Japan renews subsidy promise for environ friendly industries

Japan will continue to subsidise new industrial projects built with energy efficient and environment friendly technologies provided by the country, representatives of Institute for Global Environment Strategies (IGES), Japan, said yesterday.

IGES and Department of environment (DoE) jointly organised the daylong event titled "Capacity Building Workshop on Joint Crediting Mechanism" held in the capital's Bangabandhu International Conference Centre.

"The factories will be subsidised up to 50 percent of the total cost for emitting less carbon," said Kazuhisa Koakutsu, a representative of IGES, a research organisation, which promotes Japan's strategies in environment issues.

The subsidisation will take place under a Memorandum of Understanding (MoU), signed by the two governments back in February 2013.

The current subsidised projects, which are under process, are installation of energy efficient air jet looms at textile industries of Mahim Group, energy efficient solar-diesel hybrid system at YKK Bangladesh, 50 Megawatt solar photovoltaic (PV) power plant at IFDC Solar Power Bangladesh Ltd and a biogas power generation project at JB Bio Gas, Bangladesh, said Mirza Shawkat Ali, director (climate change and international convention) DoE, and added that Japan has already subsidised a project for establishing energy efficient centrifugal chillers at a sugar mill in the country.

The first projects will get 50 percent subsidy, the second 40 percent and the subsequent projects will get 30 percent subsidy, Kazuhisa said.

"Through this provision, Bangladeshi companies can bring world's leading low carbon advanced Japanese technologies, products and systems to Bangladesh," said Dr Kamal Uddin Ahmad, secretary of ministry of environment and forests.