The Asian Development Bank (ADB) today approved a US$400 million loan aimed at bolstering Bangladesh’s resilience against climate impacts, reducing emissions in critical sectors, and fostering inclusive development across the nation.
This substantial funding will support the second phase of the Climate-Resilient Inclusive Development Program (CRIDP). The program also benefits from significant cofinancing, including nearly $113 million from the Agence Française de Développement and an additional $400 million from the Asian Infrastructure Investment Bank (AIIB).
Sameer Khatiwada, ADB Senior Public Sector Economist, commented on the approval: “The program will help Bangladesh achieve its climate goals more efficiently by bringing government agencies together and aligning their work with national policies.” He further added, “It will also remove obstacles to mobilizing climate finance, reinforce adaptation efforts in priority sectors, and speed up actions to reduce climate impacts.”
Under the CRIDP, the Bangladesh Climate Development Partnership will be established. This partnership’s mandate is to secure climate finance and assist government ministries in more effectively developing, implementing, monitoring, and evaluating climate-related projects. A new framework is also planned to scale up local adaptation measures that are both youth-related and gender-responsive. Furthermore, the program will support a national disaster risk financing strategy, incorporating crucial instruments such as crop insurance, disaster risk insurance, and contingent disaster financing.
Additionally, the program will contribute to the update of the Revised Strategic Transport Masterplan for Dhaka (2025-2034) and oversee the implementation of renewable energy components within the Integrated Energy and Power Master Plan, with the overarching goal of promoting climate-friendly transport systems and renewable energy adoption.
Bangladesh stands as one of the world’s most climate-vulnerable nations. Recent studies indicate that if high greenhouse gas emissions persist, the country could face a loss of up to one-third of its gross domestic product (GDP) by 2070. Tropical cyclones alone currently cause approximately $1 billion in damages annually, equivalent to 0.7% of GDP. Projections suggest that severe flooding could shrink the economy by as much as 9% compared to expected growth by 2050. By the same year, Bangladesh risks losing 17% of its land and 30% of its food production, potentially pushing food and nutrition security to a critical juncture.
The CRIDP directly addresses key challenges, including the absence of a holistic and effective institutional framework, as well as inadequate climate financing and limited private sector participation. Its core focus is on fostering a supportive environment for climate actions, strengthening adaptation strategies, and accelerating mitigation efforts.
The ADB, a leading multilateral development bank founded in 1966 and owned by 69 members (50 from the region), is committed to supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. It collaborates with its members and partners to tackle complex challenges, leveraging innovative financial tools and strategic partnerships to improve lives, build quality infrastructure, and safeguard the planet.
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