$211.7m green project: IFAD approves $51.4m co-financing

The Executive Board of the International Fund for Agricultural Development (IFAD), at its 146th session held on December 9–10, 2025, has approved US$51.4 million in financing for Bangladesh as part of a US$211.7 million development project, a spokesman said on Saturday.

The new investment aims to enhance climate resilience, strengthen food security and promote rural entrepreneurship for around 1.1 million people living in some of the country’s most climate-vulnerable regions.

The Growth for Climate Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project will be implemented over six years, from 2026 to 2031, covering the Haor wetlands, Coastal Belt, High Barind and river char areas. By supporting smallholder farmers, rural microenterprises and young entrepreneurs, the project seeks to build adaptive capacity to climate change, promote diversified and resilient livelihoods, and accelerate the development of sustainable rural enterprises.

The project will be executed by the Financial Institutions Division of the Ministry of Finance and implemented by Palli Karma Sahayak Foundation (PKSF). Strategic oversight will be provided by a national steering committee comprising the Finance Division, the Economic Relations Division and PKSF, ensuring strong governance and alignment with national priorities.

“The GREEN project builds on the long-standing partnership between IFAD and the Government of Bangladesh, as well as our close collaboration with PKSF, to enhance rural livelihoods and expand income opportunities for small producers through inclusive, climate-aware financing and environmentally responsible growth,” said Valentine Achancho, IFAD country director for Bangladesh. “This initiative represents a new generation of investment that links climate adaptation, agroecological practices and market-responsive rural enterprises, enabling rural communities to prosper while safeguarding their ecosystems,” he added.

The project will scale up climate-smart practices across crops, livestock and fisheries by introducing renewable energy solutions, efficient water-use technologies, organic farming methods and small-scale processing to raise productivity, conserve natural resources and support healthier, more diverse diets.

Through PKSF’s nationwide network, GREEN will expand access to affordable, climate-informed financial services for women, youth and microenterprises, helping small producers adopt sustainable technologies, strengthen value chains and create rural employment.

GREEN will also strengthen institutional capacity and deepen policy engagement. In collaboration with the Ministry of Finance and the Ministry of Environment, Forest and Climate Change, the project will support the integration of climate adaptation, nutrition and gender equality into rural finance and development planning.

By linking climate action with entrepreneurship and inclusive finance, the project will contribute directly to the government’s Eighth Five-Year Plan, National Adaptation Plan, Nationally Determined Contributions and Delta Plan 2100, while advancing progress towards the Sustainable Development Goals, particularly No Poverty, Zero Hunger, Gender Equality, Reduced Inequalities and Climate Action.

The investment forms part of IFAD’s broader commitment to supporting countries across the Asia-Pacific region in building climate-resilient food systems and inclusive rural economies, ensuring vulnerable communities are better equipped to withstand future shocks and seize emerging opportunities.