|Project title||Sector||SCP practice|
|Bangladesh SusBuild||Building materials industry||Product design for sustainability|
|Eco-Jute||Textile and leather industry||Cleaner Production|
|ECOLEBAN||Textile and leather industry||Environmental Management Systems|
|Jute Diversified Products||Wood-based industry||Business and products for the poor, Product design for sustainability|
|Lead Elimination Project||Chemical sector||Cleaner Production|
|METABUILD||Fabricated metals industry, Building materials industry||Sustainable Supply Chain Management|
|Re-Tie||Textile and leather industry||Cleaner Production, Corporate Social Responsibility (CSR) Management|
|Tomato and Mango Value Chain Project||Food and beverage||Sustainable Supply Chain Management, Eco-labels|
Mr. Nurul Quadir
Ministry of Environment and Forests
Status of SCP policy framework
Bangladesh is country in the northeastern part of South Asia and is bordered by India and Myanmar. It has limited reserves of coal and natural gas. However the proven reserves of gas will be exhausted within a few years, leaving Bangladesh dependent on imported oil (fossil fuel). The country’s main endowments include a vast human resource base and rich agricultural land.
10-year-Social Economic Development Strategy (SEDS): ‘Outline Perspective Plan of Bangladesh (2010-2021): Making Vision 2021 A Reality’ is the main strategy for development of the Bangladesh Government. Concrete actions that are needed to implement SEDS are described in the 5-year Socio-Economic Development Plan (SEDP). The Perspective Plan mainly highlights issues related to architecture, resources, competencies, and capacities. Eradication of poverty, inequality, and deprivation are priorities.
The Sixth Five Year Plan (SYFP) for 2011-2015 follows a development path where the sustainability of development will be ensured through better protection from climate change and natural disasters. The SYFPs’ main focus is on agricultural productivity and growth, manufacturing and exports, energy, transport, urbanization, education, environment, climate change and disaster risk management.
2010 Industrial Policy underlines the need to overcome the challenges of weak investment in climate, lack of export oriented trade, power shortages, as well as inadequate access to credit, low labour productivity and weak research and technology deployment. The policy aims to overcome the challenges by creating and sustaining a momentum of accelerated industrial growth, employment generation and improvement in living standards. With this policy clear signals are given to the private sector by the Bangladesh government that encourage a private sector led industrialization of the country.
The National Land Use Policy (2001) highlights the need for a National Land Zoning Programme for integrated planning and management of land resources; the government concedes that implementation has been inadequate. The government plans to include creating a database of all land resources and land zoning information, and developing a coastal land zoning project to ensure proper use of land and mitigate land degradation.
Energy Development Plan, being a part of the Vision 2021, aims to ensure energy security by increasing the generation capacity of electricity, to increase the efficiency of energy use together with reducing system loss, to diversify fuel use in power generation, to increase private sector participation to mobilize resources in electricity, gas and other energy supply, to reduce the demand-supply gap in both the primary (fossil fuel) and secondary (electricity) sectors, and to conserve energy.
Bangladesh has a National Environment Council with the secretariat in the Ministry of Environment and Forest. The Council is responsible for overall policy guidance, but does not address individual projects.
The SCP-related implementation agencies are: Department of Environment, Department of Forests, Bangladesh Forest Industries Development Corporation, Water Resources Planning Organization, and the Bangladesh Standards and Testing Institution.
Resource consumption and production
Main Resource Consumption and Resource Efficiency Indicators (2010)
|Subject Area||Total||Per person||Per USD$ of GDP|
|Domestic Material Consumption, DMC
(tonnes, tonnes per capita, kgr per 1USD$)
(kilotonnes,tonnes per capita, kgr per 1USD$) )
|Total Primary Energy Supply, TPES
(Petajoules, Gigajoules per capita, Megajoules per 1USD$)
(Trillion litres, Kilolitres per capita, Litres per 1USD$)
|Population density 2015
(UNESA 2012 revision), population per sq.km
|GDP per capita (USD), 2013 WB)||957.8|
|HDI Rank (2013) UNDP||0.558|
|Arable land (hectares per person) WB 2012||0.005|
|Forest cover in % (2010), UNSTATS||11|
|Material intensity (2010)UNEP||2.9|
|Per-capita energy use (kg of oil equivalent per capita) 2011, WB||205|
(total primary energy consumption per USD of GDP) 2011, EIA
|GHG intensity (2010) UNEP||2.01|
|CO2 emissions (metric tone per capita), 2010, WB||0.4|
|Number of Middle Class consumers % (2010), ADB||20|
|Number of people with income < 2USD/day (PPP, USD, %), 2010, ADB||80|
Trends in Resource Consumption and Resource Efficiency Indicators (1970-2010)
In panel a) we can see that Bangladesh’s TPES grew the fastest of the overview indicators, followed by GDP then DMC. This indicates that energy intensity increased, while material intensity decreased. Interestingly, even though TPES grew rapidly, the slowest growth was in GHGs. This indicates that either GHGs in Bangladesh are dominated by sources other than energy production, or that the change in energy sources has been towards lower GHG emissions intensities. Comparing trajectory of DE in panel b) with GDP in a), it appears that the doubling of GDP from 1970 to 1995 required little in the way of increased DE, however from 1995 on economic growth appears to have required increasing inputs from the domestic environment, notably of non-metallic minerals, presumably for construction. The MF data in panel c) further confirms a fairly rapid increase in Bangladesh’s material requirements from around 1995, which plateaus within a decade, with a subsequent decrease in non-metallic minerals but continued growth in fossil fuels. Panels d), e) and f) show that all intensities decreased or remained relatively static over the period 1990 to 2010, so the deterioration in energy efficiency we would expect from panel a) was restricted to the earlier 1970 to 1990 period. Improvements in GHG intensities have been particularly strong and consistent for the 1990 to 2010 period. The large gap between energy consumption when measures on a TPES of EF basis noteworthy in panel e), with TPES estimates higher than EF by around 50% to 100%.
(Source: UNEP CSIRO Indicators for a Resource Efficient and Green Asia and the Pacific, 2015)
Key references relevant to SCP
UNEP's relevant activities
The information in the country profiles herein have been obtained through research with firsthand and secondhand sources. The information presented herein cannot be considered as official policy of governments or other official bodies. The SWITCH-Asia Programme cannot be held responsible for the content of the sites to which it provides links or for the availability of servers or links. Information is being continuously updated in order to maintain an up to date country profile. If you would like to contribute information for this profile or have any further comments, please send an email to: SWITCH-PSC@unep.org
Micro, small, and medium enterprises provide more than 75% of the income of the households in Bangladesh. The sector contributes nearly 25% of the GDP, 40% of gross manufacturing output, 80-85% of industrial jobs and constitutes around 25% of the total labor force making this sector an attractive one for lending by financial institutions.
Due to the Bangladesh’s high climate change vulnerability, banks and financial institutions need to guard against the risks arising from climate change impacts and create market opportunities for business to build resilience while mitigating the effects of climate change.
SMEs are a vital part of Bangladesh’s economy and must adopt new and sustainable technologies to grow sustainably. Currently most SMEs are financed by commercial banks, but have been seen as less attractive due to high risk and low returns, as compared with industrial loans.
 Uddin, M. (2014). A Study on Financing of SME’s in Bangladesh. Journal Of Economics And Sustainable Development, 5(11), 161-168. Retrieved from http://iiste.org/Journals/index.php/JEDS/article/view/13866/14127
Green financing developments
Commercial banks in Bangladesh are required by the government to develop and adopt green banking policies and banks shall allocate a percentage of their annual budget to three areas:
- Green finance
- Climate Risk Fund
- Marketing, training, and capacity building
Green financing from commercial banks has supported projects and SMEs in the following areas:
- Bio-gas plants
- Bio fertilizer plants
- Solar panel / renewable energy plants
- Solar irrigation pumping station
- Solar home systems
- Hybrid Hoffman Kiln (HHK) (green bricks)
- Waste management
The Bangladesh Bank is a leader in green financing in Bangladesh, and in 2011 launched the Environmental Risk Management (ERM) Guideline for banks and institutions to integrate into existing credit risk management procedures. In 2012, the Bangladesh Bank also issued guidance on green banking reporting (UNEP 2016). Bangladesh Bank is now working in the field of policy formulation and monitoring of:
- Green finance
- Environmental risk management
- Green marketing
- Green product innovation
- Green strategic planning
In 2015 the Bangladesh Bank announced a EUR 472.27 million Green Transformation Fund for the textile sector to help textile businesses adopt clean production processes. International Finance Corporation (IFC) will take the lead in structuring the fund. Additionally, all financial institutions have been directed to allocate at least 5% of their lending to green finance by 2016, and banks now offer reduced loan rates for wind, solar, and other clean energies.
 Islam, M., & Kamruzzaman, M. (2015). Green Banking Practices in Bangladesh. IOSR Journal Of Business And Management (IOSR-JBM), 17(4), 37-42. Retrieved from http://iosrjournals.org/iosr-jbm/papers/Vol17-issue4/Version-5/E017453742.pdf
 World Bank. (2015). Central Bank of Bangladesh Announces $500 Million Green Fund for Textile Sector. Retrieved from http://www.worldbank.org/en/news/feature/2015/03/31/central-bank-of-bangladesh-announces-500-million-green-fund-for-textile-sector
- Access to finance
- Underdeveloped legal and regulatory framework
- Low levels of capacity and knowledge
- Low amount of capital
- Lack of financial knowledge and mismanagement of loan money
- Limited financial products for SMEs
- Unwillingness of financial institutions to lend and the private sector to invest in green finance
- Loan payments are not borrower-friendly
- High collateral requirements for loans
- Absence of or limited Credit Rating Agency (CRA)
- Limited reaches of banks in rural areas
Main institutions providing Green Finance
- Asian Development Bank (ADB) (EUR 47.22 million revolving fund)
- FMO - Dutch Development Bank
- World Bank
- International Bank for Reconstruction and Development (IBRD)
- International Finance Corporation (IFC)
- International Development Association (IDA)
- IDLC finance limited - the largest multi-product multi-segment Non-Banking Financial Institution in Bangladesh
- Bangladesh Bank
- Agrani Bank Limited
- BASIC Bank Limited
- Dutch-Bangla Bank Limited (DBBL)
- International Finance Investment and Commerce Bank Limited (IFIC Bank)
- One Bank
- Standard Chartered Bank
- United Commercial Bank Limited
- Janata Bank Limited
- Rupali Bank Limited
- Social Islami Bank Limited
- Export Import Bank of Bangladesh (EXIM Bank)
- Bangladesh Development Bank Limited
- Dhaka Bank Limited
- AB Bank Limited
- Bangladesh Commerce Bank Limited
- Bank Asia Limited
- BRAC Bank Limited
- Mercantile Bank Limited
New financing for SMEs / innovative financing mechanisms:
IDLC has created a Green Banking Unit (GBU) as one of its major priority sectors and now recognized as one of the market leaders in promoting the Green Banking Concept in Bangladesh. Its total loan portfolio is EUR 642 million of which 88% is dedicated to SMEs. Its target in 2015 for direct green finance was EUR 11.8 million, focusing on the following areas:
- Renewable Energy
- Energy Efficiency
- Green Industry
- Fire & Safety Management
- Waste Management
 FMO Entrepreneurial Development Bank. (2015). Green SME Finance in Bangladesh. https://www.fmo.nl/l/library/download/urn:uuid:c451168d-a60b-4218-a641-921115b1b2f4/2015+client+case+idlc+finance.pdf?format=save_to_disk&ext=.pdf
Status and policies
GHG emissions data
2015 total territorial GHG emissions* (excluding land use change and forestry): 77 MtCO2
2015 territorial GHG emissions per capita: 0.5 tCO2
2014 CO2 consumption emissions: 95 MtCO2
*GHG territorial emissions are Carbon dioxide emissions from the use of coal, oil and gas (combustion and industrial processes), the process of gas flaring and the manufacture of cement.
 CO2 Emissions | Global Carbon Atlas. (2016). Globalcarbonatlas.org. Retrieved from http://www.globalcarbonatlas.org/en/CO2-emissions
 Carbon dioxide emissions occurring anywhere in the world attributed to the country in which goods and services are consumed. For more information see: Section 2.1.2, The global carbon budget 1959-2015, Le Quéré et al. 2016.
2016 GDP: EUR 204.51 billion
GDP composition by sector:
Agricultural products: rice, jute, tea, wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit; beef, milk, poultry
Industry subsectors: jute, cotton, garments, paper, leather, fertilizer, iron and steel, cement, petroleum products, tobacco, pharmaceuticals, ceramics, tea, salt, sugar, edible oils, soap and detergent, fabricated metal products, electricity, natural gas
 The World Factbook — Central Intelligence Agency. (2017). Cia.gov. Retrieved 1 August 2017, from www.cia.gov/library/publications/the-world-factbook/geos/bg.html
Climate change policies
- National Adaptation Programme of Action (NAPA) 2005
- Bangladesh Climate Change Strategy and Action Plan 2009 (-2018)
- Renewable Energy Policy 2008
- The Energy Efficiency and Conservation Master Plan up to 2030 (E&CC Master Plan) 2015
- The National Sustainable Development Strategy (2010-2021) (2013)
International mitigation targets
UNFCCC ratified in 1994The Kyoto Protocol ratified in 2001Paris Agreement ratified in 2016
Bangladesh’s INDC to the UNFCCC:
- Unconditional contribution: Bangladesh will reduce its GHG emissions in the power, transport, and industry sectors by 12 MtCO2e by 2030 or 5% below Business-As-Usual (BAU) emissions for those sectors.
- Conditional contribution, assuming additional international support: Bangladesh will reduce its GHG emissions in the power, transport, and industry sectors by 36 MtCO2e by 2030 or 15% below BAU emissions for those sectors.
(Under a BAU scenario, GHG emissions in Bangladesh in these sectors are expected to represent 69% of total emissions by 2030 (excluding LULUCF), an increase of 264% by 2030, from 64 MtCO2e in 2011 to 234 MtCO2e in 2030.)
Government financing for climate change related initiatives:
Over the last three decades, the Government of Bangladesh has invested over EUR 7.56 billion (at constant 2007 prices) to make the country more climate resilient and less vulnerable to natural disasters.
1. A Country Investment Plan (CIP) for Environment, Forestry and Climate Change 2016-17 to 2020-21 is being prepared.
2. The government also established the Bangladesh Climate Change Trust Fund (BCCTF), which has allocated approximately EUR 377 million in the last 7 years (2009-2017).
- As of June 2016, 440 projects have been undertaken, of which 377 projects are being implemented by government, semi-government, and autonomous agencies, while 63 projects are being implemented by NGOs.
3. Bangladesh Climate Change Resilient Fund (BCCRF) is a multi-donor fund with approximately EUR 118.5 million, established in May 2010 with financial support from Denmark, European Union, Sweden and United Kingdom. Switzerland, Australia and United States subsequently joined the fund. Management and implementation is undertaken by the Government of Bangladesh with technical assistance executed by the World Bank.
 INDCs - Intended Nationally Determined Contributions. Unfccc.int. 2017. Retrieved from http://unfccc.int/focus/indc_portal/items/8766.php
Ministry of Environment and Forests, Government of the People’s Republic of Bangladesh. 2015. Intended Nationally Determined Contributions. Retrieved from http://www4.unfccc.int/ndcregistry/PublishedDocuments/Bangladesh%20First/INDC_2015_of_Bangladesh.pdf
 Aman, M. (2015). Introduction to the Bangladesh Climate Change Trust Fund | Dhaka Tribune. Archive.dhakatribune.com. Retrieved 1 August 2017, from http://archive.dhakatribune.com/environment/2015/jun/13/introduction-bangladesh-climate-change-trust-fund
Climate change adaptation efforts
Climate change adaptation is a key priority for Bangladesh and the country has already undertaken initiatives to mainstream adaptation into national development in the water, health, forestry, and agriculture and more prominently in the infrastructure sectors. Since the country is so greatly impacted by climate change, Bangladesh has been engaged in adaptation efforts since the 1970s.
1. Bangladesh has prepared a roadmap towards formulating a comprehensive National Adaptation Plan (NAP).
2. Bangladesh Climate Change Resilience Fund (BCCRF)
3. Bangladesh Climate Change Trust Fund (BCCTF) - As of June 2015 BCCTF has funded over 236 projects of which 41 have already been implemented. The projects undertaken so far from BCCTF include:
- Construction of embankments and river bank protective works
- Building cyclone resilient houses, excavation /re-excavation of canals
- Construction of water control infrastructures including regulators/sluice gates
- Waste management and drainage infrastructure
- Introduction and dissemination of stress tolerant crop varieties and seeds, afforestation
- Installation of solar panels.
 Ministry of Environment and Forests (MOEF) Government of the People’s Republic of Bangladesh. (2015). Intended Nationally Determined Contributions (INDC) pp 11. Retrieved from http://www4.unfccc.int/ndcregistry/PublishedDocuments/Bangladesh%20First/INDC_2015_of_Bangladesh.pd
Climate change impacts
Bangladesh has a population of 162.9 million, and according to the Climate Change Vulnerability Index (CCVI) Bangladesh is the second most vulnerable nation to climate change. Two-thirds of the country is less than five meters above sea level, and floods increasingly inundate homes, destroy farm production, close businesses, and shut down public infrastructure.
Persistent poverty and a high reliance on agriculture, forestry, and fishing for livelihoods increase people’s vulnerability to climate impacts. Water resources are very scarce due to salinity intrusion from sea level rise, affecting daily life. It is estimated that rising sea levels alone will displace 18 million Bangladeshis within the next 40 years.
Main climate change impacts include:
- Extreme temperatures
- Erratic rainfall
- Tropical cyclones and storm surges
- River bank erosion
- Rising sea level
- Saline intrusion
- Ocean acidification
 Climate Change Vulnerability Index 2016. (2016). ReliefWeb. Retrieved from reliefweb.int/report/chad/climate-change-vulnerability-index-2016
 Rashid, P. (2015). Climate Crisis in Bangladesh. The Diplomat. Retrieved 1 August 2017, from http://thediplomat.com/2015/10/climate-crisis-in-bangladesh/
 Bangladesh: Building Resilience to Climate Change. (2016). World Bank. Retrieved from http://www.worldbank.org/en/results/2016/10/07/bangladesh-building-resilience-to-climate-change
Economic, social, and environmental risks posed by climate change
The economic losses in Bangladesh over the past 40 years due to climate shocks were at an estimated at EUR 11.3 billion and the costs to Bangladesh of global climate change could amount to an annual loss of 2% of GDP by 2050 and 9.4% of GDP by 2100.
- Accounts for 19.6 per cent of gross domestic product and employs around 60 per cent of the population
- Climate change impacts will seriously affect agriculture, fisheries, and livestock sectors.
- A World Bank study in 2014 showed that soil salinity would cause a 15.6 % decline in the yield of high-yield rice.
- More frequent droughts and rising temperatures will also affect rice and wheat production.
Sea level rise:
- 40% of productive land is projected to be lost in the southern region of Bangladesh for a 65cm sea level rise by the 2080
- Intrusion of saline water will continue as the area under 1 ppt salinity line is expected to increase by 18.22% and area under 5 ppt salinity is expected to increase 24% by 2050
- Cyclone-induced storm surges are will be exacerbated
- Salinization of soil
- Sedimentation of rivers is increasing
- Over 20 million people in the coastal areas of Bangladesh are affected by salinity in drinking water
- Groundwater is declining from temperature rises and variability in rainfall
- Clean water becomes a trade item which needs to be purchased for daily necessities
SMEs and industry:
- The severe floods in 2004 that lasted from July to September are estimated to have cost Bangladesh’s garment industry EUR 2.4 million per day.
- Infrastructure and building damage
- Raw material spoilage/damage in case of rainfall or flood
- Machinery damage from heat waves
- Impacts on employees and consumers – lack of access to basic goods and services
- Lack of water and energy availability affect operations and productions Disruption in supply chain
- Changes in demands for goods
- Heightened price and market volatility
- Health issues from heat waves and increase of disease will cause decreases in labor and work production
- Increase of vector and waterborne diseases
- A quarter of Bangladeshis are food insecure and 41% of children under 5 are stunted; risk of increased malnutrition
- Fresh water is scarce, forcing some to drink salinized water which can lead to hypertension
 The World Factbook — Central Intelligence Agency. (2017). Cia.gov. Retrieved 1 August 2017, from www.cia.gov/library/publications/the-world-factbook/geos/bg.html
 Asian Development Bank. (2014). Bangladesh Could See Climate Change Losses Reach Over 9% Of GDP - Report. Retrieved from https://www.adb.org/news/bangladesh-could-see-climate-change-losses-reach-over-9-gdp-report
 Dasgupta, S., Hossain, M., Huq, M., & Wheeler, D. (2014). Climate Change, Soil Salinity, and the Economics of High-Yield Rice Production in Coastal Bangladesh, World Bank Policy Research Working Paper 7140. Retrieved from http://documents.worldbank.org/curated/en/131161468004833954/pdf/WPS7140.pdf
 World Bank Group. (2013). Warming Climate to Hit Bangladesh Hard with Sea Level Rise, More Floods and Cyclones, World Bank Report Says. Retrieved from http://www.worldbank.org/en/news/press-release/2013/06/19/warming-climate-to-hit-bangladesh-hard-with-sea-level-rise-more-floods-and-cyclones-world-bank-report-says
 Climate Change Cell. (2016). Assessment of Sea Level Rise on Bangladesh Coast through Trend Analysis. Bangladesh: Climate Change Cell Department of Environment Ministry of Environment and Forests. Retrieved from http://gobeshona.net/wp-content/uploads/2016/08/SLR-Report_final_July-2016.pdf
 Frei-Oldenburg, A., Meyer, K., von Stumpfeldt, G., & Zinnkann, H. (2015). Private Sector Adaptation to Climate Change (PSACC). Retrieved from https://www.giz.de/expertise/downloads/giz2015-en-private-sector-adaptation.pdf
 PwC, DFID. (2013). Stimulating private sector engagement and investment in building disaster resilience and climate change adaptation. PricewaterhouseCoopers LLP. Retrieved from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/305412/stimulating-private-sector-engagement-climate-disaster-resilience.pdf
International cooperation on climate change
Status: 2017. Inclusive of grants and loans; not an exhaustible list.
No. of Projects
Program/ Areas of focus
Global Environment Facility
Biodiversity, Climate change, land degradation
GEF Trust Fund, Least Developed Country Fun
Clean Air and Sustainable Environment Project
Approved Jan 2017
Forest Investment Plan Preparation Project for Bangladesh
USAID Global Climate Change Program
Climate change, energy, sustainable landscapes
Climate Investment Funds
Climate Smart SME Financing
Climate Investment Fund, Pilot Program for Climate Resilience (PPCR)
International Climate Initiative (IKI)
Strengthening biodiversity protection, adaptation, and guarding against corruption in climate finance
German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)
UN REDD Program
and climate change
UN REDD, Forest Carbon Partnership Facility, IKI, Government
Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH. (GIZ)
Promotion of the Climate Change Unit in coordinating the Bangladesh Climate Strategy and Action Plan
Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)
Promotion of the Management of Sunderbans-Mangrove Forest in Bangladesh (Sunderbans II)
€ 5 Million
Adaption to Climate Change into the National and Local Development Planning
€ 5 Million
Urban Management of internal Migration due to Climate Change
€ 5 Million
Private Sector Adaptation to Climate Change
€ 3.6 Million