Bangladesh Bank (BB) and the United Nations Development Programme (UNDP) have signed a Memorandum of Understanding (MoU) at the BB office to advance climate-resilient financing. Report BSS
This partnership is designed to mitigate the substantial economic losses Bangladesh faces annually due to climate-induced disasters.
By embedding sustainable finance practices, the collaboration aims to bolster the nation's adaptation and climate mitigation strategies.
The MoU was signed yesterday by Chowdhury Liakat Ali, Director of the Sustainable Finance Department at Bangladesh Bank, and Stefan Liller, UNDP Bangladesh's Resident Representative, a UNDP press release said today.
Dr. Ahsan H. Mansur, Governor of Bangladesh Bank, Nurun Nahar, Deputy Governor, and UNDP representatives were present on the occasion.
Speaking at the event, Stefan Liller highlighted the significance of the partnership.
"This collaboration will support Bangladesh in building financial resilience. By working with Bangladesh Bank and other partners, we aim to integrate climate considerations into financial policies", he said.
"UNDP will also work alongside private banks and finance companies to enhance climate-related financial disclosure and help them identify the risks and opportunities associated with climate change," he added.
Chowdhury Liakat Ali highlighted key aspects of the agreement, noting, "Through this MoU, UNDP and Bangladesh Bank will jointly work on developing a climate damage function for financial assets, assessing the impact of climate-related physical risks using the Climate Vulnerability Index (CVI) methodology in targeted unions."
This partnership will focus on strengthening climate vulnerability modelling for enhanced financial planning, creating innovative financial instruments to promote climate resilience and supporting the financial sector in adopting global environmental, social, and governance (ESG) standards.
This collaboration will ensure Bangladesh is better equipped to face climate challenges and build a sustainable future.
