In a first in Asia, development partners have come together to announce an $8 billion fund to help Bangladesh mitigate and adapt to the effects of climate change.

This collaborative approach is being spearheaded by the International Monetary Fund.

"Bangladesh has been at the forefront of those warning about the elevated risks of climate change for vulnerable countries as well as stressing the importance of international collaboration to support those in need," said Kristalina Georgieva, the MD of IMF, in a statement yesterday.

The country has made significant strides to bolster climate resilience, adaptation, preparedness and conservation, she said in a statement released on the sideline of COP28 that is currently taking place in Dubai.

"We commend Bangladesh's steadfast implementation of their climate agenda and their tireless efforts to promote global collective action to address climate change," she added.

The development partners that have come together for the Bangladesh Climate and Development Platform (BCDP) are the Asian Development Bank (ADB); World Bank; International Finance Corporation (IFC); Multilateral Investment Guarantee Agency (MIGA); Asian Infrastructure Investment Bank (AIIB); Agence Française de Développement (AFD); the EU and the European Investment Bank (EIB), as part of Team Europe; the Green Climate Fund (GCF), the government of South Korea; Japan International Cooperation Agency (JICA), Standard Chartered Bank and the UK.

The partnership takes place in the context of the $1.4 billion Resilience and Sustainability Facility (RSF) arrangement approved by the IMF in January, the programmatic series of Green and Climate Resilient Development (GCRD) Policy Credits by the WB totalling $1 billion, and the ADB's ongoing funding for climate projects in Bangladesh.

World Bank Group President Ajay Banga said today's announcement once again shows Bangladesh's strong commitment in collaborating with international and local partners to address climate challenges.

"The urgency is high, and we all need to work together to share knowledge and provide financing to the countries that are most vulnerable to the impacts of climate change."

The ADB is processing a $400 million policy-based loan to Bangladesh, while about 53 percent of its 2023 project financing ($1.9 billion) has been allocated towards climate financing so far.

The Manila-based lender is also committed to allocating more than half of its 2024-26 allocation for Bangladesh ($5.5 billion) in support of the government's climate agenda.

ADB President Masatsugu Asakawa said: "Climate risk is growing and addressing it requires progressive action and strong partnerships. With commitment and leadership, Bangladesh has made significant progress in advancing its climate agenda."

"ADB is firmly committed to working with all development partners to support Bangladesh in the fight against climate change."

The Korean government pledged $50 million and the AIIB is considering the provision of an additional $400 million in 2024 at the request of the government.

The UK, through its Taskforce on Access to Climate Finance, will support improved coordination of bilateral climate finance, as well as support to the government to increase access to all sources of climate finance, building on a country-owned programmatic approach to climate finance.

The GCF is supporting several public and private sector projects, totalling over $400 million, including national direct access entities and in sectors such as energy, agriculture, water management and resilient livelihood.

In addition, several other multi-country programs, which include Bangladesh, are in the GCF's pipeline.

Team Europe has committed to providing an EU-guaranteed EIB Loan of $381.5 million in support of renewable energy projects in Bangladesh.

The Renewable Energy Facility is expected to mobilise up to $763 million in investments and contribute to the installation of an estimated 750 MWp of new renewable energy capacity in Bangladesh.

The EIB support will be accompanied by an EU Grant worth $49 million, including Technical Assistance ($6.5 million) and an Investment Grant ($42.5 million) provided under the EU Global Gateway strategy.

AFD is processing a $320 million climate policy-based loan program, aligned and complementary to the IMF, WB and ADB commitments.

JICA will support the BCDP by enhancing its project pipelines aligning Bangladesh's climate change agenda through a combination of technical assistance, concessional loans and grants.

UNDP will continue providing technical assistance to the government on strategic climate change-sensitive planning and budgeting management and strengthened climate public finance governance.

Bangladesh is currently receiving funding for nine private-sector climate projects with contributions of $441.2 million from the GCF, $135.5 million from other development partners, national implementing entities, and private banks.