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

The Executive Board of the International Fund for Agricultural Development (IFAD), at its 146th session held on 9–10 December 2025, approved $51.4 million in financing for Bangladesh as part of a $211.7 million project aimed at strengthening climate resilience, food security and rural entrepreneurship.

The investment is expected to benefit around 1.1 million people living in some of the country's most climate-vulnerable regions.

The Growth for Climate Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project will be implemented over six years, from 2026 to 2031, covering the haor wetlands, coastal belt, High Barind and river char regions. The initiative will support smallholder farmers, rural microenterprises and young entrepreneurs to build adaptive capacity to climate change and develop diversified and resilient livelihoods.

The project will be executed by the Financial Institutions Division of the Ministry of Finance and implemented by the Palli Karma Sahayak Foundation (PKSF). A national steering committee comprising the Finance Division, the Economic Relations Division and PKSF will provide strategic oversight.

Valantine Achancho, IFAD Country Director for Bangladesh, said the project built on the long-standing partnership between IFAD and the government of Bangladesh, as well as close collaboration with PKSF, to expand income opportunities for small producers through inclusive and climate-responsive financing.

The GREEN project will scale up climate-smart practices across crops, livestock and fisheries, introducing renewable energy solutions, efficient water-use technologies, organic farming methods and small-scale processing to improve productivity and conserve natural resources.

Through PKSF's nationwide network, the project will expand access to affordable, climate-informed financial services for women, youth and microenterprises, supporting value-chain development and rural job creation.

GREEN will also strengthen institutional capacity and policy engagement by working with the Ministry of Finance and the Ministry of Environment, Forest and Climate Change to integrate climate adaptation, nutrition and gender equality into rural finance and development planning.

The project aligns with the government's 8th Five-Year Plan, National Adaptation Plan, Nationally Determined Contributions and Delta Plan 2100, while contributing to the Sustainable Development Goals, including no poverty, zero hunger, gender equality, reduced inequalities and climate action.