In a collaborative effort, international financial institutions, bilateral donors, and private sector entities are joining forces with the government of Bangladesh to introduce the Bangladesh Climate and Development Platform (BCDP), a project preparation facility.
The platform aims to attract increased private sector investment for adaptation and mitigation initiatives in Bangladesh, building on the Resilience and Sustainability Facility (RSF) arrangement, said a press release of the International Monetary Fund (IMF).
The establishment of the platform marks a groundbreaking partnership in Asia, arising within the framework of the $1.4 billion RSF arrangement sanctioned by the IMF executive board in January 2023.
Complementing this initiative are the World Bank's series of Green and Climate Resilient Development (GCRD) Policy Credits, totalling $1 billion, and the Asian Development Bank's (ADB) ongoing funding for climate projects in Bangladesh.
The collaborative approach involves key stakeholders, including the Asian Development Bank (ADB), World Bank, International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), Asian Infrastructure Investment Bank (AIIB), Agence Française de Développement (AFD), the European Union and the European Investment Bank (EIB) as part of Team Europe, the Green Climate Fund (GCF), the government of South Korea, Japan International Cooperation Agency (JICA), and the United Kingdom. Together, they aim to support a comprehensive set of measures for Bangladesh, enhancing the nation's capacity to both mitigate and adapt to the impacts of climate change.
The RSF arrangement and GCRD credits are designed to bolster reforms that strengthen Bangladesh's resilience to climate change, drive economic decarbonisation, and manage transition risks.
Specific reforms under the IMF program and the GCRD include integrating climate and green dimensions into public procurement and planning, incentivizing locally led climate actions, and scaling up a national disaster risk financing strategy.
Further reforms involve the adoption of a periodic formula-based price adjustment mechanism for petroleum products, addressing air pollution and greenhouse gas emissions, enhancing the efficiency and resilience of water supply and sanitation services, and updating the Policy on Green Bond Financing for the Bangladesh Bank.
These reforms, coupled with collaboration among partners, are anticipated to create an enabling environment that attracts additional climate finance.
