DHAKA, May 30, 2024 (BSS) - The Agence Française de Développement (AFD)and the United Nations Development Programme (UNDP) today signed an agreement at the Finance Division, Ministry of Finance in Dhaka to launch Phase 2 of the Inclusive Budgeting and Financing for Climate Resilience (IBFCR) Project.

This 1.2 million grant will support the 300 million AfD Climate Policy-Based Loan Program in Bangladesh, a UNDP press release said.

Stefan Liller, Resident Representative of UNDP Bangladesh and Cecilia Cortese, Deputy Country Director, AFD signed the deal on behalf of their respective organizations, in the presence of Marie Masdupuy, Ambassador, Embassy of Republic of France; Dr. Md Khairuzzaman Mozumder, Secretary, Finance Division; Sirajun Noor Chowdhury, Additional Secretary, and other senior government officials.

Initiated by the Ministry of Finance of Bangladesh, this technical cooperation aims to achieve strategic climate change-sensitive planning and budgeting management, strengthened climate public finance governance, and more effective planning and budgeting for climate finance at the local level.

UNDP's previous work with the Ministry of Finance on the Climate Fiscal Framework (CFF) and the first phase of IBFCR project has established a foundation for climate-sensitive public finance. The second phase will deepen climate integration into policymaking and financial management, supporting Bangladesh's efforts against climate change and promoting resilient, low-carbon development in line with national plan.

The Ambassador of France to Bangladesh, Marie Masdupuy affirms: "Bangladesh has demonstrated impressive performance in accelerating economic growth and poverty reduction over the last decade despite being one of the most climate vulnerable countries of the world.

 This remarkable development faces jeopardy due to the widespread repercussions of climate change, which are affecting every sector of the economy. It is also crucial to consider the human dimension of climate change as it has been shown that women, girls and other socio-economically marginalized groups are more severely impacted.

 In this context, the United Nations Development Program (UNDP) experience and knowledge in working with the Ministry of Finance of Bangladesh will be instrumental in strengthening inclusive climate-related public planning, budgeting, and monitoring at both the national and local levels. This Grant Funding agreement illustrates France's steadfast commitment to support Bangladesh in its effort to fight against climate change while achieving a resilient and low-carbon development pathways."

Stefan Liller said, "Climate-informed public finance has become a priority for Bangladesh. The country has made remarkable progress by mainstreaming climate into the Public Finance Management process. The national budget plays a critical role in channeling climate finance at different levels. This pioneering partnership with AfD marks the first of its kind. UNDP will work closely with the Finance Division, Ministry of Finance to ensure that climate change dimensions are more effectively mainstreamed in the policymaking and public financial management systems in Bangladesh for a more climate-resilient economy. We are excited to be part of this initiative and deeply appreciate France's enduring support also as one of UNDPs top core donors globally."
 
Dr. Md Khairuzzaman Mozumder, Secretary, Finance Division, Ministry of Finance stated that both UNDP and AFD play a critical role in addressing Bangladesh's development. UNDP has been a long-standing partner of the Government of Bangladesh in Mainstreaming climate into national policies, plans and budgetary processes. I am hopeful that the IBFCR II project will add new dimensions to public climate finance in Bangladesh.
As the main implementation partner of this project, Finance Division will be providing strategic guidance in respect of delivering intended outputs while enforcing coordination among the relevant agencies.