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The International Finance Corporation (IFC) and the Danish International Development Agency (DANIDA) have entered into a transformative agreement to establish the Bangladesh Climate Advisory Partnership (B-CAP).
The IFC-DANIDA partnership, backed by $5.3 million, aims to catalyse $50 million in climate-smart private investments by 2027, focusing on manufacturing and green finance, reads a statement issued on Tuesday.
This initiative aims to boost climate-smart investments in the country's key growth sectors, contributing to carbon mitigation and the reduction of greenhouse gas emissions.
Climate change poses significant risks to Bangladesh's development, requiring substantial investments in mitigation and adaptation.
B-CAP's core pillars include accelerating climate-smart investments, enhancing green finance, promoting sustainable practices and gender inclusiveness.
Aligned with the IFC's strategic climate objectives, the project aims to accelerate an inclusive transition to low-carbon and resilient growth focused on people, jobs and sustained industrial progress here.
"By catalysing climate-smart private investments in Bangladesh, we're tackling climate change while fostering resilient, eco-friendly development," said Martin Holtmann, IFC country manager for Bangladesh, Bhutan and Nepal.
"Teaming up with the DANIDA allows us to pool expertise and resources, ensuring our projects uphold the highest environmental and social standards, supporting Bangladesh's development journey."
Building on the successful 'Partnership for Cleaner Textile (PaCT)' programme, which provided advisory support for a green transition in Bangladesh's textile industry, B-CAP expands this collaboration to broader climate advisory.
Christian Brix Møller, Danish ambassador to Dhaka, said, "This collaboration with the IFC is a significant step towards advancing our global climate action goals."
"By investing in Bangladesh's transition to a green economy, we're reinforcing our commitment to sustainable development and international cooperation."