Bangladesh is preparing for an additional $1 billion in budget help under a financing arrangement led by the Asian Development Bank near the end of the year.
The Manila-based lender would provide $400 million of the $1 billion; the remainder would come from the Japan International Cooperation Agency, the China-led Asian Infrastructure Investment Bank, and other contributors.
Following in the footsteps of the World Bank and the International Monetary Fund, which had provided $500 million and $1.4 billion, respectively, the cash is intended to boost the nation`s efforts toward climate change mitigation and/or adaptation and low-carbon development.
Bangladesh is particularly vulnerable to the effects of climate change since it is a low-lying, densely populated country with a high poverty rate, according to the ADB in a project paper.
According to the Global Climate Risk Index 2021, Bangladesh is likewise a nation that is extremely sensitive to climate risk, coming in at number seven.
ADB, the Manila-based lender has now taken the initiative to help Bangladesh`s efforts to reduce climate risk and adapt to it (particularly through the use of renewable energy, improved energy use, and green mobility).
The $1 billion would help Bangladesh`s stretched dollar stockpile, which, according to data from the central bank, stood at $23.2 billion as of August 23.
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