Despite significant gains in reducing human toll from climate disasters, Bangladesh continues to face severe and growing climate risks. Without immediate action, including further adaptation and resilience measures, the country’s strong growth potential could be put at risk, according to the World Bank’s Country and Climate Development Report for Bangladesh which was released today.
The report outlines the priority actions and financing needed to help Bangladesh address the climate crisis. It recognizes Bangladesh’s successful experience in locally-led climate adaptation and recommends investments in infrastructure and services to strengthen climate resilience while supporting long-term growth. Actions focused on improved agricultural productivity, energy and transportation efficiency can lower future emissions while improving air, soil, and water quality.
The report estimates that Bangladesh could raise up to $12.5 billion in additional funding in the medium-term for climate action. Financing options include budget prioritization, carbon taxation, external financing, and private investment.
Climate change will hit poor and vulnerable people the hardest. Average tropical cyclones cost Bangladesh about $1 billion annually. By 2050, a third of agricultural GDP could disappear and 13 million people would become internal climate migrants. In the case of a severe flood, GDP can fall by up to 9 percent.
“Bangladesh is a leader in disaster risk adaptation and management. In the last 50 years, there has been a 100-fold reduction in cyclone-related deaths. Other countries can learn from this,” SAYS Martin Raiser, World Bank Vice President for South Asia. “But with climate risks ever-increasing, increased adaptation efforts are essential, and a low-carbon development path is essential to a sustainable future for Bangladesh.“
At just 0.4 percent, Bangladesh’s current contribution to global greenhouse gas (GHG) emissions is negligible. But due to its large population and rapid economic development, if the country follows the ‘business-as-usual’ development pathway, GHG emissions will increase significantly. Bangladesh also faces high levels of air pollution, which costs about 9 percent of GDP annually. Improved air quality standards in many sectors will improve health and increase climate resilience. The country’s 2021 Nationally Determined Contributions (NDCs) commit to reducing emissions by 21.8 percent by 2030. With strong implementation, technology development and utilization, and regional collaboration, Bangladesh can exceed these targets. commitment
“In the face of many serious risks from climate change, Bangladesh urgently needs to encourage more private sector participation not only to provide the billions of dollars needed for action on the climate, but also to encourage innovation and efficiency to benefit and protect the people of the country,” SAYS John F. Gandolfo, IFC’s Acting Regional Vice President for Asia and the Pacific. “Increased participation of the private sector in renewable energy and energy transmission, housing, transportation, and climate smart agriculture is necessary and possible, with joint efforts to accelerate the necessary reforms to overcome obstacles in domestic and foreign investment and green the financial sector so that more funds are available for green projects.”
The report highlights three priority areas for development and climate change in Bangladesh:
People-centered, climate-smart development: A development approach that considers regional variations in climate impacts and builds on Bangladesh’s experience in locally-led adaptation and small-scale solutions is essential. Investing in public services, environmentally-based solutions, and urban infrastructure—including affordable housing, strong transportation connections, and water and waste management—will help cities prepare for the influx. of climate migrants.
Delivering development benefits with decarbonisation: Emissions from energy, transportation, industry, and agriculture can be reduced at relatively low cost and provide significant benefits related to air pollution, health costs, and jobs. By implementing policies that reduce air pollution and emissions, Bangladesh can cut deaths from air pollution in half or save nearly 1 million lives by 2030. Shifting industries to more sustainable ways will increase their global competitiveness. With rapid urbanization, income growth, and changing dietary patterns, there are opportunities for more efficient, low-carbon agriculture and food systems while increasing resilience and rural incomes.
Enabling environment and institutional realignment: With stronger legislative and institutional capacity, Bangladesh can accelerate the implementation of existing policies and programs. It is important to empower local governments to plan and implement adaptation programs. Addressing financial sector vulnerabilities will be critical along with policies to green the financial sector. More involvement of the domestic and foreign private sector, such as climate-smart agriculture and renewable energy, is necessary.
Some parts of Bangladesh are more vulnerable to the effects of climate change. Therefore, investments should be prioritized for climate hotspots such as Barind, Coastal zone, Haor area, and Hill Tracts, and the regions facing higher rates of poverty and natural hazards: the western upazilas of Mymensingh, eastern upazilas of Rangpur, and southern part. in Khulna Division.
The report identifies high-impact interventions that are ready for implementation. This includes prioritizing and allocating financing for the most urgent projects under the Bangladesh Delta Plan 2100, transforming food systems, implementing energy-efficient and circular economy solutions in ready-made garments and textile factories, setting sustainable and energy-efficient building standards, and mitigating emissions through tariff reforms and loss reduction. The Bangladesh Delta Plan 2100 and Mujib Climate Prosperity Plan recognize these priorities.
“Bangladesh has taken bold steps towards its goal of supporting global efforts to combat climate change,” said MIGA Executive Vice President, Hiroshi Matano. “The CCDR provides important guidance for the country to pursue its long-term strategy for energy security that is more responsive to climate issues.
At the launch of the report, the World Bank awarded the winners of the IdeaBuzz Championship, a competition among youth seeking climate-smart solutions for inclusive growth in Bangladesh. The competition drew huge interest, with participation from over 400 university students. The first, second, and third prizes were awarded to students of Islamic University of Technology, Bangladesh University of Engineering and Technology, and Institute of Business Administration, University of Dhaka respectively.
