The International Finance Corporation (IFC) and the Danish International Development Agency (DANIDA) have joined forces to establish the Bangladesh Climate Advisory Partnership (B-CAP) to boost climate-smart private investment in key sectors, aiming to mitigate carbon emissions and enhance green finance.

Climate change poses significant risks to Bangladesh’s development, requiring substantial investments in mitigation and adaptation, IFC said in a statement issued on Tuesday.

It said supported by $5.3 million, the IFC-DANIDA partnership aimed to catalyze $50 million in climate-smart private investments by 2027, with a focus on manufacturing and green finance.

According to the statement, B-CAP’s core pillars included accelerating climate-smart investments, enhancing green finance, promoting sustainable practices, and ensuring gender inclusiveness, all aligned with IFC’s strategic climate objectives for low-carbon, resilient growth in Bangladesh.

‘By catalyzing climate-smart private investments in Bangladesh, we are 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,’ Holtmann added.

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, the statement said.

Ambassador of Denmark to Bangladesh Christian Brix Møller said that this collaboration with IFC was a significant step towards advancing the 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,’ the ambassador mentioned.