Bangladesh begins work on first national climate finance strategy

Bangladesh has taken a major step towards 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), convened a high-level workshop in Dhaka today to gather perspectives from private sector representatives, financial regulators, relevant government agencies, and development partners on mobilising private finance for climate action.

The initiative comes at a decisive moment for climate-vulnerable nations. At COP30, world leaders warned that adaptation finance remains dangerously insufficient despite escalating risks from sea-level rise, extreme heat, and climate-related disasters. Although responsible for less than 0.56 per cent of global emissions, Bangladesh ranks ninth among the world's most climate-exposed countries, with annual financing needs estimated at USD 26 billion.

The National Climate Finance Strategy is an output of UNDP's Inclusive Budgeting and Financing for Climate Resilience (IBFCR II) project, supported by the Agence Française de Développement (AFD). It aims to align public financial management reforms, regulatory incentives, and private sector investment to mobilise climate finance at scale.

Speaking as chief guest, AKM Sohel, Additional Secretary and UN Wing Chief at the Economic Relations Division, Ministry of Finance, said: "Despite being highly vulnerable, Bangladesh receives only a fraction of the climate finance it requires. A clear climate finance strategy will help us navigate this imbalance, develop bankable projects, and position Bangladesh to secure the financing necessary for long-term resilience."

Special guest, Dr Ainun Nishat, Professor Emeritus at BRAC University, said: "Effective climate action requires full implementation of the National Adaptation Plan, alongside stronger capacity building and technology transfer. Integrating climate considerations across all ministries is essential to addressing this growing threat."

Md Rafiqul Islam, Executive Director of Bangladesh Bank, said: "Bangladesh is one of the world's most climate-vulnerable countries, and as we shift to a low-carbon development path, sustainable and climate finance becomes pivotal."

Owais Parry, Country Economic Advisor at UNDP, said: "Bangladesh already invests billions in climate action, but the gap remains vast. To safeguard people and drive long-term growth, the country must mobilise far more and do so through both public and private channels. A national climate finance strategy will help Bangladesh tap new sources of capital, align policies, and unlock the financing needed for a resilient and inclusive future."

Dr Maliha Muzammil, Specialist for Climate Change and Sustainable Financing at UNDP Bangladesh, delivered a keynote presentation on "The Need for a National Climate Finance Strategy in Bangladesh", followed by a technical session facilitated by UNDP experts. Discussions covered challenges in accessing public and private climate finance, including blended finance, green bonds, sustainability-linked loans, insurance solutions, and public-private partnerships.

The event is the first of three consultation workshops. The Finance Division and UNDP will next engage key ministries, divisions, and agencies, followed by development partners and development finance institutions in a final session. Insights from all workshops will be consolidated into a draft National Climate Finance Strategy for further national consultation.

The strategy is expected to help Bangladesh mobilise larger, more predictable, and more diversified climate finance in the coming years, bridging global commitments made at COP30 with national efforts to protect people, livelihoods, and ecosystems.