Written by The Banking Post
Bangladesh has sought $1.5 billion in budget support from the Asian Infrastructure Investment Bank (AIIB) to strengthen climate policies and push sustainable development goals, officials confirmed.
The loan will be disbursed in three phases — the first tranche expected this year, the second in 2026, and the final one in 2028. An AIIB mission is set to visit Dhaka this month to finalise the reform agenda tied to the programme.
The support package will involve key reforms across the Energy, Power, Agriculture, and Housing ministries. Plans include reducing gas sector system losses, introducing prepaid and EVC meters in residential and industrial zones, monitoring carbon emissions, and updating technology for cleaner energy use. A central oversight committee under the Energy Division and supervisory bodies under the Bangladesh Petroleum Corporation will ensure implementation.
In the oil sector, the government plans to introduce automation to improve efficiency in distribution depots, while agriculture reforms will focus on reducing carbon emissions from farming. The Housing Ministry will adopt policies for greener construction practices.
Officials said the initiative also covers large-scale tree planting and the creation of an eco-friendly working environment, backed by stronger data integration and oversight systems.
A senior finance ministry official noted that the AIIB has been extending climate-focused budgetary support to Bangladesh in recent years. “The bank has consistently supported climate resilience and inclusive growth. This programme will help Bangladesh align reforms with long-term sustainability goals,” the official said.
