Bangladesh Climate Change

Resilience Fund

STORY HIGHLIGHTS

Bangladesh is one of the most climate vulnerable countries in the world.

The country has invested heavily in adaptation measures. As a result, Bangladeshs

ability to manage disasters, in particular, floods and cyclones, has improved dramatically since
1991.

The Bangladesh Climate Change Resilience Fund (BCCRF) supports millions of

Bangladeshis to build resilience to the effects of climate change.

Bangladesh is one of the most climate vulnerable countries in the world. Rising global
temperatures are likely to increase the frequency and intensity of cyclones in the Bay of
Bengal as well as monsoon rainfall, resulting in catastrophic floods in the Ganges
Brahmaputra- Meghna Basin. Sea level rise and the consequent coastal flooding and saline
intrusion into aquifers constitute serious threats. The challenge of climate change
worsened /aggravated by the countrys high population density is significant in view of the
likely impact on peoples livelihoods. It also impacts on Bangladeshs capacity to improve its
medium-term growth performance and thereby lift some 55 million people out of poverty.
Over the last three decades, the country has invested heavily in adaptation measures. As a

result, Bangladeshs ability to manage disasters, in particular, floods and cyclones, has
improved dramatically since 1991. With a view to building a medium- to long-term program
for enhancing resilience to climate shocks and facilitating low carbon and sustainable
growth, Bangladesh launched its first Climate Change Strategy and Action Plan at the UKBangladesh Climate Change Conference in London in September, 2008. This was later
updated in 2009. In the wake of the London conference, a multi-donor trust fund for climate
change was proposed as a modality for the development partners to support Bangladesh in
implementing the Climate Change Strategy and Action Plan (CCSAP). Thus, the
Bangladesh Climate Change Resilience Fund (henceforth referred to as BCCRF), with
contribution from bilateral donors was set up in May 2010 following the signature of a
Memorandum of Understanding.
About the Bangladesh Climate Change Resilience Fund (BCCRF)
BCCRF was established in May 2010 with the signing of a Memorandum of Understanding
between the Government of Bangladesh, development partners and the World Bank. This
innovative mechanism is enabling the Government to channel US$ 170 million in grant
funds to millions of Bangladeshis in order to build their resilience to the effects of climate
change. The trust fund contribution from the development partners at present stands as
Denmark (US$1.2 million), the European Union (US$37 million), Sweden (US$13 million),
and the United Kingdom (US$95 million), Switzerland (US$ 3.4 million), AusAID ( US $ 7
million) and USAID (US $ 13 million). There are no special conditions attached to the
disbursement of the fund by the donors or by the World Bank. It is envisaged that 84.6% of
the total activities funded by the BCCRF will be implemented by Government institutions,
10% by NGOs and other civil society organizations under the community-based program
and 2% by the Bank to provide analytical work and technical assistance under CCSAPs
fourth and sixth pillars. The World Bank charges, in total, 3.4% for overall trust fund and
project management.
Distinctive role of the Government and the World Bank
BCCRF is managed and implemented by the Government of Bangladesh. A technical
assistance portion of the BCCRF is executed by the World Bank with agreement of the
Government of Bangladesh. On behalf of the contributing donors, and in consultation with
the Government, the World Bank is, for a limited duration, ensuring due diligence
requirements on the BCCRF (including fiduciary management, transparency and

accountability) and ensuring projects are implemented with due regard to economy,
efficiency and effectiveness.
Objective of the Fund
The objective of the Bangladesh Climate Change Resilience Fund (BCCRF) is to support
the implementation of Bangladeshs Climate Change Strategy and Action Plan (CCSAP).
The CCSAP has identified six main pillars:
(i) Food security, social safety and health;
(ii) Comprehensive disaster management;
(iii) Develop climate proof Infrastructure;
(iv) Research and knowledge management;
(v) Mitigation and low carbon development;
(vi) Capacity building.
How is BCCRF governed?
BCCRF has a two tier governance system: A Governing Council (it can be linked to an
excerpt on the functions of the GC copied from the implementation manual) which provides
overall strategic direction and guidance to BCCRF and ensures its alignment with the
CCSAP. The Management Committee (with a click will open to a page on the dynamics of
the MC copied from the Implementation manual) is responsible for the work programme,
ensuring that the BCCRF is implemented in line with the agreed implementation manual
and consider grant requests submitted by various line ministries and other eligible
institutions. Both the Governing Council and the Management Committee are chaired by the
Government and includes representatives from line ministries, Development Partners and
Civil Society.
As a start, the World Bank has been providing support to the day-to-day operations of the
BCCRF. However, this responsibility is gradually going to transition to a Secretariat that will

be established at the Ministry of Environment and Forests. The Bank team will work closely
with the Ministry of Environment and Forests to build the capacity of the Secretariat. The
Secretariat will be responsible for providing support to the Governing Council and
Management Committee, provide advocacy, communication and coordination support to all
agencies implementing activities funded by BCCRF.