Dhaka, June 25, 2023— The International Finance Corporation (IFC) and the Danish International Development Agency (DANIDA) have entered into a transformative agreement to establish the Bangladesh Climate Advisory Partnership (B-CAP). This initiative aims to boost climate-smart private investment in Bangladesh's key growth sectors, contributing to carbon mitigation and the reduction of greenhouse gas emissions.
Climate change poses significant risks to Bangladesh's development, requiring substantial investments in mitigation and adaptation. The IFC-DANIDA partnership, backed by $5.3 million, aims to catalyze $50 million in climate-smart private investments by 2027, with a focus on manufacturing and green finance. B-CAP's core pillars include accelerating climate-smart investments, enhancing green finance, promoting sustainable practices, and gender inclusiveness.
Aligned with IFC's strategic climate objectives, this project aims to accelerate an inclusive transition to low-carbon, resilient growth focused on people, jobs, and sustained industrial progress in Bangladesh.
"By catalyzing climate-smart private investments in Bangladesh, we're tackling climate change while fostering resilient, eco-friendly development," said Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan and Nepal. "Teaming up with DANIDA allows us to pool expertise and resources, ensuring our projects uphold the highest environmental and social standards, supporting Bangladesh's development journey."
Building on the successful Partnership for Cleaner Textile (PaCT) program, which provided advisory support for a green transition in Bangladesh's textile industry, B-CAP expands this collaboration to broader climate advisory.
H.E. Christian Brix Møller, Ambassador of Denmark to Bangladesh said, "This collaboration with IFC is a significant step towards advancing our global climate action goals. By investing in Bangladesh's transition to a green economy, we are reinforcing our commitment to sustainable development and international cooperation. "
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About DANIDA
DANIDA – Denmark's development cooperation initiative under the Ministry of Foreign Affairs is dedicated to combating global poverty by promoting human rights and fostering economic growth. As a cornerstone of Denmark's development policy, DANIDA oversees the planning, implementation, and quality assurance of development efforts. Danish embassies and missions worldwide manage these vital programs in individual countries, reaffirming Denmark's dedication to sustainable development and improved living conditions in partner nations. For more information, visit https://um.dk/en/danida.
