A Strategy to Engage the Private Sector in Climate Change Adaptation in Bangladesh

Policy Brief / Strategy Brief

A Strategy to Engage the Private Sector in Climate Change Adaptation in Bangladesh

AUTHORS: Prepared by Asian Tiger Capital Partners

PUBLISHED DATE

May 2012

RESOURCE

 As noted in the Bangladesh Climate Change Strategy  and Action Plan, the combination of frequent natural disasters, high population density, poor infrastructure and low resilience to economic shocks, makes Bangladesh especially vulnerable to climatic risks. The high incidence of poverty and heavy reliance of poor people on agriculture and natural resources increases their vulnerability to climate change. The Government of Bangladesh (GOB) with the support of the major donor agencies has outlined a comprehensive strategy on tackling climate change. The effort has been spear-headed by a climate change cell set up within the Ministry of Environment and Forests. On a global basis, while Adaptation is still seen as more of a public sector focus than mitigation, some increased focus has been evident. The private sector should also be seen as a “supplier of innovative goods and services”. There  is a clear need to meet the adaptation priorities of developing countries with expertise in technology and service delivery. The private sector has particular competencies which can make a unique contribution to adaptation, through innovative technology, design of resilient infrastructure, development and implementation of improved information systems and the management of major projects.  There are future investment opportunities in adaptation in water resources, agriculture and environmental services. In agriculture, investment may be needed for developing irrigation equipment and technologies as well as fertilizers. Provision of clean water is another opportunity, requiring investment in water purification and treatment technologies such as desalination, and wastewater treatment technologies. Environmental services such as weather derivatives are also a possible area for investment