Bangladesh Bank and UNDP partner for climate-resilient financing
Bangladesh Bank and the United Nations Development Programme (UNDP) signed a Memorandum of Understanding (MoU) on December 09, 2024, at the Bangladesh Bank office to advance climate-resilient financing.
This partnership is designed to mitigate Bangladesh's substantial economic losses annually due to climate-induced disasters. The collaboration aims to bolster the nation's adaptation and climate mitigation strategies by embedding sustainable finance practices.
The MoU was signed by Chowdhury Liakat Ali, Director of Bangladesh Bank's Sustainable Finance Department, and Stefan Liller, UNDP Bangladesh's Resident Representative, in the presence of Dr. Ahsan H. Mansur, Governor of Bangladesh Bank, Nurun Nahar, Deputy Governor, and UNDP representatives.
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Speaking at the event, Stefan Liller highlighted the significance of the partnership. "This collaboration will support Bangladesh in building financial resilience. We aim to integrate climate considerations into financial policies by working with Bangladesh Bank and other partners. 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 said.
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.
