Bangladesh launches second phase of climate finance project

The Government of Bangladesh today inaugurated the second phase of the Inclusive Budgeting and Financing for Climate Resilience (IBFCR-II) project in Dhaka, a flagship initiative designed to integrate climate priorities into the country's budgeting and financial management systems.

Organised by the Finance Division in collaboration with the United Nations Development Programme (UNDP) and supported by the Agence Française de Développement (AFD), the inception workshop brought together senior government officials, development partners, academics, and climate finance experts to outline the next steps for mainstreaming climate resilience in public finance.

Speaking as the chief guest, Finance Division Secretary Dr. Md. Khairuzzaman Mozumder stressed the urgency of mobilizing resources for adaptation and resilience. Bangladesh is among the most climate-vulnerable countries in the world, and our policies, programmes, and financing must reflect this reality. To meet our adaptation targets by 2050, we will need around $8.5 billion annually. This makes it urgent to mobilise resources through a joint effort that engages all stakeholders, particularly the private sector, in investing in climate change adaptation and mitigation. Through coordinated policies and platforms like IBFCR, we are aligning development efforts and mobilising resources to build resilience and strengthen our national response."

Stefan Liller, resident representative of UNDP Bangladesh, underscored the importance of climate-informed budgeting in protecting development gains. "As we embark on the second phase of this programme, UNDP stands ready to continue supporting Bangladesh in strengthening systems, mobilising resources, and building resilience."

AFD Deputy Country Director Cecilia Cortese underlined the importance of IBFCR-II within AFD's broader support to the Government of Bangladesh in addressing climate change. Recognising the scale and complexity of the challenge, she expressed confidence in the government's ability to deliver results. "AFD is proud to stand alongside you as partners in this important project," she said.

Chairing the inaugural session, Additional Secretary Bilquis Jahan Rimi emphasised the government's commitment to embedding climate resilience across the budget cycle and ensuring financial planning aligns with national development priorities.

The technical sessions featured a presentation on the IBFCR-II roadmap by Dr Maliha Muzammil of the UNDP, followed by insights from climate change expert Dr Fazle Rabbi Sadeque Ahmad and Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue.

A panel discussion, moderated by Dr Ziaul Abedin, brought together senior policymakers to discuss cross-ministerial coordination, transparency, and institutional capacity-building to ensure climate finance reaches those most exposed to climate risks.

Building on Phase I, the three-year initiative will update and operationalise Bangladesh's Climate Fiscal Framework, strengthen the Climate Finance Tracking System, and develop a National Climate Finance Strategy. It will also reinforce local-level planning through tools such as the Local Adaptation Plan of Action and the Climate Vulnerability Index, ensuring resources support community-led adaptation and resilience.

The workshop concluded with a vote of thanks from Muhammad Abul Kasem, Joint Secretary of the Finance Division, with participants agreeing that inclusive, climate-responsive public finance is central to Bangladesh meeting its climate commitments and sustaining development progress.