ADB gives $400 million to support climate priorities in Bangladesh

The Asian Development Bank (ADB) will give Bangladesh a $400 million policy-based loan to support implementation of the nation's National Adaptation Plan, 2023-2050 and Nationally Determined Contributions 2021 Update to the Paris Agreement to achieve a climate-resilient inclusive development.

This assistance is the first subprogram of the indicative $700 million Climate-Resilient Inclusive Development Programme.

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, the ADB said in a statement.

Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), and Edimon Ginting, country director of the ADB, signed the loan agreement at a ceremony at the ERD in Dhaka today.

"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," Ginting said.

The programme will create an enabling institutional and policy environment to mobilize climate finance, prioritise climate actions in the country's overall development agenda, the ADB country director said.

It will also help the government implement reforms in climate-critical sectors, including agriculture, disaster management, transport and infrastructure, urban development, and energy, he said.