Bangladesh has taken a critical step toward strengthening its climate resilience with the launch of a national consultation process to develop the country’s first National Climate Finance Strategy, aimed at mobilizing private and public finance for climate action.
The Finance Division of the Ministry of Finance, in partnership with the United Nations Development Programme (UNDP), convened a high-level workshop on Thursday in Dhaka. The event brought together private sector representatives, financial regulators, relevant government agencies, and development partners to discuss strategies for mobilizing private finance for climate initiatives.
The initiative comes at a decisive moment for climate-vulnerable nations. At COP30, world leaders warned that adaptation financing remains dangerously insufficient despite escalating risks from sea-level rise, extreme heat, and climate-related disasters. Bangladesh, responsible for less than 0.56% of global emissions, ranks ninth among the world’s most climate-exposed countries and faces annual climate financing needs estimated at $26 billion.
The National Climate Finance Strategy, developed under UNDP’s Inclusive Budgeting and Financing for Climate Resilience (IBFCR II) project, seeks to address this gap by aligning public financial management reforms, regulatory incentives, and private sector investment to mobilize climate finance at scale.
AKM Sohel, additional secretary and UN wing chief, Economic Relations Division, Ministry of Finance, attending as the chief guest, said: “Despite being highly vulnerable, Bangladesh receives only a fraction of the climate finance it requires. A clear Climate Finance Strategy will help us navigate this imbalance, develop bankable projects, and position Bangladesh to secure the financing necessary for long-term resilience.”
Dr Ainun Nishat, professor emeritus at BRAC University and special guest at the event, stressed: “Effective climate action requires full implementation of the National Adaptation Plan, alongside stronger capacity building and technology transfer. Integrating climate considerations across all ministries is essential to addressing this growing threat.”
Md Rafiqul Islam, executive director of Bangladesh Bank, added: “Bangladesh is one of the world’s most climate-vulnerable countries, and as we shift to a low-carbon development path, sustainable and climate finance becomes pivotal.”
Owais Parry, country economic advisor at UNDP, noted: “Bangladesh already invests billions in climate action, but the gap remains vast. To safeguard people and drive long-term growth, the country must mobilize far more and do so through both public and private channels. A national climate finance strategy will help Bangladesh tap new sources of capital, align policies, and unlock the financing needed for a resilient and inclusive future.”
Dr Maliha Muzammil, specialist in Climate Change and Sustainable Financing at UNDP Bangladesh, delivered a keynote presentation on the “Need for a National Climate Finance Strategy in Bangladesh,” followed by a technical session facilitated by UNDP experts. Participants discussed challenges in accessing both public and private climate finance, including blended finance, green bonds, sustainability-linked loans, insurance solutions, and public-private partnerships.
This workshop marks the first of three consultation sessions. The Finance Division and UNDP will next convene key ministries, divisions, and agencies, followed by engagement with development partners and finance institutions. Insights from these sessions will be consolidated into a draft Climate Finance Strategy for further national consultation.
The strategy is expected to help Bangladesh mobilize larger, more predictable, and diversified climate finance, bridging global commitments made at COP30 with national efforts to protect people, livelihoods, and ecosystems.
