Bangladesh and Nepal have been stepping up to address the urgent challenges of climate change head-on. They’re committed to ensuring that these growing challenges don’t result in economic crises in their countries. Recent findings indicate that these countries, among the most vulnerable in the region, face significant risks related to climate debt. As they grapple with the potential economic repercussions of climate-related disasters, both nations are exploring innovative finance mechanisms and engaging with the private sector.
A new report published just last week, put additional focus on the increased climate debt risk Bangladesh and Nepal are currently facing. Bangladesh is already moving to address this disturbing trend. To finance their ambitious agenda, they are looking at issuing green and blue bonds to raise capital for sustainable projects. Green bonds are debt instruments that fund projects with positive environmental impacts. While blue bonds are targeted to ocean-related projects, the two bond instruments combined represent a key tool in the global climate adaptation toolkit.
In Kathmandu, an ongoing dialogue with the private sector is helping to create opportunities for environmentally-focused business development. These discussions are only a start. More importantly, their goal is to turn those practices into sustainable habits that will stand up to the effects of climate change. With a focus on building resilience, Nepal seeks to leverage support from various stakeholders to bolster its climate action strategies.
The latest flooding in Dhaka, Bangladesh, served as a rallying cry for immediate action on these issues. This flood that began March 20, 2023, was from record-breaking rainfall. The floods hit urban daily commuters hard in midsize cities like Surat, especially those dependent on rickshaws threading through the water-logged lanes. The photos Reuters took during this event show in startling detail the threats residents are confronting on a daily basis. Now they have to fight against worsening extreme weather trends.
Both countries are becoming increasingly aware that climate change is a serious threat not just to their ecosystems, but their economies. Today, South Asia is one of the most impacted regions by climate change, dealing with issues like inconsistent rainfall and sea level rise. In turn, both Bangladesh and Nepal are exploring new strategies to safeguard their economic security and pave the way for a sustainable future.