Dhaka, Dec 10, (V7N) – Bangladesh Bank (BB) and the United Nations Development Programme (UNDP) have signed a Memorandum of Understanding (MoU) to strengthen climate-resilient financing in Bangladesh. The partnership, formalized at the BB office, aims to address the nation’s vulnerabilities to climate-induced economic losses by embedding sustainable financial practices into national and sectoral strategies.

Strategic Collaboration for Climate Resilience

The agreement was signed by Chowdhury Liakat Ali, Director of the Sustainable Finance Department at BB, and Stefan Liller, UNDP Bangladesh's Resident Representative. The signing ceremony was attended by Bangladesh Bank Governor Dr. Ahsan H. Mansur, Deputy Governor Nurun Nahar, and other UNDP representatives.

Key Goals and Initiatives

The partnership focuses on:

Climate Vulnerability Modelling: Developing advanced climate vulnerability assessments using the Climate Vulnerability Index (CVI) methodology in targeted regions.

Financial Innovation: Introducing financial instruments to enhance climate resilience and adaptation strategies.

Global Standards: Supporting the financial sector in adopting international environmental, social, and governance (ESG) standards.

Risk Assessment: Creating a climate damage function for financial assets to evaluate the physical risks posed by climate change.

Building Financial Resilience

Stefan Liller emphasized the importance of integrating climate considerations into financial systems, noting, "This collaboration will support Bangladesh in building financial resilience. By working with Bangladesh Bank and private financial entities, we aim to enhance climate-related financial disclosure and help identify the risks and opportunities associated with climate change."

Chowdhury Liakat Ali added that the initiative is a critical step toward fortifying financial planning against climate vulnerabilities, paving the way for sustainable development.

Path to Sustainability

Bangladesh, highly vulnerable to climate-induced disasters, faces significant economic impacts annually due to floods, cyclones, and rising sea levels. This partnership represents a proactive approach to mitigating these risks, ensuring that the financial sector plays a central role in the nation’s adaptation efforts.

By fostering innovation and adopting best practices, the collaboration between BB and UNDP is poised to strengthen Bangladesh’s capacity to navigate the challenges of climate change while building a resilient and sustainable economic future.

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