Bangladesh has taken a significant step toward developing its first National Climate Finance Strategy, aimed at closing the gap between ambitious climate commitments and the financing required to protect vulnerable communities. Through nationwide consultations held between November and December 2025, led by the Finance Division with technical support from UNDP and financing from Agence Française de Développement, the country has begun laying the groundwork for a comprehensive roadmap to mobilize, manage and scale climate finance in a more coordinated manner.
As climate finance becomes increasingly integrated into Bangladesh’s public financial management systems, these consultations are expected to deepen that integration and unlock new sources of investment for climate resilience. Bangladesh is among the world’s most climate-vulnerable countries despite contributing less than one percent of global greenhouse gas emissions, facing frequent climate-induced disasters that affect agriculture, infrastructure and livelihoods. Annual climate finance needs are estimated to exceed USD 26 billion, particularly for adaptation and addressing loss and damage. While Bangladesh has adopted key policy frameworks such as the Climate Change Strategy and Action Plan, the National Adaptation Plan, updated Nationally Determined Contributions and Delta Plan 2100, a persistent mismatch between investment needs and available financing has highlighted the urgency of a dedicated climate finance strategy.
Discussions during the consultations underscored challenges and opportunities across sectors. Private sector stakeholders highlighted the absence of clear taxonomies, incentives and innovative financial instruments as barriers to scaling climate finance, while development partners emphasized the need for a country-owned framework to reduce fragmentation and improve access to international climate funds. Government representatives stressed the importance of strengthening climate-responsive budgeting, improving post-disaster fund disbursement and ensuring climate finance reaches vulnerable groups through inclusive social protection systems.
Moving forward, the Finance Division and UNDP will consolidate insights from the consultations to draft Bangladesh’s first National Climate Finance Strategy along with an operational plan. The draft will be shared with key stakeholders for validation, with the goal of embedding climate finance firmly within national systems and translating climate ambition into scaled-up, outcome-driven action that safeguards development gains and strengthens long-term resilience.
