scalable innovations, InSPIRE is poised to enhance the competitiveness, resilience, and sustainability of Bangladesh’s leading export sector.

The InSPIRE Challenge Fund will offer performance-based grants to selected RMG factories and ESCOs through a competitive solicitation process, requiring private investment to cover a minimum of 60% of the project cost.

The consultation underscored the importance of policy alignment, robust partnerships, and inclusive financing to drive sector-wide transformation. Proposals under InSPIRE are expected to demonstrate measurable environmental impact, gender inclusivity, and a clear strategy for avoiding double funding.

"We actively support our suppliers through energy audits and co-investment mechanisms to achieve decarbonization targets."
Representative, H&M

The consultation underscored the importance of policy alignment, robust partnerships, and inclusive financing to drive sector-wide transformation. Proposals under InSPIRE are expected to demonstrate measurable environmental impact, gender inclusivity, and a clear strategy for avoiding double funding.

Bidowra Tahmin Khan, Team Leader of the InSPIRE project, delivering a presentation on the operational modalities of the Challenge Fund.

Links to the national coverage:

  1. The Business Standard:  https://www.tbsnews.net/economy/rmg/swisscontact-launch-inspire-challenge-fund-boost-green-energy-transition-rmg-sector
  2. The Daily Star:  https://www.thedailystar.net/business/economy/rmg/news/swisscontact-swedish-embassy-launch-green-energy-fund-rmg-sector-3898371
  3. Financial Express: https://thefinancialexpress.com.bd/trade/push-for-more-renewable-energy-use-in-rmg-sector
  4. Dhaka Tribune:  https://www.dhakatribune.com/business/381707/swisscontact%E2%80%99s-%E2%80%98inspire%E2%80%99-fund-to-boost-green
  5. Times of Bangladesh: https://tob.news/swisscontact-to-launch-inspire-challenge-fund-to-boost-green-energy-transition-in-rmg-sector/
  6. Channel i Online: https://www.channelionline.com/swisscontact-fund-to-support-ready-made-garment-industry/
  7. Apparel Resources: Swisscontact Bangladesh to launch 'InSPIRE' challenge fund to accelerate green energy transition in RMG sector | Sustainability News Bangladesh

 

For any query about InSPIRE Challenge Fund, please email to: [email protected]

2025 - 2028
Bangladesh
Green cities, Entrepreneurial ecosystems, Trade
Initiative to Stimulate Private Investment for Resource Efficiency (InSPIRE)
The InSPIRE project empowers small and medium RMG factories in Bangladesh to adopt renewable energy and energy-efficient solutions for sustainable, competitive, and inclusive sector that secures decent jobs and fosters gender equity advance compliance with global ESG (Environment, Social and Governance) standards. 
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