IFAD approves $51.4m co-financing for climate-resilient project in Bangladesh

The Executive Board of the International Fund for Agricultural Development (IFAD) has approved $51.4 million in financing as IFAD's contribution to the US$211.7 million project in Bangladesh.

This new investment will enhance climate resilience, strengthen food security, and promote rural entrepreneurship for approximately 1.1 million people living in some of the country's most climate-vulnerable regions.

The approval came during its 146th session held on 9-10 December, IFAD said today (13 December).

The Growth for Climate Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project will be implemented over six years, from 2026 to 2031, in the Haor wetlands, Coastal Belt, High Barind, and River Char regions.

By supporting smallholder farmers, rural microenterprises, and young entrepreneurs, the project will foster adaptive capacities to climate change, stimulate diversified and resilient livelihoods, and accelerate the development of sustainable rural enterprises.

The project will be executed by the Financial Institutions Division of the Ministry of Finance and implemented by Palli Karma Sahayak Foundation (PKSF).

Strategic oversight will be ensured through a national steering committee comprising the Finance Division, the Economic Relations Division, and PKSF thereby reinforcing strong governance and alignment with national priorities.

"The GREEN project builds on the long-standing partnership between IFAD and the government of Bangladesh, and our close collaboration with PKSF, to enhance rural livelihoods and expand income opportunities for small producers through inclusive, climate-aware financing and environmentally responsible growth," said Valantine Achancho, IFAD Country Director for Bangladesh.

"This initiative represents a new generation of investment that connects climate adaptation, agroecological practices and market-responsive rural enterprises to create pathways for rural communities to prosper while safeguarding their ecosystems."

The project will scale climate-smart practices across crops, livestock, and fisheries, introducing renewable energy solutions, efficient water-use technologies, organic farming methods, and small-scale processing to raise productivity, conserve natural resources and support healthier and more diverse diets.

Through PKSF's nationwide network, GREEN will expand access to affordable, climate-informed financial services for women, youth, and microenterprises, helping small producers adopt sustainable technologies, strengthen value chains and create rural jobs..

GREEN will also strengthen institutional capacity and deepen policy engagement. Working closely with the Ministry of Finance and the Ministry of Environment, Forest and Climate Change, the project will support the integration of climate adaptation, nutrition, and gender equality into rural finance and development planning.

By linking climate action with entrepreneurship and inclusive finance, GREEN will contribute directly to the Government's 8th Five-Year Plan, National Adaptation Plan, Nationally Determined Contributions, and Delta Plan 2100 while advancing progress toward the Sustainable Development Goals, particularly No Poverty, Zero Hunger, Gender Equality, Reduced Inequalities, and Climate Action.

This new investment is part of IFAD's broader commitment to supporting countries across the Asia and Pacific region build climate-resilient food systems and inclusive rural economies, ensuring that vulnerable communities are better equipped to face future shocks and seize emerging opportunities.