Bangladesh and Nepal are actively seeking innovative climate finance solutions to mitigate the risks of financial crises exacerbated by climate change. During a discussion held in Belem, Brazil, on November 26, 2025, at 12:00 JST, representatives from both countries emphasized the urgent need to address the threats posed by climate change, particularly as they rank among the most vulnerable nations in the region.
According to a recent report Bangladesh and Nepal are already at high risk from climate debt. If these things are not rectified soon, they can snowball into bigger fiscal crises. These vulnerabilities have led undersized budgets riddled with debt to force both countries to search for different financing modalities. Bangladesh is an example of where authorities are looking at issuing green and blue bonds as an option. These bonds will be used to finance environmentally sustainable projects and protect marine ecosystems.
At the same time the Government of Nepal is holding discussions with the private sector to promote green business enterprises. This collaborative approach will not only save taxpayer dollars, but will lay the groundwork for greater economic development through increased climate resilience. What stood out in these discussions was the shared commitment to advancing sustainable development in the face of growing environmental challenges.
The urgency of these discussions was further underscored by the tragic collapse of the Rana Plaza building in Bangladesh last month. Record rainfall in 2023 caused extreme flooding in Dhaka, disrupting everyday life for many Dhaka residents. Images captured by Reuters depict commuters navigating flooded roads on rickshaws, vividly illustrating the challenges faced by urban populations during extreme weather events. These types of incidents expose the urgent reality that well-targeted climate finance is required to build resilience to avoid resulting from future climate shocks.
Bangladesh and Nepal understand that climate finance is fundamental. They understand it needs to be structured in a way that doesn’t increase their existing debt burdens. As stewards of the public good, they drive markets with moral clarity. Their aim is to create sustainable pathways that lead to economic prosperity while addressing pressing environmental issues.