Training on innovative financial instruments for climate action
A high-level training programme titled ‘Training on Innovative Financial Instruments for Climate Action’ was held at The Palace Luxury Resort, Habiganj recently. Economic Relations Division (ERD), Ministry of Finance and the Improved Coordination of International Climate Finance (ICICF) project implemented by GIZ Bangladesh on behalf of the Federal Government of Germany, jointly organised the event, said a press release.
Bangladesh is one of the most climate-vulnerable countries. Despite increasing risks associated with climate changes, the country faces a significant financing gap to address the issue. Financial innovation is therefore key to accelerating financial flows to minimize and close the gap. Over the last decade, there has been significant innovation in financial instruments and mechanisms that have enabled global investors, multilateral institutions, and the private and public sectors to ramp up climate finance. Against this backdrop, the training was organized to provide key actors engaged with climate finance in Bangladesh with a fundamental understanding of different financial instruments and mechanisms that are being used for or show significant potential for raising climate finance globally. Senior officials from ERD, Finance Division, Financial Institutions Division, Bangladesh Bank, as well as representatives from academia, financial Institutions, participated in the training.
The training sessions were conducted by experts including SM Mahbub Alam from ERD, Dr. Suborna Barua from Dhaka University, Chowdhury Liakat Ali from Bangladesh Bank, MJ Azim from Pragati Insurance and Ranjit Kumar Chakraborty, retired Additional Secretary to the Government of Bangladesh.
The topics covered during the training included different types, forms and modalities of climate-relevant financial instruments such as green bonds, equities, guarantees, climate risk insurance etc. as well as their diverse applications for climate mitigation or adaptation projects in Bangladesh
Ms. Sharifa Khan, Secretary, ERD was present as Chief Guest at the event. She said, “As Bangladesh graduates from its Least Developed Countries (LDC) status by 2026, the amount of Overseas Development Assistance (ODA) received by the country will decline substantially. It is therefore essential to explore different modalities and avenues for mobilizing investments towards addressing climate change issues in the country”.
Dr. Firdaus Ara Hussain, Principal Advisor, ICICF Project, GIZ Bangladesh highlighted the different initiatives undertaken by the German Government to support the Government of Bangladesh in the field of climate finance.
The event was concluded by Sharifa Khan thanking everyone for their valuable contribution and active participation in the event. It is expected the participants will have developed a foundational understanding on the features and application of different climate-relevant financing mechanisms, as a result of the training.