Dhaka: The International Fund for Agricultural Development (IFAD) has sanctioned $51.4 million in co-financing for a $211.7 million initiative aimed at fostering climate-resilient and inclusive rural growth in Bangladesh, targeting approximately 1.1 million individuals in regions highly susceptible to climate change.
According to Bangladesh Sangbad Sangstha, the approval was granted during IFAD's 146th Executive Board session, which took place on 9-10 December 2025. The six-year Growth for Climate Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project is scheduled for implementation from 2026 to 2031. It will focus on the Haor wetlands, Coastal Belt, High Barind, and River Char regions with the goal of strengthening food security, enhancing climate adaptation, and promoting rural entrepreneurship.
The project will be executed by the Financial Institutions Division of the Ministry of Finance and implemented by Palli Karma Sahayak Foundation (PKSF). It will operate under a national steering committee comprising the Finance Division, Economic Relations Division, and PKSF to ensure strategic oversight and alignment with national priorities.
Valantine Achancho, IFAD Country Director for Bangladesh, stated, 'The GREEN project builds on the long-standing partnership between IFAD and the government of Bangladesh, and our close collaboration with PKSF, to enhance rural livelihoods and expand income opportunities for small producers through inclusive, climate-aware financing and environmentally responsible growth.' He further added that the initiative represents a new generation of investment connecting climate adaptation, agroecological practices, and market-responsive rural enterprises to create pathways for rural communities to prosper while safeguarding their ecosystems.
The project will introduce climate-smart practices across crops, livestock, and fisheries, incorporate renewable energy technologies, promote efficient water use, support organic farming, and strengthen small-scale processing. These efforts aim to raise productivity while conserving natural resources. PKSF's extensive network will facilitate access to affordable, climate-informed financial services for women, youth, and rural microenterprises, supporting sustainable technology adoption, value chain development, and rural job creation.
In addition, the GREEN project will enhance institutional capacity and support policy integration of climate adaptation, nutrition, and gender equality. It will work closely with the Ministry of Finance and the Ministry of Environment, Forest and Climate Change. The initiative will directly support the government's 8th Five-Year Plan, National Adaptation Plan, Nationally Determined Contributions, and Delta Plan 2100, aligning with Sustainable Development Goals related to poverty, hunger, gender equality, reduced inequalities, and climate action.
IFAD emphasized that the investment reflects its broader commitment to strengthening climate-resilient food systems and inclusive rural economies across the Asia-Pacific region.