IFAD to co-finance $51.4m in climate-resilient projects in Bangladesh
The Executive Board of the International Fund for Agricultural Development (IFAD) has approved $51.4 million in financing for Bangladesh as part of a $211.7 million climate-resilient development initiative.
The 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, IFAD said on Saturday.
The approval was granted during IFAD’s 146th Executive Board session, held on December 9–10.
The Growth for Climate-Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project will be implemented over six years, from 2026 to 2031, across the Haor wetlands, Coastal Belt, High Barind, and River Char regions.
The project will support smallholder farmers, rural microenterprises, and young entrepreneurs to strengthen their adaptive capacity to climate change, diversify livelihoods, and develop sustainable rural businesses.
The GREEN 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, 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, and our close collaboration with PKSF, to enhance rural livelihoods through inclusive, climate-aware financing and environmentally responsible growth,” said Valantine Achancho, IFAD Country Director for Bangladesh.
“This initiative represents a new generation of investment linking climate adaptation, agroecological practices, and market-responsive rural enterprises, creating pathways for rural communities to prosper while safeguarding their ecosystems,” she added.
The project will scale up climate-smart practices across crops, livestock, and fisheries, introducing renewable energy solutions, efficient water-use technologies, organic farming methods, and small-scale processing to boost productivity, conserve natural resources, and promote healthier and more diverse diets.
Through PKSF’s nationwide network, GREEN will expand access to affordable, climate-informed financial services for women, youth, and microenterprises, enabling small producers to adopt sustainable technologies, strengthen value chains, and create rural jobs.
The project will also strengthen institutional capacity and policy engagement. Working closely with the Ministry of Finance and the Ministry of Environment, Forest and Climate Change, it 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, GREEN will contribute directly to the government’s Eighth Five-Year Plan, National Adaptation Plan, Nationally Determined Contributions, and Delta Plan 2100, while advancing progress toward key Sustainable Development Goals, including No Poverty, Zero Hunger, Gender Equality, Reduced Inequalities, and Climate Action.
The investment is part of IFAD’s broader commitment to supporting climate-resilient food systems and inclusive rural economies across the Asia-Pacific region, helping vulnerable communities better withstand future shocks and seize emerging opportunities.