This partnership will focus on strengthening climate vulnerability modelling for enhanced financial planning, creating innovative financial instruments to promote climate resilience and supporting the financial sector in adopting global environmental, social, and governance standards.
Bangladesh Bank and the United Nations Development Programme (UNDP) signed a Memorandum of Understanding (MoU) on Monday to strengthen climate-resilient financing frameworks in Bangladesh. The agreement underscores a shared commitment to address the economic impacts of climate change through sustainable financing and effective resource management.
The collaboration seeks to integrate climate-focused policies into financial systems, aligning them with Bangladesh’s Climate Fiscal Framework (CFF). The initiative emphasises transparency, accountability, and capacity building to maximise the mobilisation and utilisation of both domestic and international climate funds. This comprehensive approach aims to safeguard the nation’s economic and environmental stability.
MoU aimed at bolstering climate-resilient financing to address the challenges posed by climate change in Bangladesh. This collaboration will facilitate sustainable economic solutions, enhance financial systems, and integrate climate considerations into public financial management. By promoting transparency and building capacity, the initiative seeks to mobilise both domestic and international funds for climate adaptation and mitigation. It aligns with the national Climate Fiscal Framework to ensure effective use of resources for combating climate vulnerabilities
By embedding sustainable finance practices, the collaboration aims to bolster the nation’s adaptation and climate mitigation strategies.
Private Banks and Finance Companies
The MoU was signed by Chowdhury Liakat Ali, Director of the Sustainable Finance Department at Bangladesh Bank, and Stefan Liller, UNDP Bangladesh’s Resident Representative, a UNDP press release said.
Dr. Ahsan H. Mansur, Governor of Bangladesh Bank, Nurun Nahar, Deputy Governor, and UNDP representatives were present on the occasion.
Speaking at the event, Stefan Liller highlighted the significance of the partnership.
“This collaboration will support Bangladesh in building financial resilience. By working with Bangladesh Bank and other partners, we aim to integrate climate considerations into financial policies”, he said.
“UNDP will also work alongside private banks and finance companies to enhance climate-related financial disclosure and help them identify the risks and opportunities associated with climate change,” he added.
Chowdhury Liakat Ali highlighted key aspects of the agreement, noting, “Through this MoU, UNDP and Bangladesh Bank will jointly work on developing a climate damage function for financial assets, assessing the impact of climate-related physical risks using the Climate Vulnerability Index (CVI) methodology in targeted unions.”
This partnership will focus on strengthening climate vulnerability modelling for enhanced financial planning, creating innovative financial instruments to promote climate resilience and supporting the financial sector in adopting global environmental, social, and governance (ESG) standards. This collaboration will ensure Bangladesh is better equipped to face climate challenges and build a sustainable future.
