IFAD approves $51.4m co-financing for GREEN project

The Executive Board of the International Fund for Agricultural Development (IFAD) approved US$51.4 million in financing as its contribution to a $211.7 million project in Bangladesh during its 146th session held on December 9-10, according to a press release. The new investment aims to strengthen food security, enhance climate resilience, and promote rural entrepreneurship for approximately 1.1 million people living in some of the country’s most climate-vulnerable regions. Named the Growth for Climate-Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project, it will be implemented over six years, from 2026 to 2031, across the haor wetlands, coastal belt, High Barind, and river char regions.

By supporting smallholder farmers, rural microenterprises, and young entrepreneurs, the project seeks to build adaptive capacity to climate change, foster diversified and resilient livelihoods, and accelerate the development of sustainable rural enterprises. The Financial Institutions Division of the Ministry of Finance will execute the project, while implementation will be handled by the Palli Karma-Sahayak Foundation (PKSF). Strategic oversight will be provided by a national steering committee comprising the Finance Division, the Economic Relations Division, and PKSF, ensuring strong governance and alignment with national priorities. “The GREEN project builds on the long-standing partnership between IFAD and the government of Bangladesh, as well as our close collaboration with PKSF, to enhance rural livelihoods and expand income opportunities for small producers through inclusive, climate-aware financing and environmentally responsible growth,” said Valantine Achancho, IFAD country director for Bangladesh. He added, “This initiative represents a new generation of investment that links climate adaptation, agroecological practices, and market-responsive rural enterprises, creating pathways for rural communities to prosper while safeguarding their ecosystems.”

The project will scale up climate-smart practices across crops, livestock, and fisheries, introducing renewable energy solutions, efficient water-use technologies, organic farming methods, and small-scale processing. These measures aim to raise productivity, conserve natural resources, and promote healthier, more diverse diets. Through PKSF’s nationwide network, GREEN will expand access to affordable, climate-informed financial services for women, youth, and microenterprises, enabling small producers to adopt sustainable technologies, strengthen value chains, and create rural jobs. GREEN will also strengthen institutional capacity and deepen policy engagement. By collaborating closely with the Ministry of Finance and the Ministry of Environment, Forest and Climate Change, the project will support the integration of climate adaptation, nutrition, and gender equality into rural finance and development planning. By linking climate action with entrepreneurship and inclusive finance, GREEN will contribute directly to the government’s Eighth Five-Year Plan, National Adaptation Plan, Nationally Determined Contributions, and Delta Plan 2100, while advancing progress toward the Sustainable Development Goals, particularly No Poverty, Zero Hunger, Gender Equality, Reduced Inequalities, and Climate Action. The investment forms part of IFAD’s broader commitment to supporting countries across the Asia-Pacific region by building climate-resilient food systems and inclusive rural economies, ensuring vulnerable communities are better prepared to face future shocks and seize emerging opportunities.