This funding supports the second phase of the Climate-Resilient Inclusive Development Program (CRIDP), which also includes nearly $113 million in cofinancing from the Agence Française de Développement and $400 million from the Asian Infrastructure Investment Bank (AIIB), according to a press release.
Under CRIDP, the Bangladesh Climate Development Partnership will be established to facilitate climate financing and assist government ministries in more effectively planning, executing, and evaluating climate-related projects.
The initiative will introduce a new framework aimed at scaling up local adaptation strategies, particularly those that are youth-led and gender-responsive. It also backs the development of a national disaster risk financing strategy, incorporating instruments such as crop insurance, disaster risk insurance, and contingent disaster financing.
Additionally, the program supports the revision of Dhaka’s Strategic Transport Masterplan (2025–2034) and the implementation monitoring of renewable energy components from the Integrated Energy and Power Master Plan, with the goal of promoting eco-friendly transport and cleaner energy.
Bangladesh is among the world’s most climate-vulnerable nations, the ADB noted. If high greenhouse gas emissions continue unchecked, studies suggest the country could lose up to a third of its GDP by 2070. Already, tropical cyclones cost about $1 billion annually—around 0.7% of GDP—and severe flooding could reduce expected economic growth by as much as 9% by 2050.
By mid-century, Bangladesh also risks losing 17% of its land and 30% of its food production, threatening national food and nutrition security.
The program seeks to overcome major challenges such as weak institutional coordination, limited climate finance, and low private sector involvement. Its core focus is on fostering a stronger enabling environment for climate action, enhancing resilience, and accelerating mitigation efforts.
ADB Senior Public Sector Economist Sameer Khatiwada said the initiative will better align government efforts with national policies, improve access to climate finance, support targeted adaptation in key sectors, and speed up efforts to curb climate-related risks.