The Asian Development Bank (ADB) and the Government of Bangladesh today signed a USD 400 million policy-based loan agreement. The loan is being provided to help the Government of Bangladesh implement its National Adaptation Plan, 2023-2050. The loan will support Nationally Determined Contributions 2021 in keeping up with the Paris Agreement to achieve climate-resilient inclusive development.
In a ceremony organized at the ERD of the capital on Monday, the Secretary of the Economic Relations Department on behalf of Bangladesh and ADB respectively. Shahriar Quader Siddiqui and ADB Country Director Edimon Ginting signed the loan agreement.
The assistance is the first subprogramme of the USD 700 million climate-resilient inclusive development program, according to a press release. Bangladesh is one of the most vulnerable countries in the world due to the adverse effects of climate change. The average annual loss due to adverse effects of climate change is about 3 billion US dollars.
ADB Country Director Edimon Ginting said, “As the region’s climate bank, ADB is committed to supporting the Government of Bangladesh in climate action to strengthen climate resilience, transition to a low-carbon economy, reduce greenhouse gas emissions, mainstream gender equality and take progressive steps towards social inclusion. The program will create an enabling institutional and policy environment to mobilize climate finance and prioritize climate action in the country’s overall development agenda, and support governments in implementing climate reforms in agriculture, disaster management, transport and infrastructure, urban development and energy.’
The program facilitates the formation of a National Committee on Environment and Climate Change headed by the Prime Minister to coordinate between ministries in implementing the government’s climate priorities. The program will closely support the government in managing the Bangladesh Climate and Development Partnership. It was recently presented at COP-28.
The program will help mainstream climate priorities in government planning and resource allocation, and mobilize climate finance through green bonds and sustainable fiscal policies. ADB is also supporting climate-resilient city action plans and improving municipal drainage systems to reduce flooding in urban areas.