OBJECTIVE
To help the Government of Bangladesh (GoB) implement critical policy and institutional reforms to mainstream climate change adaptation and mitigation actions for a sustainable, resilient and inclusive growth of Bangladesh.
DESCRIPTION
The proposed Program will support the GoB in undertaking key policy and institutional reforms to mainstream climate adaptation, mitigation, and disaster resilience in climate-critical sectors and unlock climate investments in Bangladesh. The Program supports implementation of the GoB-led national climate objectives as articulated in the National Adaptation Plan (NAP), 2023–2050 and the Nationally Determined Contributions 2021 Update (NDC-U) by strengthening the intergovernmental policy and institutional framework, mobilizing climate finance, and mainstreaming gender equality and social inclusion. The Program includes the following reform areas: (i) enhancing the enabling environment for climate change actions; (ii) reinforcing climate change adaptation actions; and (iii) accelerating climate change mitigation actions. The Program focuses on immediate policy actions in each reform area and aligns with the short-term priorities of NAP and NDC-U in climate-critical sectors including agriculture, water resources, urban, transport, and energy.
ENVIRONMENTAL AND SOCIAL INFORMATION
Environmental and Social Policy. The Program will be co-financed with ADB as the lead co-financier, and therefore, the Program’s Environmental and Social (E&S) risks and impacts have been assessed in accordance with ADB’s Safeguards Policy Statement (SPS) applicable to PBF. To ensure a harmonized approach to addressing the E&S risks and impacts of the Program, the ADB’s SPS will apply to the Program in lieu of AIIB’s ESP. AIIB has reviewed the ADB’s SPS and is satisfied that: (i) they are consistent with the Bank’s Articles of Agreement and materially consistent with AIIB’s ESP, including the Environmental and Social Exclusion List and relevant Environmental and Social Standards; and (ii) the monitoring procedures that are in place to are appropriate for the Program.
E&S Categorization and Risks. Based on the E&S assessments carried out according to the SPS requirements, ADB has categorized the Program as B for Environment, C for Involuntary Resettlement and C for Indigenous Peoples, which are equivalent to Category B of AIIB’s ESP. The Program focuses on policy and institutional reforms that do not entail involuntary resettlement or impact the lives of indigenous peoples. The downstream investment activities of some policy actions may lead to some adverse impacts that are anticipated to be indirect, short term, and reversible, and can be successfully managed using good practice. An E&S impact assessment matrix has been developed. The ADB TA will incorporate the E&S safeguards provisions and inclusive consultation and build capacity of client to ensure compliance with the SPS’s and country’s legal framework.
Gender Aspect. Promoting climate resiliency in the agriculture sector along with GHG mitigation measures would improve the lives, livelihoods, and food security of vulnerability community including women. The Program is classified as effective gender mainstreaming, and the policies adopted will enhance women’s participation and support women’s adaptive capacity. The progress of the gender-related policy actions will be monitored by the steering committee appointed by the Ministry of Finance.
Governance and Anti-corruption. AIIB’s Policy on Prohibited Practices applies to the Program. The Bank reserves the right to investigate, directly or indirectly through its agents, any alleged corrupt, fraudulent, collusive, coercive or obstructive practices, and misuse of resources and theft relating to the Program.
Monitoring and Reporting Arrangement. The Finance Division of the MoF, as the executing agency of the Program, will report to AIIB and ADB the implementation progress of the Program based on agreed format with AIIB and ADB. AIIB and ADB will jointly and respectively as agreed conduct Program monitoring semi-annually.