Bangladesh looks to NDB for blended global climate finance
Bangladesh requested New Development Bank’s assistance in blending global climate finance for green development as the country faces climate challenges.
Shahriar Kader Siddiky, the Secretary, Economic Relations Division, Ministry of Finance and Alternate Governor of Bangladesh, speaking at the Opening Ceremony Session of the 9th Annual Board of Governors’ Meeting, held in Cape Town, on Friday highlighted that Bangladesh, despite making a negligible contribution to global climate change, had been suffering the most as a victim of its consequences.
“It is disheartening that over 40% of the assistance received for climate-related issues has come in the form of loans,” Siddiky said.
He said the NDB had already offered a multicurrency option for the implementation of projects in Bangladesh, which “is very remarkable”.
Additionally, Bangladesh sought the NDB’s support to introduce local currency options as a multi-currency operation in the country.
“The cost of financing is a critical factor in ensuring prudent borrowing and avoiding debt traps. I urge the NDB Management to explore innovative financing options that are affordable, competitive, and aligned with our development objectives, ensuring mutual benefits for all stakeholders. We must act decisively and proactively in response to the rapidly changing global landscape,” he said.
"At this juncture, innovative mechanisms are crucial to empower borrowing members in addressing their financial needs and to attract potential non-members to join our collective endeavour,“ he said.
Siddiky said policy-based support and concessional financing were vital tools in addressing the current economic challenges, saying the NDB should consider offering concessional financing for climate change initiatives, incorporating cutting-edge technologies to facilitate the transition from fossil fuel-based energy to renewable sources.
“This transition must be designed to avoid imposing additional financial burdens on member states,“ he said.
Siddiky also requested the introduction of budget support projects and Climate Policy-based Projects similar to those of other development partners like the World Bank, African Development Bank and Asian Infrastructure Investment Bank.
Furthermore, Bangladesh proposed the introduction of a Country Strategy Paper, aligned with its national plan, to ensure improved predictability and help Bangladesh better prepare and plan its development projects according to priorities.
“Over the past two decades, Bangladesh has achieved remarkable economic growth, consistently almost 6.0%, alongside significant advancements in socio-economic indicators, defying global odds and has achieved the gateway for graduation from the Least Developed Country (LDC) status by 2026. We are profoundly grateful for the unwavering support of our development partners throughout this journey,” Siddiky said.
He said the recently formed interim government under the prudent leadership of worldwide renowned Nobel Laureate Honourable Chief Advisor Dr Muhammad Yunus looked to multilateral development partners like NDB for development works.
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