LocationsFinancing the Future: Bangladesh Bank and UNDP Tackle Climate Risks
December 13, 2024
Bangladesh Bank and UNDP formalize a landmark partnership to advance climate-resilient financing, paving the way for sustainable and inclusive development.
Dhaka, December 10, 2024 – Bangladesh Bank and the United Nations Development Programme (UNDP) have signed a Memorandum of Understanding (MoU) to advance climate-resilient financing. The signing ceremony took place on December 9, 2024, at the Bangladesh Bank office in Dhaka.
Bangladesh faces recurring economic challenges from climate-induced disasters. This partnership focuses on integrating sustainable finance practices to strengthen the country’s resilience and support its efforts toward effective adaptation and climate mitigation.
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. The event was attended by Dr. Ahsan H. Mansur, Governor of Bangladesh Bank, Nurun Nahar, Deputy Governor, and other representatives from UNDP.
Bangladesh Bank and UNDP Representatives at the Signing of the MoU for Climate-Resilient Financing, Dhaka, December 9, 2024
Key Focus Areas of the Partnership
The initiative prioritizes strengthening climate risk modeling through the Climate Vulnerability Index (CVI), developing innovative financial tools for resilience, and advancing the adoption of global ESG standards to integrate sustainability into Bangladesh’s financial systems.
Speaking at the event, Stefan Liller remarked, “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. UNDP will also work alongside private banks and finance companies to enhance climate-related financial disclosure and help them identify risks and opportunities associated with climate change.”
Chowdhury Liakat Ali added, “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 CVI methodology in targeted unions.”
This collaboration benefits from the support of the Climate Finance Network (CFN), funded by the UK Foreign, Commonwealth & Development Office (FCDO) and the Swedish International Development Cooperation Agency (Sida), which has provided strategic assistance in addressing barriers to climate finance and advancing sustainable financial planning in Bangladesh.
For more updates on this partnership and related initiatives, visit UNDP Bangladesh’s website.