Building Readiness of the Private Sector in Bangladesh for GCF Accreditation

This policy brief examines the role of the private sector in Climate Compatible Development (CCD) in Bangladesh, identifying barriers to engagement and the potential for the Green Climate Fund (GCF) to unlock private investment in adaptation and mitigation.

• Engaging the private sector is essential for scaling up Climate Compatible Development (CCD) in Bangladesh due to the high costs of adaptation and mitigation and a constrained fiscal environment. The private sector is a critical source of finance, technology, and risk management expertise that the public sector has largely left untapped.
• Climate change poses a severe economic threat to Bangladesh, with potential annual GDP losses estimated at 2% by 2050 and 9.4% by 2100 if global action is not taken. Private sector assets, supply chains, and operations are directly exposed to these risks, providing a commercial incentive to integrate climate risk management into corporate practices.
• While the Government of Bangladesh views the private sector as the primary engine of growth—accounting for 74.55% of total national economy investment between 2013 and 2014—the specific role of the private sector is not clearly defined within national climate policy and development planning frameworks.
• Bangladeshi companies are already pursuing climate-related market opportunities. Examples include Rahimafrooz Renewable Limited selling solar home systems, and companies such as PRAN, Lal Teer, and Advanced Chemical Industries (ACI) developing and marketing climate-resilient seed varieties.
• Several barriers hinder broader private sector engagement in CCD, most notably information gaps, weak financial markets (including a lack of low-cost finance), capacity constraints, and policy or regulatory barriers. Market size was rarely perceived as a significant barrier.
• The Green Climate Fund (GCF) and its Private Sector Facility (PSF) offer a mechanism to overcome investment barriers. As of February 2016, the GCF had USD 6.9 billion available. The PSF aims to mobilize institutional investors through products like green bonds and support SMEs through a pilot programme focusing on adaptation and supply chain management.
• There is significant interest among the Bangladeshi private sector in accessing GCF funds, with nearly 80% of interviewed respondents expressing interest, although 50% were only partially or not aware of the GCF. The primary instruments of interest are grants and concessional finance (54% of respondents).
• To create an enabling environment, the government should develop a clear roadmap for private sector involvement in climate policy, integrate climate considerations into public procurement, and support the development of the capital market for long-term financial products.

APA

Steeves, J., Fayolle, V., Odianose, S., Rai, N., & Soanes, M. (2016). Building Readiness of the Private Sector in Bangladesh for GCF Accreditation. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2016/06/Private-sector-engagement-in-climate-change-action-in-Bangladesh-creating-an-enabling-environment.pdf

Chicago

Steeves, Jennifer, Virginie Fayolle, Serena Odianose, Neha Rai, and Marek Soanes. Building Readiness of the Private Sector in Bangladesh for GCF Accreditation. Climate and Development Knowledge Network, 2016. http://cdkn.org/wp-content/uploads/2016/06/Private-sector-engagement-in-climate-change-action-in-Bangladesh-creating-an-enabling-environment.pdf.

Wikipedia

{{cite report |last1=Steeves |first1=Jennifer |last2=Fayolle |first2=Virginie |last3=Odianose |first3=Serena |last4=Rai |first4=Neha |last5=Soanes |first5=Marek |title=Building Readiness of the Private Sector in Bangladesh for GCF Accreditation |publisher=Climate and Development Knowledge Network |date=2016 |url=http://cdkn.org/wp-content/uploads/2016/06/Private-sector-engagement-in-climate-change-action-in-Bangladesh-creating-an-enabling-environment.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{steeves2016building, author = {Steeves, Jennifer and Fayolle, Virginie and Odianose, Serena and Rai, Neha and Soanes, Marek}, title = {{Building Readiness of the Private Sector in Bangladesh for GCF Accreditation}}, institution = {Climate and Development Knowledge Network}, year = {2016}, url = {http://cdkn.org/wp-content/uploads/2016/06/Private-sector-engagement-in-climate-change-action-in-Bangladesh-creating-an-enabling-environment.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }