BD gets $400m ADB loan for climate priorities

The Asian Development Bank (ADB) will provide US$400 million as policy-based loan to help Bangladesh implementing its National Adaptation Plan 2023-2050 and Nationally Determined Contributions 2021 Update to the Paris Agreement to achieve a climate-resilient inclusive development.

Economic Relations Division (ERD) Secretary Shahriar Kader Siddiky and the ADB Country Director for Bangladesh Edimon Ginting signed the loan agreement on behalf of their respective sides at a ceremony at ERD in Dhaka on Monday, said an ADB press release.

This assistance is the first subprogramme of the indicative $700 million Climate-Resilient Inclusive Development Programme, it said, adding that Bangladesh is one of the world's most vulnerable countries to the adverse impacts of climate change, recording an annual average loss of about $3 billion.

"As the region's climate bank, ADB is committed to support Bangladesh's progressive actions to strengthen its climate resilience, transition to a low-carbon economy, mitigate its greenhouse gas emissions, and mainstream gender equality and social inclusion in the government's climate actions," Edimon Ginting was quoted as saying.

The programme aims to create an enabling institutional and policy environment to mobilise climate finance, prioritise climate actions in the country's overall development agenda, and help the government implement reforms in climate-critical sectors, including agriculture, disaster management, transport and infrastructure, urban development, and energy.

It facilitated the creation of the National Committee for Environment and Climate Change, headed by the Prime Minister, for holistic implementation of the government's climate priorities across ministries.

The programme will intensively support the government in operationalising the Bangladesh Climate and Development Partnership presented recently at COP28, said the statement.

Besides, the programme also supports the mainstreaming of climate priorities in government planning and resource allocation, and the mobilisation of climate finance through green bonds and sustainable finance policy, it mentioned.

At the sectoral level, the programme promotes climate-smart and climate-resilient agricultural practices, especially those that favour female farmers, adaptation of solar irrigation pumps, introduction of climate-resilient infrastructure design and planning, and regulatory framework for adaptation of electric vehicles and introduction of electric buses in the public transport fleet.

ADB also helps promote climate-resilient city action plans and improved drainage system for municipalities to reduce urban flooding, according to the press release.

In October 2021, ADB announced it is raising its ambition to deliver climate financing to its developing member countries to $100 billion from 2019 to 2030. This will expand access to new, climate-focused technologies and mobilise private capital toward climate finance, it added.

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