Bangladesh, UNDP move to strengthen climate finance system
DHAKA, October 7, 2026 — Bangladesh and the United Nations Development Programme (UNDP) have launched the second phase of a joint initiative aimed at improving the country's climate finance planning, tracking and allocation, particularly for climate-vulnerable communities.
The government and UNDP signed the Project Document for the Inclusive Budgeting and Financing for Climate Resilience (IBFCR II) project at the Economic Relations Division (ERD) in Dhaka on Wednesday.
The initiative, financed by the Agence Française de Développement (AFD), will be led by the Finance Division of the Ministry of Finance, with technical and implementation support from UNDP.
Md Shahriar Kader Siddiky, secretary of the ERD, Md Hasanul Matin, additional secretary of the Finance Division, and Stephen Rodriques, resident representative of UNDP Bangladesh, signed the agreement on behalf of their respective organisations.
The second phase builds on the first phase of IBFCR and seeks to strengthen climate-sensitive public financial management so that climate finance is planned, tracked and utilised more effectively.
“Climate vulnerability is placing increasing pressure on our development efforts,” Shahriar Kader Siddiky said at the signing ceremony.
“We need a clear understanding of our financing needs, existing gaps and how resources are being used. Stronger tracking, reliable data and better coordination will help us align climate finance with national priorities and direct more resources to vulnerable areas,” he said.
Under IBFCR II, Bangladesh will update its climate finance tracking methodology, strengthen the Climate Fiscal Framework and develop a National Climate Finance Strategy.
The project will also introduce climate budget geotagging and strengthen ex-ante climate budgeting and project appraisal.
These measures are expected to improve the government's ability to identify where climate finance is being allocated and assess whether resources are reaching areas and communities facing the greatest climate risks.
The initiative will work with key government institutions, including the Ministry of Planning, Office of the Comptroller and Auditor General, Bangladesh Bureau of Statistics and Local Government Division, as well as other ministries, divisions and agencies.
Training, technical assistance and improved digital tools will also be provided to government officials to strengthen the use of climate-related evidence in public planning and financial decisions.
UNDP Resident Representative Stephen Rodriques stressed that stronger financial management systems should ultimately benefit people living in areas most exposed to climate change.
“The needs of communities most affected by climate change must shape how we plan and spend public resources,” he said.
“By strengthening the Government’s capacity to plan, track and account for climate finance, we can help ensure that resources respond more effectively to local priorities and climate risks.”
The project will also generate stronger evidence on local climate finance and household spending related to climate shocks. Such information could help policymakers better assess the financial burden of climate change and determine where public resources are most urgently required.
A K M Sohel, additional secretary and wing chief of the UN Wing at the ERD, said Bangladesh had been tracking climate finance for several years, but methodological and institutional gaps remained.
“This second phase will broaden the approach, strengthen performance-based monitoring and reporting, and support the development of a Climate Finance Strategy for Bangladesh,” he said.
The government also emphasised the need to move quickly from signing the agreement to implementation.
“Today we are signing the Project Document. From tomorrow, we start implementation,” said Hasanul Matin of the Finance Division.
The project is scheduled to continue until December 2027.
For Bangladesh, one of the countries highly exposed to climate-related risks, improving the transparency, effectiveness and geographic targeting of climate finance is increasingly important as public resources face growing pressure from climate adaptation and resilience needs.
The signing ceremony was attended by officials from the government, UNDP, AFD and partner institutions, including Suman Kanti Nath, project manager at AFD; Sarder M Asaduzzaman, assistant resident representative of UNDP Bangladesh; Muhammad Abul Kasem, joint secretary of the Finance Division; Dr Kazi Shahjahan, joint secretary of the ERD; Sohel Ahmed, deputy secretary of the ERD; and Pranab Sarker, director (R&D) of the Office of the Comptroller and Auditor General.
