The Asian Development Bank (ADB) and the government of Bangladesh on Monday signed a $400 million policy-based loan to support Bangladesh in implementing its National Adaptation Plan 2023–2050 and Nationally Determined Contributions 2021 Update to the Paris Agreement to achieve a climate-resilient inclusive development.

Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), and Edimon Ginting, Country Director, ADB, signed the loan agreement on behalf of their respective parties at a ceremony at ERD in Dhaka.

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This assistance is the first subprogram of the indicative $700 million Climate-Resilient Inclusive Development Program. 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,” said ADB Country Director Edimon Ginting.

The program will create an enabling institutional and policy environment to mobilize climate finance, prioritize 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, said the Manila-based regional development bank.

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The program 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 program will intensively support the government in operationalizing the Bangladesh Climate and Development Partnership presented recently at COP28.

The program supports the mainstreaming of climate priorities in government planning and resource allocation, and the mobilization of climate finance through green bonds and sustainable finance policy.

At the sectoral level, the program promotes climate-smart and climate-resilient agricultural practices, especially those that favor 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 systems for municipalities to reduce urban flooding.

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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 mobilize private capital toward climate finance.