{ "title": "Bangladesh and its Partners are Launching the Bangladesh Climate and Development Platform to Leverage Adaptation and Mitigation Investments", "publication": "IMF News, December 3, 2023", "sourceUrl": "https://www.imf.org/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments", "canonical": "https://www.imf.org/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments", "overlayPath": "/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments/index.md", "summary": "Bangladesh and its Partners are Launching the Bangladesh Climate and Development Platform to Leverage Adaptation and Mitigation Investments", "publishDate": "2023-12-03", "sections": [ { "heading": "Partnership and purpose", "content": "- International financial institutions, bilateral donors, and private sector partners are collaborating with the Government of Bangladesh to establish the Bangladesh Climate and Development Platform (BCDP), a project preparation facility, and to mobilize financial commitments for public and private investments for adaptation and mitigation following the Resilience and Sustainability Facility (RSF) arrangement.\n- The collaboration aims to leverage additional private sector investment in the future and bolster Bangladesh’s efforts to address climate change impacts on vulnerable communities.\n- The initiative is described as the first partnership of its kind in Asia." }, { "heading": "Context and existing IMF/partner programs", "content": "- The $1.4 billion Resilience and Sustainability Facility (RSF) arrangement was approved by the IMF’s Executive Board in January 2023.\n- World Bank programmatic series of Green and Climate Resilient Development (GCRD) Policy Credits total $1 billion.\n- The ADB has ongoing funding for climate projects in Bangladesh, including processing a $400 million policy-based loan in 2023." }, { "heading": "Financial commitments and instruments (exact figures)", "content": "- RSF arrangement: $1.4 billion.\n- World Bank GCRD Policy Credits: $1 billion.\n- ADB 2023 project financing allocated towards climate financing so far: 53 percent of $1.9 billion.\n- ADB commitment for 2024-26 allocation for Bangladesh: $5.5 billion, with ADB committed to allocating more than half toward the GoB’s climate agenda.\n- Korean Government pledge: $50 million.\n- AIIB consideration at request of GoB: $400 million in 2024.\n- GCF public and private sector projects supporting Bangladesh: totaling over $400 million.\n- Bangladesh Renewable Energy Facility total: $430.5 million.\n - EU-guaranteed EIB Loan component: $381.5 million.\n - EU Grant component: $49 million.\n - Technical Assistance within the grant: $6.5 million.\n - Investment Grant within the grant: $42.5 million.\n- Renewable Energy Facility expected mobilization: up to $763 million in investments.\n- Renewable Energy Facility estimated contribution to capacity: an estimated 750 MWp of new renewable energy capacity.\n- AFD processing a ~$320 million climate policy-based loan program.\n- Private sector climate project financing breakdown:\n - GCF contributions: $441.2 million.\n - Other development partners, national implementing entities, and private banks: $135.5 million.\n - Government of Bangladesh: $33 million.\n - Aggregate approximate private-sector financing noted: ~$610 million.\n- JICA loan agreement with BRAC Bank in early 2023: $90 million.\n- World Bank decade commitment to climate change mitigation and adaptation financing in Bangladesh: $7.2 billion, representing 35 percent of total IDA commitments in Bangladesh across all sectors.\n- Outcome cited: resilience-building measures have helped build greater resilience for 6.3 million people living in vulnerable coastal regions." }, { "heading": "Reform agenda and policy measures supported", "content": "- RSF arrangement and GCRD credits support reforms to:\n - Strengthen resilience to climate change.\n - Advance decarbonization of the economy.\n - Manage transition risks.\n- Specific reforms include:\n - Integrate climate and green dimensions into public procurement and public planning.\n - Incentivize locally led climate actions.\n - Scale up a national disaster risk financing strategy.\n - Adopt a periodic formula-based price adjustment mechanism for petroleum products.\n - Tackle air pollution and GHG emissions.\n - Enhance the efficiency and resilience of water supply and sanitation services.\n - Bangladesh Bank to update the Policy on Green Bond Financing.\n- Expected outcomes of reforms and partner collaboration:\n - Integrate climate risks into fiscal planning.\n - Improve sensitivity of public investment management to climate-related challenges.\n - Bolster climate-related risk management for financial institutions (including climate stress testing).\n - Strengthen and institutionalize monitoring and reporting of climate-related spending.\n - Fortify disaster risk reduction and management." }, { "heading": "Institutional coordination and governance", "content": "- Ministry of Environment, Forest, and Climate Change (MoEFCC) formed the National Committee for Environment and Climate Change (NCECC) as an inter-ministerial platform headed by the Prime Minister.\n - NCECC responsibilities: monitor implementation progress of national climate strategies, provide guidance and solutions for implementation problems, and consider implementation of decisions from UN climate conferences." }, { "heading": "Project Preparation Facility (under BCDP)", "content": "- A multi-donor/multi-sector project preparation facility will be established within the BCDP to improve bankability of priority projects and support scalability to attract private investments.\n- The facility aims to mainstream projects in development plans while reducing the financial burden on the public sector.\n- The ADB and the World Bank are preparing the facility, enhancing coordination with other development partners." }, { "heading": "Sectoral and programmatic support", "content": "- World Bank:\n - $1 billion GCRD Policy Credit series to support transition to green and climate-resilient development.\n - Support for alignment with Article 6 of the Paris Agreement and preparation of the first Article 6 carbon market transaction.\n - Engagement in air quality management and financing pollution abatement in energy and industry sectors (which can generate carbon credits).\n- JICA:\n - Support BCDP through technical assistance, concessional loans, and grants.\n - Adaptation priorities: flood control, river management, water supply, sanitation, fishery and food security.\n - Mitigation priorities: renewables, energy-saving technology per the Integrated Energy and Power Master Plan, low-carbon urban transportation, forest and natural resources management.\n- UNDP:\n - Technical assistance on climate change-sensitive planning and budgeting, strengthened climate public finance governance, and local-level climate finance planning and budgeting.\n - Technical support to the Bangladesh Securities and Exchange Commission on a Sustainable Development Goals Thematic Bond Framework, taxonomy upgrades, and impact management and reporting framework.\n- GCF:\n - Supporting several public and private sector projects totaling over $400 million across energy, agriculture, water management, and resilient livelihoods; several multi-country programs including Bangladesh are in GCF’s pipeline.\n- EIB/EU (Team Europe):\n - Bangladesh Renewable Energy Facility (see financial figures above) under EU Global Gateway strategy." }, { "heading": "Private sector mobilization and instruments", "content": "- IFC:\n - Will deploy own funds and crowd in other investors; explore a platform approach for financing mitigation and adaptation with innovative structures for risk sharing, currency hedging, and performance-based incentives.\n- MIGA:\n - Will provide investment guarantees to mobilize foreign direct investment, especially in renewable energy, and help reduce cost of climate finance.\n- Standard Chartered Bank (SCB):\n - Has introduced local green bond and first sustainable letter of credit in Bangladesh.\n - Asserts that $1 invested in adaptation can yield up to $10 of economic benefits.\n - Leading provider of blended finance solutions; supports blended finance platforms across Asia." }, { "heading": "Technical assistance, access to climate finance, and capacity building", "content": "- UK Taskforce on Access to Climate Finance:\n - Will support improved coordination of bilateral climate finance and assist Government of Bangladesh to increase access to all sources of climate finance via a country-owned programmatic approach.\n- UNDP:\n - Continued technical assistance for strategic climate change-sensitive planning and budgeting, climate public finance governance, and local-level climate finance planning.\n- JICA:\n - Technical assistance and financing to enhance project pipelines and align investments with Bangladesh’s climate agenda." }, { "heading": "Expected impacts and scaling", "content": "- The Renewable Energy Facility is expected to mobilize up to $763 million and contribute an estimated 750 MWp of new renewable energy capacity.\n- The AFD and Team Europe commitments aim to continue allocating a significant share of their Bangladesh financing to climate change (AFD: since 2015, more than 75 percent of AFD project financing provided to Bangladesh—over $1 billion—allocated to tackling climate change).\n- Public-private financing packages and project preparation support are intended to increase project bankability and mobilize private capital, with private-sector climate projects currently receiving approximately $610 million across GCF, development partners, national implementing entities, private banks, and GoB contributions." }, { "heading": "Notable outcomes cited from past engagement", "content": "- World Bank-supported investments in early warning systems, embankments, cyclone shelters, and afforestation have helped reduce cyclone-related fatalities 100-fold since independence and built greater resilience for 6.3 million people in vulnerable coastal regions.\n\nInternational Monetary Fund press release, December 3, 2023.\n\n---\n\n\n References\n\n- https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva\n- Bangladesh and the IMF\n- Technical Assistance -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments" } ], "bullets": [ "[Markdown version](/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments/index.md)", "[Structured JSON version](/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments/index.json)", "[Bundle manifest](/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments/bundle-manifest.json)", "Published: December 3, 2023", "International financial institutions, bilateral donors, and private sector partners are collaborating with the Government of Bangladesh to establish the Bangladesh Climate and Development Platform (BCDP), a project preparation facility, and to mobilize financial commitments for public and private investments for adaptation and mitigation following the Resilience and Sustainability Facility (RSF) arrangement.", "The collaboration aims to leverage additional private sector investment in the future and bolster Bangladesh’s efforts to address climate change impacts on vulnerable communities.", "The initiative is described as the first partnership of its kind in Asia.", "The $1.4 billion Resilience and Sustainability Facility (RSF) arrangement was approved by the IMF’s Executive Board in January 2023.", "World Bank programmatic series of Green and Climate Resilient Development (GCRD) Policy Credits total $1 billion.", "The ADB has ongoing funding for climate projects in Bangladesh, including processing a $400 million policy-based loan in 2023.", "RSF arrangement: $1.4 billion.", "World Bank GCRD Policy Credits: $1 billion.", "ADB 2023 project financing allocated towards climate financing so far: 53 percent of $1.9 billion.", "ADB commitment for 2024-26 allocation for Bangladesh: $5.5 billion, with ADB committed to allocating more than half toward the GoB’s climate agenda.", "Korean Government pledge: $50 million.", "AIIB consideration at request of GoB: $400 million in 2024.", "GCF public and private sector projects supporting Bangladesh: totaling over $400 million.", "Bangladesh Renewable Energy Facility total: $430.5 million.", "Renewable Energy Facility expected mobilization: up to $763 million in investments.", "Renewable Energy Facility estimated contribution to capacity: an estimated 750 MWp of new renewable energy capacity.", "AFD processing a ~$320 million climate policy-based loan program.", "Private sector climate project financing breakdown:", "JICA loan agreement with BRAC Bank in early 2023: $90 million.", "World Bank decade commitment to climate change mitigation and adaptation financing in Bangladesh: $7.2 billion, representing 35 percent of total IDA commitments in Bangladesh across all sectors.", "Outcome cited: resilience-building measures have helped build greater resilience for 6.3 million people living in vulnerable coastal regions.", "RSF arrangement and GCRD credits support reforms to:", "Specific reforms include:", "Expected outcomes of reforms and partner collaboration:", "Ministry of Environment, Forest, and Climate Change (MoEFCC) formed the National Committee for Environment and Climate Change (NCECC) as an inter-ministerial platform headed by the Prime Minister.", "A multi-donor/multi-sector project preparation facility will be established within the BCDP to improve bankability of priority projects and support scalability to attract private investments.", "The facility aims to mainstream projects in development plans while reducing the financial burden on the public sector.", "The ADB and the World Bank are preparing the facility, enhancing coordination with other development partners.", "World Bank:", "JICA:", "UNDP:", "GCF:", "EIB/EU (Team Europe):", "IFC:", "MIGA:", "Standard Chartered Bank (SCB):", "UK Taskforce on Access to Climate Finance:", "UNDP:", "JICA:", "The Renewable Energy Facility is expected to mobilize up to $763 million and contribute an estimated 750 MWp of new renewable energy capacity.", "The AFD and Team Europe commitments aim to continue allocating a significant share of their Bangladesh financing to climate change (AFD: since 2015, more than 75 percent of AFD project financing provided to Bangladesh—over $1 billion—allocated to tackling climate change).", "Public-private financing packages and project preparation support are intended to increase project bankability and mobilize private capital, with private-sector climate projects currently receiving approximately $610 million across GCF, development partners, national implementing entities, private banks, and GoB contributions.", "World Bank-supported investments in early warning systems, embankments, cyclone shelters, and afforestation have helped reduce cyclone-related fatalities 100-fold since independence and built greater resilience for 6.3 million people in vulnerable coastal regions.", "[https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)", "[Bangladesh and the IMF](http://www.imf.org/external/country/BGD/index.htm)", "[Technical Assistance -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-capacity-development)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments/index.md", "json": "/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments/index.json", "bundleManifest": "/en/news/articles/2023/12/03/bangladesh-launch-climate-development-platform-to-leverage-adaptation-and-mitigation-investments/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T02:33:27.910Z" }