Bangladesh eyes $100m from Orange Climate Fund for growth, employment

Bangladesh could attract up to $100 million in investment through a proposed Orange Climate Fund as policymakers, investors and market leaders push for the development of a stronger, inclusive financial ecosystem to support sustainable and climate-resilient economic growth.
The investment prospect emerged at the Orange Economy Summit 2026 held in the capital on Tuesday, where stakeholders highlighted the growing role of innovative financing instruments and impact investment in mobilising long-term capital for Bangladesh's development priorities.
The summit, jointly organised by the Dhaka Stock Exchange (DSE), Impact Investment Exchange (IIX) and the Policy Research Institute of Bangladesh (PRI), focused on building Bangladesh's Orange Capital Ecosystem, expanding inclusive finance and attracting global capital to support the country's economic transformation, according to a press release.
Bangladesh Bank Deputy Governor Dr Md Habibur Rahman attended the event as chief guest. Senior government officials, regulators, representatives from financial institutions, corporate entities, development partners and international experts also participated.
Speaking at the summit, IIX Founder and Chief Executive Officer Professor Durreen Shahnaz said Bangladesh has been identified as a priority market under IIX's proposed $1 billion Orange Climate Fund, with plans to channel $100 million into the country.
Bangladesh's graduation from least-developed country (LDC) status and its ambition to become a trillion-dollar economy would require a stronger and more inclusive financial market capable of attracting long-term investment, she said.
"Bangladesh has immense opportunities in sectors such as ready-made garments, agriculture, renewable energy and financial services," she said, adding that deepening the capital market is critical to unlocking these opportunities.
She described the Orange Movement as a global initiative aimed at building inclusive capital markets and mobilising $10 billion by 2030 through innovative financing structures that combine financial returns with measurable social and environmental impact.
Prof Shahnaz said IIX has facilitated more than $18 million in investments in Bangladesh over the past decade and supported the issuance of the country's first Orange Bond.
In his welcome remarks, DSE Managing Director Nuzhat Anwar said sustainable development requires a balance between economic growth, social inclusion and climate resilience.
She said the stock exchange remains committed to promoting sustainable finance, strengthening corporate governance and aligning with international standards.
Presenting a keynote paper, PRI Chief Economist Dr M Ashiqur Rahman said Bangladesh faces significant challenges in employment generation, climate adaptation and productivity enhancement as it moves towards becoming a trillion-dollar economy.
He observed that structural constraints in banking, capital markets, bond markets and venture capital financing continue to limit the availability of long-term funding for productive sectors.
Against this backdrop, he argued that orange capital could serve as an innovative financing framework capable of directing investment toward sectors that generate economic, social and environmental benefits simultaneously.
Deputy Governor Dr Habibur Rahman said Bangladesh Bank has undertaken various initiatives to strengthen financial inclusion and women's economic empowerment.
Dr Rahman reaffirmed the central bank's support for efforts to attract orange investments and underscored the importance of positioning Bangladesh as a preferred destination for sustainable and impact-oriented capital.
Referring to the country's first Orange Zero-Coupon Bond issued through Sajida Foundation, he described the initiative as a landmark achievement for Bangladesh's capital market and a significant step toward developing a broader impact-investment ecosystem.

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