UNDP partners with BSEC to boost sustainable finance framework

The United Nations Development Programme (UNDP) and the Bangladesh Securities and Exchange Commission (BSEC) signed a memorandum of understanding today at the BSEC Bhaban in Dhaka, aimed at mobilising long-term domestic and international capital for climate-resilient, and socially impactful investments.

Under the agreement, UNDP will support BSEC in developing key market infrastructure, including a Sustainable Finance Taxonomy, an Impact Measurement and Monitoring Framework (IMMF), and a third-party verification mechanism. These initiatives are expected to enhance transparency, comparability, and credibility of thematic bond issuances, addressing a major concern of global investors.

A core focus of the collaboration is aligning Bangladesh's thematic bond market with international standards, including those promoted under the EU-supported Global Green Bond Initiative, backed by the Green Climate Fund.

Speaking at the signing ceremony, Stefan Liller, UNDP Bangladesh Resident Representative, said Bangladesh's capital market holds significant potential to raise long-term financing for high-impact environmental and social investments through thematic bonds. He said that as Bangladesh moves beyond its least developed country status and faces increasing climate risks, thematic bonds can help attract essential domestic and global capital. He added that UNDP remains committed to working with BSEC to strengthen the ecosystem required to scale up such instruments.

Khondoker Rashed Maqsood, Chairman of BSEC, said the regulator is committed to strengthening governance, enhancing transparency, and building investor confidence to ensure the evolution of the capital market framework. He said BSEC, in collaboration with UNDP and other stakeholders, will continue to provide a supportive and predictable regulatory environment to enable sustainable finance market development.

Highlighting UNDP's global experience in sustainable finance, Maliha Muzammil, Programme Specialist of UNDP Bangladesh, said the partnership would focus on strengthening regulatory frameworks, enhancing issuer capacity, and ensuring robust impact measurement to attract private capital aligned with national development and climate priorities.

The ceremony was attended by BSEC Commissioners Farzana Lalarukh and Md Ali Akbar, and Owais Parray, Country Economic Adviser of UNDP Bangladesh, who emphasised the importance of issuer readiness and credible impact reporting in developing a strong pipeline of high-quality thematic bonds. Senior officials from both BSEC and UNDP were also present.