Govt's new strategy to prevent $1 billion in losses annually from climate change

The government of Bangladesh has launched a new strategy to combat the severe impacts of climate change, which causes approximately $1 billion in losses annually. 

The second phase of the Inclusive Budgeting and Financing for Climate Resilience (IBFCR-2) programme was introduced at the Finance Department of the Ministry of Finance at the Secretariat on Tuesday, aiming to strengthen the country’s resilience against climate risks. 

According to a press release from the Finance Department, this initiative addresses the significant economic and environmental challenges posed by global warming, which is projected to reach a record 1.55 degrees Celsius in 2024. 

Despite Bangladesh contributing only 0.56 percent to global greenhouse gas emissions, the country faces disproportionate consequences, including a 0.7 percent annual GDP loss due to cyclones and an anticipated 18 percent decline in agricultural production in the southern region by 2040. 

The World Bank estimates that by 2050, 13.3 million Bangladeshis may be displaced due to climate change-related migration.

Supported by the Finance Department, the United Nations Development Program (UNDP), and the French Development Agency (AFD), IBFCR-2 seeks to address an annual GDP gap of about 3 percent, equivalent to $12.5 billion. 

The programme was inaugurated by Dr. Khairuzzaman Majumder, Secretary of the Finance Department, with Bilkis Jahan Rimi, Additional Secretary, presiding. 

UNDP Resident Representative Stefan Liller and AFD Deputy Country Director Cecilia Cortese attended as special guests. 

Nazrul Islam, Joint Secretary, delivered the welcome speech, and Muhammad Abul Kashem, also a Joint Secretary, proposed the vote of thanks.

Dr. Khairuzzaman emphasised that, despite Bangladesh’s minimal contribution to global warming, it suffers significantly from its impacts, underscoring the government’s commitment to adaptation and remedial actions. 

He expressed confidence that IBFCR-2 will bolster resilience for both the population and the economy. 

Bilkis Jahan Rimi highlighted the need for a robust framework to enhance coordination among ministries and stakeholders, noting that strengthened institutional capacity could fully integrate climate priorities into the public finance system. 

Stefan Liller stated that IBFCR-2 prioritises climate considerations within public finance, ensuring that every taka spent makes a tangible difference in people’s lives, especially as climate change already affects livelihoods in Bangladesh. 

Cecilia Cortese noted that IBFCR-2 is a technical assistance programme that complements a 300 million euro policy-based lending programme, supporting the implementation of Bangladesh’s climate strategy and plans.