Engaging the private sector to finance climate change adaptation

The World Bank recently approached Bangladesh, offering unsolicited loans to help the low-lying country adapt to the severe tropical storms whose impact has made it one of the most climate vulnerable countries in the world.

But Fazle Rabbi Sadeque Ahmed doesn’t want that help. The director of the government-managed Bangladesh Climate Change Trust said his government needs to ensure a steady supply of fresh water and upgrade roads with embankments to prevent erosion; measures that are critical to helping Bangladeshis adapt to the punishing effects of climate change.

But, Ahmed is worried about his cash-strapped country’s ability to pay back tens of millions of dollars plus interest. What Bangladesh wants, he said, is what developed countries promised them and other low-income countries: grants, not loans.

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