Bangladesh Begins Work on First National Climate Finance Plan

Photo : Collected

Bangladesh has taken an important step toward strengthening its climate resilience with the launch of a national consultation process to develop the country’s first National Climate Finance Strategy.

The Finance Division of the Ministry of Finance, in partnership with the United Nations Development Programme (UNDP), held a high-level workshop in Dhaka to gather perspectives from private sector representatives, financial regulators, government agencies, and development partners on mobilising private finance for climate action.

The initiative comes at a critical moment for climate-vulnerable nations. At COP30, global leaders warned that adaptation financing remains dangerously inadequate despite rising threats from sea-level rise, extreme heat, and climate-related disasters.

Although Bangladesh contributes less than 0.56% of global emissions, it ranks ninth among the world’s most climate-exposed countries, facing annual financing needs estimated at US$26 billion, according to a UNDP release.

The National Climate Finance Strategy, developed under UNDP’s Inclusive Budgeting and Financing for Climate Resilience (IBFCR II) project, aims to close this gap by aligning public financial management reforms, regulatory incentives, and private investment to mobilise climate finance at scale.

AKM Sohel, Additional Secretary and UN Wing Chief of the Economic Relations Division, said Bangladesh remains “severely underfunded” in climate finance despite its vulnerability. A clear strategy, he noted, will help the country develop bankable projects and strengthen its ability to secure long-term financing.

Dr Ainun Nishat, Professor Emeritus at BRAC University, emphasised that effective climate action requires full implementation of the National Adaptation Plan, alongside capacity building and technology transfer. Integrating climate considerations across all ministries, he said, is essential.

Md Rafiqul Islam, Executive Director of Bangladesh Bank, highlighted that as Bangladesh moves toward a low-carbon development path, sustainable and climate finance will be crucial.

Owais Parry, Country Economic Advisor at UNDP, noted that although Bangladesh already invests billions in climate action, the financing gap remains significant. A national strategy, he said, will help the country attract new sources of capital, align policies, and secure the funds necessary for a resilient, inclusive future.

Dr Maliha Muzammil of UNDP Bangladesh delivered a keynote presentation on the need for a national strategy, followed by a technical session with UNDP experts. Participants discussed challenges in accessing public and private climate finance, including blended finance, green bonds, sustainability-linked loans, insurance solutions, and public-private partnerships.

This event marks the first of three consultation workshops. Upcoming sessions will engage key ministries and government agencies, followed by development partners and development finance institutions. The inputs will be consolidated into a draft Climate Finance Strategy for broader national consultation.

The strategy is expected to help Bangladesh secure larger, more predictable, and diverse climate financing—bridging global commitments made at COP30 with national efforts to protect people, livelihoods, and ecosystems.