IFC, Danida join hands to boost climate-smart investments in Bangladesh
The IFC-DANIDA partnership, backed by $5.3 million, aims to catalyse $50 million in climate-smart private investments by 2027
The International Finance Corporation (IFC) and the Danish International Development Agency (Danida) have entered into a transformative agreement to establish the Bangladesh Climate Advisory Partnership (B-CAP).
The initiative aims to enhance private investment in the country's key growth sectors, contributing to carbon mitigation and reducing greenhouse gas emissions.
Climate change poses significant risks to Bangladesh's development, requiring substantial investments in mitigation and adaptation. The IFC-DANIDA partnership, backed by $5.3 million, aims to catalyse $50 million in climate-smart private investments by 2027, with a focus on manufacturing and green finance, reads a press release today (25 June).
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The core goals of B-CAP include accelerating climate-smart investments, enhancing green finance, promoting sustainable practices, and ensuring gender inclusiveness. Aligned with IFC's strategic climate objectives, this project aims to accelerate an inclusive transition to low-carbon, resilient growth focused on people, jobs, and sustained industrial progress in Bangladesh.
"By catalysing climate-smart private investments in Bangladesh, we're tackling climate change while fostering resilient, eco-friendly development," said Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan and Nepal.
"Teaming up with Danida allows us to pool expertise and resources, ensuring our projects uphold the highest environmental and social standards, supporting Bangladesh's development journey."
Building on the successful Partnership for Cleaner Textile (PaCT) program, which provided advisory support for a green transition in Bangladesh's textile industry, B-CAP expands this collaboration to broader climate advisory.
Christian Brix Møller, ambassador of Denmark to Bangladesh, said, "This collaboration with IFC is a significant step towards advancing our global climate action goals. By investing in Bangladesh's transition to a green economy, we are reinforcing our commitment to sustainable development and international cooperation."
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets and Danida is Denmark's development cooperation initiative under the Ministry of Foreign Affairs. It is dedicated to combating global poverty by promoting human rights and fostering economic growth.
