[🇧🇩] Save the Rivers/Forests/Hills-----Save the Environment

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Bangladesh needs nearly $150bn in climate finance by 2050

Bangladesh requires approximately $146.81 billion as total climate finance until 2050, while the total adaptation finance needs will be $86.04 billion. On the other hand, $60.77 billion will be required to address the total mitigation needs (2021-2030), says a new report explaining Bangladesh&rsquo

thefinancialexpress.com.bd

Bangladesh needs nearly $150bn in climate finance by 2050

UNB
Published :
Dec 08, 2025 22:32
Updated :
Dec 09, 2025 01:42

Bangladesh requires approximately $146.81 billion as total climate finance until 2050, while the total adaptation finance needs will be $86.04 billion. On the other hand, $60.77 billion will be required to address the total mitigation needs (2021-2030), says a new report explaining Bangladesh’s climate finance requirements.

The report titled “Climate Finance Synthesis Report: Needs, Flows and Gaps in the HKH countries” was released by the International Centre for Integrated Mountain Development (ICIMOD).

The Hindu Kush Himalaya (HKH) region faces escalating climate risks, including glacial melt, biodiversity loss, and extreme weather events, posing severe threats to ecosystems, livelihoods, and the well-being of billions dependent on its resources.

Bangladesh has a substantial 59% funding gap, despite a high level of commitment, underscoring the significant need for increased disbursement rates, said the report seen by UNB.

Delivery on multilateral funding for adaptation and mitigation has fallen short, to less than 0.30% of the multilateral commitment.

Bangladesh received flows for energy, transport, and cross cutting sector 55%, 47%, and 61% respectively (with the gap of 45%, 39%, and 55%).

The bilateral has been better for Bangladesh in term of adaptation and mitigation, energy sector, transport, and cross cutting as it received 72%, 67%, 52% and 173% (with the average gap of 36%).

The fund flows on both cases (multilateral and bilateral) were channeled through a mix of instruments including ODA loans, ODA grants and non-export credits

This synthesis report by ICIMOD assessed climate finance needs, current financial flows, and gaps across HKH countries, highlighting significant funding shortfalls and uneven distribution.

The report estimated the HKH region requires approximately USD 12.065 trillion from 2020 to 2050 for climate mitigation and adaptation, amounting to an annual average of USD 768.68 billion.

China and India represent over 92.41% of these needs, while Nepal, Bhutan, Bangladesh, Afghanistan, Myanmar, and Pakistan face critical financing gaps relative to their GDPs, underscoring their heightened vulnerability (UNEP, 2023).

Globally, climate finance flows reached approximately USD 1.3 trillion annually in 2021/2022 (CPI, 2023), predominantly directed toward mitigation activities in developed and larger emerging economies.

In contrast, the HKH region receives significantly lower shares, with multilateral and bilateral climate finance frequently failing to meet committed levels.

Sectors crucial to the region, such as adaptation, agriculture, water management, and disaster risk reduction, remain significantly underfunded despite their critical importance.

Limited private sector engagement, insufficient institutional capacity, a fragmented policy landscape, and weak data infrastructure further compound these challenges.

To bridge these finance gaps, the report recommends enhancing regional and global advocacy for HKH-specific climate funding, strengthening national and regional climate finance strategies, improving policy coherence, and developing robust financial mechanisms and innovative market-based instruments.

Specific recommendations include: Building strong national institutional capacities and governance frameworks to manage and mobilize climate finance effectively; establishing an HKH Climate Finance Network to facilitate knowledge exchange, capacity building, and collaborative regional financing efforts; leveraging innovative financial instruments, such as green and blue bonds, debt-for-climate swaps, and voluntary carbon markets, tailored specifically for mountain economies; enhancing private sector engagement through improved enabling policies, incentives, and creation of bankable projects; improving data infrastructure, climate risk assessments, and reporting systems to attract investments and enhance accountability; urgent collective action and targeted financial investment in the HKH region are critical for building climate resilience, safeguarding ecosystems, and supporting sustainable development for current and future generations.

Recommendations for Bangladesh

Consolidate and Deepen Climate Budget and Reporting: Leverage further development on budget tagging, reporting, and transparency, e-tagging, audit-trailed MRV platforms, and integrated dashboards. Strengthen central mechanisms to pool domestic and external funds, standardize reporting, and tag budget ceilings and green procurement.

Mobilize Innovative Finance: Strengthen Bangladesh Climate Finance Facility to mobilise public, private, and international capital. Scale blended finance instruments, challenge funds, and thematic bonds to crowd in private investment.

Expand Private Investment: Provide concessional credit and incentives for industries to adopt low-carbon technologies. De-risk private investments in renewable energy, resilient agriculture, and coastal adaptation through public guarantees and risk-sharing mechanisms.

Harmonize Climate Finance: Operationalize the National Adaptation Investment Framework as the central coordination platform. Integrate carbon finance strategy to enable offsets and emission-reduction credits for garments, steel, energy, and other high-impact sectors.

Strengthen Climate Resilience: Channel resources to coastal and flood-prone regions, including embankment reinforcement, climate-resilient housing, salinity-resistant crops, and mangrove restoration. Develop carbon-linked agri-finance and insurance pools to protect farmers, households, and MSMEs.

Expand and Diversify Climate Finance Sources: Strengthen disaster risk reduction and local adaptive capacity by broadening instruments such as forecast-based financing, microinsurance, and community resilience grants.​

 

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Financing a green revolution in Bangladesh

A new-world order—one described by increasing numbers of economists as the climate economy—is arising. Rather than being fueled by smoke and coal, it will be propelled by clean energies, climate-resilient infrastructure, clean technologies, and sustainable finance. In reaction to global

thefinancialexpress.com.bd

Financing a green revolution in Bangladesh

Serajul I Bhuiyan
Published :
Dec 11, 2025 23:15
Updated :
Dec 12, 2025 00:07

A new-world order—one described by increasing numbers of economists as the climate economy—is arising. Rather than being fueled by smoke and coal, it will be propelled by clean energies, climate-resilient infrastructure, clean technologies, and sustainable finance. In reaction to global changes brought about by reduced-carbon manufacturing from developed and developing countries, trillions of dollars have started to be redirected towards such clean pursuits, opening up brand-new avenues for smart players.

The question posed to Bangladesh is direct yet difficult to define: shall we be reactive holders of climate disruption’s passport to their new planet? Shall we now instead stand tall as active builders of their cleaner, sharper, and strong economy?

Bangladesh Cannot Lag Behind:

At COP28, conducted in Dubai, leaders worldwide were united in their strong message to the world about transitioning from fossil fuels quickly, and this must be just and irreversible. The message did not just represent symbolic language. Rather, it signifies a global shift in economics, which stands to be the biggest seismic shift in global energy policy since the Industrial Revolution.

In Bangladesh’s case, it’s do or die. Experts have warned that 28 per cent of land in Bangladesh may be inundated due to sea-level rise by 2050. Climate change displacement of population from the coast to other areas in Bangladesh has already started. The loss to Bangladesh’s economy from climate change events every year can be estimated in terms of billions of dollars. The World Bank even warns about reduction in Bangladesh’s GDP by as much as 9 per cent by 2050 if it’s not properly managed.

However, actions on climate change do not solely serve environmental goals.

It is now “the most strategic economic decision of our time.”

Nations that pursue the climate economy will be driving forces in the global economy of the future. Nations that do not pursue it will be unable to recover. Bangladesh cannot be one of the latter.

COP28 Commitments: During COP28, Bangladesh reiterated four major elements of its commitments to be followed as part of its climate strategies.

Fast-Tracking Growth in Renewable Energy. Bangladesh committed to increasing the use of renewable sources to 40 per cent by 2041. Setting such goals is not only very ambitious but also imperative. Our overdependence on imports from global LNG sources and fossil fuels makes us vulnerable to fluctuations in global market prices and depletes our foreign exchange reserves; it simply isn’t sustainable for such a rapidly growing economy. The development of home-based solar power stations, large solar power stations, floating solar power stations on our reservoirs, and harnessing wind power from the Bay of Bengal can make such challenges less threatening to us.

Climate Change Adaptation & Loss & Damage Financing.

Bangladesh has always been a moral driving force in the global climate justice community. The loss and damage fund’s operationalisation at COP28 is one of the biggest triumphs for developing countries. Nevertheless, to be able to tap into these resources, developing countries must have strong institutions to ensure credibility in financial institutions and transparency in project pipeline development. Otherwise, we can lose precious financial assistance meant for the worst-hit nations like Bangladesh.

Carbon Market Involvement. Under commitments towards Article 6 of the Paris Agreement, Bangladesh is set to join global carbon trading markets soon. It definitely holds great promise if implemented properly and can usher in completely new sources of revenue. Regions like Asia and Africa have already raked in several hundred million dollars from carbon trading transactions involving high-quality carbon credits. Our own sources of renewable power generation, reforestation efforts, and methane reduction make us a potent player in this new market.

Private Sector Engagement. The government repeatedly stated that climate-resilient and smart growth cannot be accomplished just by public expenditure. The private sector must have a prime role to play here, not in lip service to CSR but in down-to-earth ESG investing. The global market starts favoring enterprises that make ESG considerations their integral part of business. In export-driven Bangladesh, it’s mandatory to make adjustments to survive in carbon-taxed global markets such as the EU. These commitments form a very sound blueprint. The challenge now would be to finance them.

The Growing Trend of Green Finance Instruments: The climate economy essentially constitutes a financial economy. Ambitious intentions would be mere words if they lacked financial backing. The positive part of this situation is that global green finance is rapidly witnessing historic growth. In 2023 alone, global issuance of sustainable bonds reached US$ 1.7 trillion. The carbon market is expected to reach US$ 250 billion by 2050. ESG assets would cross US$ 50 trillion by the end of this decade.

A role for Bangladesh must be carved out in this constantly changing global environment.

Climate Bonds. Climate bonds have proved to be one of the most potent financial instruments to finance large-scale climate change mitigation and adaptation efforts. The climate bonds invest finances solely in such initiatives as renewable power plants, climate-resilient roads, coast protection systems, recycling plants for waste materials, water purification plants, and transport systems.

Bangladesh has already started this by issuing guidelines for green bonds in Bangladesh Bank. However, it’s not large in scale to fulfill national requirements. Other nations such as Indonesia, India, and Chile have showcased their capabilities in aggressive climate bonds. Indonesia alone has succeeded in issuing over USD 1.25 billion of its sovereign green sukuk. India has tapped green bonds to the tune of US$ 6 billion to promote clean energy development. Chile, a pioneer internationally in climate finance, utilized green sovereign bonds to shift its energy structure.

Bangladesh can follow this tiered structure by issuing sovereign green bonds for resilience efforts, enabling large cities to issue municipal green bonds, and exploring corporate green bonds to be issued by industries to fund cleaner production lines and greener supply chains. If such initiatives occur with transparency and reliable data related to climate change, Bangladesh will be able to mobilise investment from global institutions to the tune of several billion dollars.

Carbon Credits. Carbon credits stand among the most promising yet not fully explored opportunities for Bangladesh. Carbon credits provide nations and organizations with avenues to earn money by saving emissions either via avoided deforestation, Solar Home Systems, Biogas Digester, Efficient Brick Kilns, Waste-to-Energy Plants, and Methane-Rich Rice Production techniques.

The potential in Bangladesh is broad. Projects such as the Sundarbans, one of the biggest mangrove forests in the world, have high blue carbon credits. Cook stove projects can cut emissions from households while improving public health. Municipal landfill methane digester projects can turn pure trash to profit.

To fully capitalise on such opportunities, Bangladesh must first construct their national carbon registry and build strong monitoring verification systems (MRV). They must also work in collaboration with worldwide carbon market experts to ensure development of high quality credits to sell to other countries. If such structures and capacity were in place, carbon credits would realistically be one of their greatest export commodities.

Renewable Energy Investments. Every year, it spends several billion dollars on imports of fossil fuels; this will be further threatened by global carbon taxes. Depending on renewable sources of energy must not only be a function of its environment; there must be security considerations.

The opportunities here are varied and promising. Solar power stations in northern districts, floating solar plants over Kaptai Lake, wind farms off the coast of Cox’s Bazar, and solar-powered irrigation systems for farmers can drastically change our energy scenario. Biogas plants can provide clean fuel to rural dwellers and minimize their dependence on wood and charcoal. Waste-to-energy solutions can stem the tide of wastage in cities and provide power to households.

The Bangladesh government will have to depend not only on public-private partnerships but also mobilise climate finance and encourage private investments following ESG criteria while increasing Green Micro Finance for rural households. Only then will renewable energy projects prove to be financially viable and resilient to risks.

ESG Integration and Profitability Alignment. The current global business environment faces a major shift where organisations failing to prove ESG compliance are losing their competitiveness in the market, while organizations embracing sustainability principles succeed.

The private sector in Bangladesh, especially export-oriented companies, must embed ESG considerations into their business strategies. Consumers in developed countries have become aware of the carbon footprint associated with their products. Investors provide cheaper capital to companies embracing sustainability. Regulatory bodies like the European Union have implemented penalties for carbon-intensive imports via the Carbon Border Adjustment Mechanism (CBAM).

For Bangladesh, this implies ESG considerations in business decisions aren’t ethical imperatives but business necessities.

The RMG industry has demonstrated what can be achieved. Today, Bangladesh has the maximum number of “green” factories in the global RMG industry. The country already possesses “LEED-certified factories” that not only use less power and water but also provide “higher quality” products. The “green” factories have ensured long-term contracts from buyers along with maximum “price premiums.” Changes like these need to happen in such industries as pharmaceuticals, agribusiness, steel, cement, shipyard, and food.

ESG and profitability aren’t necessarily synonymous. They’re becoming synonymous.

Investing in Climate-Smart Agriculture.

The agriculture sector in Bangladesh, whose performance ensures food security for the nation, faces extreme climate-related risks. Heat stress, salinity intrusion, fluctuating rainfall, pests, and rising water levels pose current risks to crops. The adoption of climate-resilient agriculture practices is thus very critical. This would encompass increasing awareness about salt-tolerant and drought-tolerant crops, expanding drip irrigation methods which essentially save water, implementing solar-powered cold storage to prevent post-harvest loss of foodstuffs, and increasing awareness about climate-resilient fishery systems which can sustain water salinity variations. The adoption of regenerative agriculture and vertical farming would provide key alternatives in densely populated cities.

Financing such a transition would need to be accomplished either by green microfinance services developed specifically to service farmers, additional agro-tech venture capital to finance innovations, climate-risk insurance to safeguard farmers from disasters, and public-private-partnership models used to fund rural renewable energy installations. A climate-resilient agri-value chain would be critical to food security.

Institutional Reforms: To effectively tap into green financing in Bangladesh, there must be some major institutional changes. The creation of Bangladesh Climate Finance Authority would help these institutions be controlled and coordinated from a central location by the government of Bangladesh. Enhancing climate change disclosure would ensure transparency in their carbon footprint management, their use of energy, water management systems, their treatment of wastes, and their governance structures.

The creation of a national green taxonomy would serve as a guide to ensure what constitutes a green investment, thus combating issues related to greenwashing. The development of human capital by creating training initiatives for climate analysts, carbon auditors, engineers, economists, and renewable energy technicians would ensure the human resource needed for implementing climate initiatives. The last area to be discussed would be to ensure greater promotion of green banking.

Green growth matters to Bangladesh. Green growth is not something fashionable in Western culture and brought to Bangladesh for adoption. Rather, it represents a source of survival for Bangladesh as far as economy is concerned. The country’s leaders in green expenditure will control worldwide trade in the coming tomorrow. The cost of failure to act will be increased export restrictions.

Bangladesh can be a powerhouse in solar and wind energy in South Asia. The Industries of Bangladesh can be global leaders in ‘Sustainable Manufacturing.’ The agriculture of Bangladesh can be ‘Agro-Ready to Extreme Climate Changes.’ The cities of Bangladesh can be ‘Smart & Livable.’ The economy of Bangladesh can be ‘eco-friendly and Thriving.’

The choices we make in this present era determine the fate of tomorrow’s generation.

A Call to Vision: Bangladesh has proven repeatedly that it can defy expectations whether through poverty reduction, rapid industrialization, women’s empowerment, or export success. The next frontier is green competitiveness. The tools exist. The capital exists. The ambition exists.

What remains is a collective commitment to green transformation is a recognition that the economic future of Bangladesh and the ecological future of Bangladesh are inseparable.

Green growth is not merely an agenda item. It is the only viable direction for our national development. It is our opportunity. It is our responsibility. It is our future.

Dr Serajul I Bhuiyan is a professor and former chair of journalism and mass communications at Savannah State University, Savannah, Georgia, USA.​

 

[Saif]

Can we harness faith to protect the environment?

While we cannot control tectonic plates, we are not helpless in the face of climate degradation.

www.thedailystar.net

Can we harness faith to protect the environment?

FILE ILLUSTRATION: ANWAR SOHEL

The recent tremors in Bangladesh have reminded us of an uncomfortable truth that we remain profoundly vulnerable to forces beyond human control. Although this time the quakes caused no significant destruction, they raised concerns about the potential for a more severe one with dire consequences. But a less dramatic, far more enduring threat continues to unfold around us: the accelerating deterioration of the environment.

Unlike an earthquake, which strikes suddenly and causes immediate damage, environmental deterioration unfolds gradually and attracts far less attention despite its lasting consequences. In a recent study titled "The Future Climate of Bangladesh," the Bangladesh Meteorological Department, together with the Norwegian Meteorological Institute, predicted that Bangladesh is likely to experience more intense heatwaves and heavier monsoon rainfall in the coming decades. The average temperature is projected to rise by 1-2 degrees Celsius by mid-century and by 1.5-4.5 degrees Celsius by 2100. Winter may nearly disappear, reduced to a brief cold spell lasting only a day or two in many parts of the country. Monsoon rainfall is expected to increase by up to 15 percent, particularly in the northern districts. These changes will intensify flooding and heat stress, posing serious threats across various sectors and further worsening pre-existing vulnerabilities. Agriculture, water resources, climate-sensitive livelihoods, public health, social well-being, and the broader economy are all at heightened risk. Combined with worsening air pollution, the environmental risks facing Bangladesh are undeniably alarming.

This vulnerability did not emerge in isolation. It is the cumulative outcome of countless economic, behavioural, and ethical choices, each carrying profound implications for a densely populated nation like ours. Beneath these choices lies an economic logic rooted in self-interest, as humans tend to prioritise short-term personal satisfaction even when such decisions jeopardise the future. Behavioural dynamics show that human beings naturally discount the future, favouring immediate gratification over long-term well-being. These impulses, resulting in irrational and excessive use of resources, have pushed the planet towards severe and, in some cases, irreversible environmental degradation. These tendencies are evident worldwide, and Bangladesh is no exception. We are now living with the consequences, yet these destructive behaviours continue.

In this moment of reckoning, Islamic economics offers an ethical lens that is profoundly relevant, especially for a Muslim-majority nation like Bangladesh. In this moral economy, doing good for others becomes a form of enlightened self-interest, as divine rewards are promised for acts of generosity. If properly channelled, this can transform social responsibility from a voluntary virtue into both a moral obligation and a practical pathway towards collective well-being. Islamic teachings also articulate a hierarchy of needs—necessities, complementary needs, and refinements—mirroring contemporary resource economics by urging societies to prioritise essential uses over extravagant or discretionary consumption. These values also resonate with modern sustainability principles, including responsible consumption, intergenerational equity, and environmental justice.

Together, these foundations form a coherent economic ethos that Bangladesh can embed in its development pathway. Encouragingly, several Muslim-majority nations are already demonstrating how Islamic finance can support environmental sustainability. Malaysia's Sustainable and Responsible Investment (SRI) Sukuk Framework directs investment towards projects aligned with the UN's Sustainable Development Goals (SDGs), including initiatives such as green building development, afforestation programmes, and low-carbon transportation systems. Its waqf-solar initiatives use dedicated waqf land for renewable energy generation, while Environmental, Social and Governance (ESG) principles are increasingly incorporated into halal certification.

Oman is harnessing waqf resources to install solar systems that help mosques operate as energy-efficient buildings. Indonesia has pioneered green sukuk to fund renewable energy, watershed protection, and overall infrastructure requirements for climate adaptation. Its Eco-Mosque programme promotes solar power and sustainable waste management systems. In fact, the Indonesian Ulema Council has issued a fatwa declaring any human activity that degrades natural ecosystems or worsens the climate crisis as haram (prohibited). Across the UAE, anti-food-waste campaigns draw directly on Quranic guidance, while Jordan and Saudi Arabia have revived the traditional "hima" system for nature conservation. Moroccan mosques promote water conservation and environmentally responsible practices, using their religious influence to shape social norms. Zakat institutions in several countries now regularly allocate funds for climate adaptation and disaster resilience. These examples demonstrate that Islamic values can be effectively translated into policy, community action, and financial innovation, providing a coherent framework for sustainability grounded in faith.

While we cannot control tectonic plates, we are not helpless in the face of climate degradation. A renewed awakening to religion-guided ethical values among devotees can help reshape economic behaviour in ways that protect both society and the environment. Such an approach offers a credible pathway towards sustainability for present and future generations. That said, no system, Islamic or otherwise, can succeed without collective commitment. With greater awareness, shared responsibility, and positive social encouragement, our collective willingness to act can become a powerful force for meaningful change.

Mezbah Uddin Ahmed is a research fellow at the ISRA Institute of INCEIF University in Malaysia.

NM Baki Billah is a PhD researcher at the School of Business and Economics, Universiti Putra Malaysia.​