Welcome to the February 2025 issue of the ECRL Monthly Economic & Business Review. As the world grapples with the escalating climate crisis, this edition delves deep into one of the most pressing economic challenges of our time: climate finance. The ability to secure sustainable funding for climate mitigation and adaptation has become a defining factor in the resilience of economies worldwide, and Bangladesh stands at the heart of this financial battleground.
Our cover story, “Climate Finance in Bangladesh: Challenges, Opportunities, and the Road Ahead”, explores the critical funding shortfalls facing the nation. Despite contributing just 0.4% of global greenhouse gas emissions, Bangladesh ranks among the top 10 most climate-vulnerable countries. The country requires approximately USD 12.5 billion annually to fund climate resilience projects—yet current spending stands at only USD 3 billion. This staggering financing gap underscores the urgency of mobilizing both domestic and international funds to safeguard economic stability and environmental sustainability.
Bangladesh has made significant strides in accessing global climate finance, with support from institutions like the Green Climate Fund (GCF), the Global Environment Facility (GEF), and various multilateral development banks. However, bureaucratic inefficiencies, slow disbursement of funds, and limited private-sector participation continue to hinder progress. This edition provides a thorough analysis of these challenges and presents actionable policy recommendations, including strengthening governance frameworks, enhancing public-private partnerships, and leveraging innovative financial instruments like green bonds and carbon pricing mechanisms. To further enrich our understanding of climate finance, this issue features a comparative study of global best practices. We examine how countries like Morocco, India, the Philippines, and Brazil have successfully mobilized climate funds, drawing valuable lessons for Bangladesh. From Morocco’s strategic use of public-private partnerships to India’s pioneering green finance initiatives, these case studies offer critical insights into effective climate investment strategies.
Beyond climate finance, this edition also highlights Bangladesh at a crossroads, confronting a silent yet pervasive crisis—air pollution. Our feature, “Bangladesh at a Crossroads: The Peril of Air Pollution and the Promise of a Greener Future”, examines the dire consequences of unchecked urbanization, industrial emissions, and weak regulatory enforcement. With Dhaka ranking among the world’s most polluted cities, the stakes have never been higher. The article delves into Bangladesh’s record-high PM2.5 levels, the health and economic toll of pollution, and the urgent need for strategic action. It also explores promising solutions, including stricter emissions regulations, investments in renewable energy, and leveraging climate finance to drive sustainable urban transformation.
In our exclusive interview section, we bring you an insightful conversation with SAJIDA Foundation, a key player in climate adaptation financing. The organization’s innovative approaches to climate-resilient livelihoods, green skills development, and disaster risk reduction highlight the transformative potential of localized climate finance solutions. Their work serves as an inspiring model for integrating social impact with financial sustainability.
At ECRL, our mission is to provide thought-provoking, data-driven insights that empower policymakers, investors, and business leaders to navigate the evolving economic landscape. As we continue to address the challenges and opportunities of climate finance, we hope this edition serves as a valuable resource for shaping a more resilient and sustainable future for Bangladesh.
Here’s to informed decision-making and proactive climate action.