Scaling climate adaptation: Addressing shrinking international grants
Bangladesh is grappling with a critical climate adaptation funding crisis as international grants shrink and domestic resources remain limited. These issues were discussed at a roundtable titled "Scaling Climate Adaptation: Addressing Shrinking International Grants", organised by Care Bangladesh held at Le Méridien Hotel in Dhaka on 17 December.
Include 'Government Representatives, donors' first development practitioners, private sector representatives and financial institutions took part in the dialogue. The session was moderated and the
keynote was presented by Mrityunjoy Das, Deputy Director, Humanitarian and Resilience Futures Program, CARE Bangladesh.
Emebet Menna
Deputy Country Director (Program), CARE Bangladesh
Keep updated, follow The Business Standard's Google news channel
Bangladesh is in a critical position as shrinking international grants are creating serious financing constraints. Strong local leadership and coordination among stakeholders are essential. Climate adaptation must include vulnerable communities, women and youth to ensure no one is left behind.
Adaptation financing should be treated as a public good, not merely a commercial investment. Emphasis is needed on locally led, results-driven and sustainable models to ensure just, inclusive and effective adaptation financing planning for Bangladesh.
Mrityunjoy Das
Deputy Director, Humanitarian and Resilient Futures Program, CARE Bangladesh
According to the National Adaptation Plan, Bangladesh requires nearly $230 billion by 2050 – about $8 billion annually. However, in 2023-24, only $3.3 billion was mobilised, meeting 27% of the need.
With international grants declining, a system transition is needed through stronger engagement of government institutions, local
authorities and the private sectors. While private investment has potential, adaptation projects are rarely commercially viable, and blended finance often falls short.
The core challenge is balancing public and private finance while ensuring inclusion of vulnerable communities. We will always be looking for public funding grant funding as a civil society organisation for adoption.
Mohammad Rajibul Islam
Joint Secretary, Economic Relations Division
The main challenge is increasing private sector engagement in climate adaptation projects, alongside persistent misuse of climate funds. While the government, private sector, NGOs and other stakeholders are pursuing various initiatives, funding gaps remain critical.
Innovative and blended finance models are needed, but they must ensure transparency, efficiency and trust. Addressing data and knowledge gaps through research is also essential.
A coordinated, community-based and participatory whole of society approach is needed for effective climate financing in terms of adaptation and sustainable development as well as sustainable development. Stakeholder contributions will help shape policy and guide future adaptation planning.
Sohanur Rahman
Executive Coordinator, YouthNet for Climate Justice
Bangladesh faces clear limits to climate adaptation. Carbon markets can be harmful without justice safeguards. Transparency, trustworthy climate funds, strong political leadership, local capacity, youth and public participation are essential.
Corruption, weak coordination and capacity remain major barriers. Effective engagement of the private sector, banks and local governments, along with accountable use of funds, is crucial.
Dr Fazle Rabbi Sadeque Ahmed
Deputy Managing Director, Palli Karma-Sahayak Foundation (PKSF)
Although the Paris Agreement set a $1.3 trillion target, only a small share reaches adaptation, and major economies like the US and China show limited leadership. Bangladesh needs nearly $25 billion annually but mobilises only $10 billion, much of it loan-based, costly and often unsuitable. Strong government leadership, improved public financial management and effective coordination with banks and the private sector are essential for impactful adaptation amid constrained funding.
Dr Haseeb Irfanullah
Independent Consultant - Environment, Climate Change & Research System
Discussions often focus on funding gaps, yet rural communities are already investing in resilience, largely unrecognised. The challenge is moving from global narratives to locally grounded projects. Climate finance must be delivered through government and local initiatives using context-specific, innovative approaches. Bangladesh must develop its own adaptation narrative and considering its ecosystem and biodiversity.
Dr Md Sirajul Islam
Chief of Party – Business and Private Sector Development, International Rice Research Institute (IRRI)
Our primary goal is to protect lives and livelihoods while reducing climate risks. At ERI, we have launched a rice breeding programme through a public-private partnership. CSR funding and private sector participation are important, but incentives are crucial.
Effective coordination among government, donors and private actors can deliver impactful, blended-finance. Scaling proven models can reduce vulnerability, strengthen resilience and support long-term sustainable development.
Farzana Rahman
Programme Officer - Climate and Sustainable Finance, United Nations Development Programme (UNDP)
Bangladesh is boosting climate finance readiness and private sector engagement, aligning with national plans and regulators, and developing a tool with Bangladesh Bank to assess climate risks. Clear incentives are essential for private sectors for effective investment in adaptation initiatives in Bangladesh.
Kaiser Rejve
Director, Humanitarian and Resilient Futures Program, CARE Bangladesh
From CARE's perspective, adaptation is people-centred and community-rooted. The main challenge is equipping people with the skills, awareness and capacity to respond to climate impacts. Civil society is vital in empowering youth, women and communities to reduce risks and recover quickly, investment into preparedness and climate resilient on strengthening livelihoods local and innovation.
Kazi Amdadul Hoque
Senior Director (Strategic Planning) and Head of Climate Action, Friendship
Bangladesh has already built significant climate and adaptation capacity and seeks international climate finance as a right, while also leveraging domestic resources. Combining grey infrastructure with nature-based solutions, such as green embankments, can protect coastal areas effectively.
Relying solely on CSR or standard investments is insufficient; coordinated policies, banking, and civil society engagement can enable sustainable, innovative financing. The goal is to integrate alternative funding sources, biodiversity, and projects to ensure long-term, resilient adaptation.
Ahmed Zubaer Mahbub
Joint Director, Bangladesh Bank
Bangladesh is highly climate-vulnerable, but adaptation presents opportunities. Initiatives like solar irrigation, EV charging and climate-smart agriculture can boost livelihoods and create new business models. Financing is shifting to investment-based, blended and locally managed approaches.
Prioritising projects, defining private sector roles and mobilising government support are essential, while microfinance, CSR, green bonds and international investment enable sustainable adaptation. Integrated planning, clear priorities and coordinated participatory approaches remain key.
Md Samiun Nabi
Head, Strategic Planning & Business Development Unit (SPB), IWM
Global shifts are creating new opportunities for adaptation in Bangladesh. Donors are acting as investors, and CSR alone is insufficient. With the right data, technology and partnerships, initiatives like climate bonds, IWB agriculture, composting and irrigation can succeed. Strong government support and collaboration can attract international investment and deliver impactful results.
Md Shamsuddoha
Chief Executive, Center for Participatory Research and Development (CPRD)
Adaptation projects are largely privately funded, with current policies and international approaches focusing on technology while overlooking social and human dimensions. Aligning projects with profitability and social benefits can enhance private and CSR funding. Proper regulations and trustworthy models are needed to ensure efficient use that benefits reach intended communities.
Mollah Amzad Hossain
Editor, Energy and Power
In Bangladesh, poor coordination and unreliable information hinder adaptation efforts, while limited investigative journalism weakens transparency. Despite private sector contributions, government management and trust remain uncertain. Effective adaptation requires a robust framework, legal provisions and monitoring systems, with the media supporting transparency and encouraging private sector engagement.
Syed Matiul Ahsan
Programme Adviser, Embassy of Denmark
Over the past 20 years, Bangladesh has increasingly emphasised Public Private Partnership and blended finance in policy and economic strategies. Adaptation projects remain small, fragmented, and lack a clear national definition. Effective solutions require scientific evidence, bankable models, coordinated efforts among government, NGOs, academia, and media, and clear criteria and indicators. The focus must go beyond funding to ensure tangible benefits and measurable results.
Selina Shelley Khan
Chief of Party, NABAPALLAB project, CARE Bangladesh
In Bangladesh, private sector CSR is largely limited to sports and cultural activities but could play a major role in agriculture, especially in women-focused climate adaptive initiatives. Strengthening administrative support and women's leadership at the union level, alongside local investment and empowerment through CSOs and NGOs, can significantly enhance environmental adaptation.
Rabeya Begum
Director, Shariatpur Development Society
In Bangladesh, locally led adaptation projects receive limited private and public funding, often restricted to emergency situations. Effective support rarely reaches flood- and erosion-prone areas, and farmers lack access to essential government-provided seeds and fertilisers. Climate funds frequently fail to deliver real benefits, highlighting the need for addressing practical challenges and improving transparency.
SM Munjurul Hannan Khan
Executive Director, NACOM
Preparation for adaptation financing in Bangladesh remains insufficient. Institutions lack appropriate legal frameworks and awareness, and funding sources in the National Adaptation Plan are unclear. The private sector is largely unaware and minimally engaged in policy processes. Strengthening policy, legal frameworks, and institutional capacity is essential, alongside an integrated structure and global diplomatic coordination.
Partha Hefaz Shaikh
Director – Programmes and Policy Advocacy, WaterAid
In Bangladesh, balancing public and private funding is critical for adaptation finance. Extreme poverty requires primarily government funding, while private investment needs clear returns. Place-based projects in agriculture, water, and waste management require blended finance. High-level coordination and data-driven decision-making are essential in policies and planning.
Syeda Afzalun Nessa
Head of Sustainability, HSBC
The banking sector primarily safeguards deposits and seeks returns on investment (ROI). Supported by Bangladesh Bank, progress in sustainable finance is ongoing. HSBC is involved in projects such as mangrove-based shrimp farming, drip irrigation, carbon credits, and climate-smart agriculture. Impactful initiatives aligned with government policies and blended finance can drive long-term change.
Sudhir Chandra Nath
Business Director, ACI SEED, ACI
The private sector in Bangladesh remains under-engaged in climate finance and resilience initiatives, hindered by a lack of proven investment models. Farmers often lack knowledge of resilient crops. Research-backed examples, combined with soft loans or bank support, can attract larger investments and develop effective climate financing models.
Md Mizanur Rahman
Chief Executive Officer, METAL Group
In Bangladesh, both private and public sectors support agriculture, with climate change heightening the need for resilient machinery in coastal and waterlogged areas. Tractors, power tillers, rice transplanters, sensors and drones are key. Local manufacturing, tax exemptions, training and NGO-private sector collaboration are essential to advance these innovations.
