The Asian Development Bank (ADB) and the government of Bangladesh have officially signed a policy-based loan agreement amounting to US$400 million. This financial support is directed towards assisting Bangladesh in the implementation of its National Adaptation Plan for the period 2023-2050. Additionally, the loan aims to facilitate the achievement of Bangladesh’s Nationally Determined Contributions 2021 Update to the Paris Agreement, focusing on fostering climate-resilient and inclusive development.
Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Edimon Ginting, ADB’s Country Director, signed the agreement on behalf of Bangladesh and ADB, respectively. The signing ceremony took place at the ERD in the capital.
This funding marks the initial phase of the broader $700 million Climate-Resilient Inclusive Development Program. Bangladesh, identified as one of the world’s most vulnerable nations to the adverse effects of climate change, experiences an annual average loss of around US$3 billion, as stated in a press release.
Edimon Ginting, ADB Country Director, emphasized the institution’s commitment to supporting Bangladesh in strengthening its climate resilience, transitioning to a low-carbon economy, mitigating greenhouse gas emissions, and integrating gender equality and social inclusion in climate actions.
The program’s objectives include creating a conducive institutional and policy environment to mobilize climate finance, prioritizing climate actions in the national development agenda, and facilitating government-led reforms in critical climate sectors such as agriculture, disaster management, transport and infrastructure, urban development, and energy.
Part of the initiative involves establishing the National Committee for Environment and Climate Change, headed by the Prime Minister, to holistically implement the government’s climate priorities across ministries. The program is set to actively support the operationalization of the Bangladesh Climate and Development Partnership, introduced at COP 28.
Furthermore, the program focuses on mainstreaming climate priorities in government planning and resource allocation, as well as mobilizing climate finance through instruments like green bonds and sustainable finance policies.
At the sectoral level, the program promotes climate-smart and resilient agricultural practices, particularly those beneficial for female farmers. It also supports the adaptation of solar irrigation pumps, the implementation of climate-resilient infrastructure design and planning, and the development of a regulatory framework for the adoption of electric vehicles, including the introduction of electric buses in public transport fleets.
In line with ADB’s increased climate financing ambition, announced in October 2021 to deliver $100 billion from 2019 to 2030, this program seeks to expand access to climate-focused technologies and mobilize private capital for climate finance.
