Driving Resilience and Low-Carbon Growth:The Green Climate Fund (GCF) is one of the largest international funding mechanisms designed to assist developing countries in their climate mitigation and adaptation efforts. GCF supports the transition to low-carbon economies and strengthens resilience to climate change. Bangladesh has utilized GCF resources for projects focusing on renewable energy, disaster risk management, and sustainable agriculture, areas highly vulnerable to climate change.
Bangladesh accesses GCF funds through national entities like the Bangladesh Climate Change Trust Fund (BCCTF) and the Ministry of Environment, Forest and Climate Change (MoEFCC). The GCF offers grants and concessional loans based on the project’s nature. Proposals must align with Bangladesh’s Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAP), undergoing a review process for technical, environmental, and financial feasibility.
Supporting Sustainable Development:The Global Environment Facility (GEF) is another essential funding source for projects advancing environmental sustainability and climate resilience. GEF funds initiatives in biodiversity conservation, land degradation, and climate change mitigation. Bangladesh has previously accessed GEF funds for environmental conservation, ecosystem restoration, and strengthening climate resilience, efforts vital for combating the adverse effects of climate change.
Bangladesh collaborates with national and regional implementing agencies such as MoEFCC or UNDP to secure GEF funding. The application process requires aligning proposals with the country’s sustainable development goals and climate action plans, ensuring their technical, environmental, and financial feasibility.
Empowering Vulnerable Communities:The Adaptation Fund plays a pivotal role in providing funding for urgent climate adaptation needs, especially for Bangladesh’s most vulnerable communities. This fund supports projects addressing immediate challenges posed by climate change, such as flooding, cyclones, and droughts. Bangladesh has used Adaptation Fund resources for projects in water management, agriculture, and coastal protection, critical sectors requiring intervention to protect communities.
Bangladesh collaborates with Direct Access Entities (DAEs) like BCCTF or international organizations like the World Bank to access the Adaptation Fund. The application process begins with a concept note, followed by the development of a detailed project proposal. Once approved, funds are disbursed to implement projects that reduce vulnerability and build adaptive capacity at the community level.
Promoting Low-Carbon Growth: The Climate Investment Funds (CIF) support countries transitioning to low-carbon economies while enhancing climate resilience.
Bangladesh can access CIF financing through development partners like the World Bank or the Asian Development Bank (ADB). Proposals must align with national climate strategies and NDCs, demonstrating long-term sustainability and climate resilience. Upon approval, funds are used for projects that contribute to both mitigation and adaptation goals.
Supporting Urgent Adaptation: As a Least Developed Country (LDC), Bangladesh is eligible for funding from the Least Developed Countries Fund (LDCF). The LDCF finances projects focusing on increasing the adaptive capacity of vulnerable populations in sectors like agriculture, water resources, and infrastructure.
Bangladesh applies for LDCF funding through MoEFCC or with international organizations like UNDP. The application process begins by identifying priority adaptation needs and submitting a concept note. After approval, a detailed proposal is developed for further review. Upon approval, the LDCF finances critical adaptation measures in Bangladesh’s most vulnerable regions.
Promoting Adaptation and Mitigation: Germany’s International Climate Initiative (IKI) provides crucial financing for projects focusing on both climate change mitigation and adaptation, as well as biodiversity conservation. Bangladesh has accessed IKI funding for initiatives in climate adaptation, ecosystem restoration, and forest conservation.
To access IKI funds, Bangladesh partners with German organizations or international agencies like UNDP or WWF. The application process involves developing joint proposals for projects related to renewable energy, climate adaptation, and biodiversity protection. Approved funds are used to implement projects that contribute to climate resilience and environmental sustainability.
Supporting Domestic Action: Bangladesh also has access to domestic funding through the Bangladesh Climate Change Trust Fund (BCCTF), dedicated to supporting climate resilience projects within the country. The BCCTF finances initiatives in water management, disaster resilience, and ecosystem protection, focusing on areas that align with Bangladesh’s climate adaptation and mitigation needs.
Managed by MoEFCC, the BCCTF application process requires submitting proposals that align with national climate action plans and priorities. Proposals are assessed for technical feasibility and alignment with national policies. Once approved, the BCCTF allocates resources to implement the projects, contributing to the country’s climate action efforts.
An innovative initiative led by AKM Sohel, Additional Director of the Economic Relations Division (ERD) of the Planning Commission, is further strengthening Bangladesh’s capacity to manage climate finance. In partnership with UN agencies, the initiative aims to create a multi-sectoral platform for knowledge-sharing through a hybrid training program. This program involves professionals from government, academia, NGOs, and private organizations, enhancing expertise in financial analysis and climate finance investment instruments. By improving climate finance literacy, the initiative will enable Bangladesh to better manage climate funds and position the country as a leader in climate resilience.
The writer is aTechnical Specialist & Research Adviser, Krishi Gobeshona Foundation