Turning climate risk data into budget decisions that protect people
From Vulnerability to Action: Why Bangladesh’s Climate Vulnerability Index (CVI) Is a Game-Changer
September 14, 2025
By A K M Azad Rahman
Bangladesh stands at the frontline of the global climate crisis. With rising seas, intensifying cyclones, and erratic rainfall patterns, the country has long been recognized as one of the most climate-vulnerable nations in the world. Yet, while the risks are well-documented, the tools to translate these risks into actionable, budget-linked decisions have remained limited—until now.
The Climate Vulnerability Index (CVI) is a breakthrough in this regard. Developed under the Local Government Initiative on Climate Change (LoGIC) project—a collaboration between the Government of Bangladesh, UNDP, UNCDF, and the governments of Sweden and Denmark—the CVI offers a quantitative, data-driven framework to assess climate vulnerability across regions and communities. It combines three critical dimensions: exposure to hazards, sensitivity of populations and ecosystems, and adaptive capacity to respond.
While Bangladesh has access to various climate risk models that project future scenarios based on global climate data, these models often fall short in one crucial area: they do not measure adaptive capacity on the ground, and are largely qualitative in nature. This gap has long hindered the ability of policymakers to make targeted, equitable, and evidence-based investments.
The CVI changes that. For the first time, Bangladesh has a quantified model that not only maps vulnerability but also guides public investment. In the fiscal year 2025–2026, a landmark BDT 1.6 billion has been allocated using CVI scores—marking a significant shift toward climate-sensitive budgeting.
This momentum was further reinforced on 7th September 2025, when the Local Government Division (LGD) hosted a high-level workshop titled “Vulnerability to Resilience: Integrating Climate Vulnerability Index beyond Local Governance”. The event brought together representatives from the Planning Commission, Ministry of Disaster Management, Ministry of Agriculture, and other key stakeholders. A central theme emerged: CVI must evolve into a dynamic, cross-ministerial tool to ensure a whole-of-government approach to climate resilience.
Participants emphasized that while the CVI has already been institutionalized at the Union Parishad level—where 30% of local budgets are now allocated based on CVI scores—its potential extends far beyond. Ministries responsible for infrastructure, agriculture, disaster response, and planning can all benefit from using CVI to prioritize investments, reduce climate risk, and enhance resilience.
However, for this to happen, ownership of the CVI must extend beyond the LGD. A national-level institutional framework is necessary to maintain, update, and mainstream the tool across sectors. This includes integrating CVI into national planning documents, budget guidelines, and monitoring systems. At the beginning of this innovative solution, we faced many struggles to help everyone understand how this can be used and how its methodology is so robust. But persistent advocacy made it possible and taught me a valuable lesson: change is not easy, but it is possible. What you need is consistency to make this happen.
In a world where climate finance is increasingly tied to measurable outcomes, I believe Bangladesh’s CVI offers a model for other vulnerable nations. It is not just a tool—it is a transformational approach to ensure that every taka spent contributes to a more resilient future.
Budgeting by need, not noise: CVI steered BDT 1.6 billion in FY 2025–26 to the most climate-exposed unions.