Written by The Banking Post
The International Fund for Agricultural Development (IFAD) has approved $51.4 million in co-financing for a large-scale rural development project in Bangladesh, aimed at boosting climate resilience, food security and green entrepreneurship.
The approval came at IFAD’s 146th Executive Board session held on December 9–10. The funding will support the $211.7 million Growth for Climate-Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project, which will be implemented over six years from 2026 to 2031.
GREEN will target around 1.1 million people living in climate-vulnerable areas, including the haor wetlands, coastal belt, High Barind region and river char areas. The project focuses on smallholder farmers, rural microenterprises and young entrepreneurs, helping them adapt to climate change while building diversified and resilient livelihoods.
The Financial Institutions Division of the Ministry of Finance will execute the project, with implementation led by the Palli Karma-Sahayak Foundation (PKSF). A national steering committee, comprising the Finance Division, the Economic Relations Division and PKSF, will provide strategic oversight.
“The GREEN project builds on the long-standing partnership between IFAD and the government of Bangladesh to enhance rural livelihoods and expand income opportunities through inclusive, climate-aware financing and environmentally responsible growth,” said IFAD’s country director for Bangladesh.
He said the initiative represents a new generation of investment that links climate adaptation, agroecological practices and market-driven rural enterprises to help communities grow while protecting ecosystems.
Under the project, climate-smart practices will be expanded across crops, livestock and fisheries. Planned interventions include renewable energy solutions, efficient water-use technologies, organic farming methods and small-scale agro-processing to improve productivity, conserve resources and promote healthier diets.
Through PKSF’s nationwide network, GREEN will also widen access to affordable, climate-informed financial services, particularly for women, youth and rural microenterprises. The financing will support adoption of sustainable technThe International Fund for Agricultural Development (IFAD) has approved $51.4 million in co-financing for a large-scale rural development project in Bangladesh, aimed at boosting climate resilience, food security and green entrepreneurship.
The approval came at IFAD’s 146th Executive Board session held on December 9–10. The funding will support the $211.7 million Growth for Climate-Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project, which will be implemented over six years from 2026 to 2031.
GREEN will target around 1.1 million people living in climate-vulnerable areas, including the haor wetlands, coastal belt, High Barind region and river char areas. The project focuses on smallholder farmers, rural microenterprises and young entrepreneurs, helping them adapt to climate change while building diversified and resilient livelihoods.
The Financial Institutions Division of the Ministry of Finance will execute the project, with implementation led by the Palli Karma-Sahayak Foundation (PKSF). A national steering committee, comprising the Finance Division, the Economic Relations Division and PKSF, will provide strategic oversight.
“The GREEN project builds on the long-standing partnership between IFAD and the government of Bangladesh to enhance rural livelihoods and expand income opportunities through inclusive, climate-aware financing and environmentally responsible growth,” said IFAD’s country director for Bangladesh.
He said the initiative represents a new generation of investment that links climate adaptation, agroecological practices and market-driven rural enterprises to help communities grow while protecting ecosystems.
Under the project, climate-smart practices will be expanded across crops, livestock and fisheries. Planned interventions include renewable energy solutions, efficient water-use technologies, organic farming methods and small-scale agro-processing to improve productivity, conserve resources and promote healthier diets.
Through PKSF’s nationwide network, GREEN will also widen access to affordable, climate-informed financial services, particularly for women, youth and rural microenterprises. The financing will support adoption of sustainable technologies, strengthen value chains and create rural employment.
In addition, the project will strengthen institutional capacity and policy engagement by integrating climate adaptation, nutrition and gender equality into rural finance and development planning. It will work closely with the Ministry of Finance and the Ministry of Environment, Forest and Climate Change.
The initiative aligns with Bangladesh’s Eighth Five-Year Plan, National Adaptation Plan, Nationally Determined Contributions and Delta Plan 2100, while contributing to several Sustainable Development Goals, including poverty reduction, food security, gender equality and climate action.
The investment forms part of IFAD’s broader Asia-Pacific strategy to build climate-resilient food systems and inclusive rural economies, helping vulnerable communities withstand future shocks and seize new economic opportunities.ologies, strengthen value chains and create rural employment.
In addition, the project will strengthen institutional capacity and policy engagement by integrating climate adaptation, nutrition and gender equality into rural finance and development planning. It will work closely with the Ministry of Finance and the Ministry of Environment, Forest and Climate Change.
The initiative aligns with Bangladesh’s Eighth Five-Year Plan, National Adaptation Plan, Nationally Determined Contributions and Delta Plan 2100, while contributing to several Sustainable Development Goals, including poverty reduction, food security, gender equality and climate action.
The investment forms part of IFAD’s broader Asia-Pacific strategy to build climate-resilient food systems and inclusive rural economies, helping vulnerable communities withstand future shocks and seize new economic opportunities.
