The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with Meghna Re-Rolling & Steel Mills Limited (MRSL), a sister concern of Meghna Group of Industries (MGI) to establish Bangladesh’s first climate-smart steel plant.

This state-of-the-art facility will produce 1.5 million metric tons of steel annually—which represents around 20% of Bangladesh’s current annual demand—using 100% recycled scrap, supporting the country’s economic growth while tackling climate challenges, according to a press release on Monday.

Supported by a financing package of $100 million, this transformative project is set to deliver significant economic, environmental, and social benefits, said the release.

By leveraging advanced technology, it will reduce carbon emissions compared to traditional steel production, while creating over 20,000 direct and indirect jobs across the value chain, driving growth and sustainability.

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IFC’s Country Manager for Bangladesh, Bhutan and Nepal Martin Holtmann said that Bangladesh’s steel industry is critical for building infrastructure that drives sustainable growth.

“This project represents a major leap forward, not only in climate-smart manufacturing but also in job creation and industrial advancement. We are excited to contribute to the transformation of Bangladesh’s industrial landscape, supporting the nation’s journey towards a greener, more resilient future.”

This project marks a major milestone for Bangladesh’s steel industry, aligning with the Paris Agreement and meeting the criteria for 100% climate finance under global climate tracking principles.

Additionally, IFC and MRSL are collaborating to develop a comprehensive decarbonization roadmap, setting a new benchmark for sustainability in the country’s industrial sector.

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The Chairman and Managing Director of MGI Mostafa Kamal said this investment not only strengthens their capacity to produce high-quality, climate-smart steel but also represents a significant milestone for country’s economic and industrial growth.

The investment also aligns with the World Bank Group’s vision for Green, Resilient, and Inclusive Development (GRID), promoting climate-smart infrastructure, economic diversification, and industrial competitiveness.