IFC and DANIDA Launch Bangladesh Climate Advisory Partnership to Boost Climate-Smart Investments

Climate change poses significant challenges to Bangladesh's development, necessitating considerable investments in both mitigation and adaptation strategies.

The International Finance Corporation (IFC) and the Danish International Development Agency (DANIDA) have formed a landmark partnership to establish the Bangladesh Climate Advisory Partnership (B-CAP). This initiative aims to stimulate climate-smart private investment in key growth sectors of Bangladesh, aiding in carbon mitigation and the reduction of greenhouse gas emissions.

Climate change poses significant challenges to Bangladesh's development, necessitating considerable investments in both mitigation and adaptation strategies. The IFC-DANIDA partnership, supported by $5.3 million, seeks to catalyze $50 million in climate-smart private investments by 2027, focusing on manufacturing and green finance. B-CAP's core pillars include accelerating climate-smart investments, enhancing green finance, promoting sustainable practices, and ensuring gender inclusiveness.

Aligned with IFC's strategic climate objectives, this project is designed to accelerate an inclusive transition to low-carbon, resilient growth, emphasizing people, jobs, and sustained industrial progress in Bangladesh.

"By catalyzing 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.

H.E. Christian Brix Møller, Ambassador of Denmark to Bangladesh, commented, "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."

This partnership between IFC and DANIDA represents a significant commitment to addressing climate change through private sector engagement, fostering sustainable development, and enhancing resilience in Bangladesh.