In a compelling address at the World Economic Forum’s Annual Meeting of the New Champions in Dalian, China, Bangladesh’s Prime Minister Tariq Rahman emphasized the urgent need for accelerated climate finance. He highlighted that the current global target of $300 billion per year by 2035 is insufficient to meet the needs of developing countries facing severe climate impacts.
Prime Minister Rahman’s remarks come as the world prepares for the upcoming United Nations climate negotiations in November. Bangladesh, one of the most climate-vulnerable countries, is seeking international support to fund projects that address rising water levels, cyclones, river erosion, and saltwater intrusion. The country is also pursuing an ambitious domestic climate plan to enhance its resilience.
Bangladesh’s call for increased climate finance
The Prime Minister urged wealthy nations to honor their climate commitments and increase funding for vulnerable regions. He noted that the $300 billion pledge made at the United Nations summit in 2026 is not enough to meet the mitigation and adaptation requirements of developing countries. Rahman called for greater mobilization of the UN Green Climate Fund and urged governments to make climate finance more accessible.
“The Loss and Damage Fund must move from promises to practical action, providing affordable and predictable support for the affected countries,” Rahman stated. He emphasized that adaptation measures, crucial for countries like Bangladesh, must be linked to efforts to reduce emissions. The Prime Minister pointed to domestic initiatives such as clearing 20,000 kilometers of rivers and canals to reduce floods and planting 250 million trees.
The Vulnerability to Viability (V2V) Compact
In a parallel development, the world’s most climate-vulnerable nations and major development banks launched the Vulnerability to Viability (V2V) Compact. This initiative aims to unlock cheaper and more predictable funding for countries facing climate shocks and rising debt costs. The Compact brings together 74 economies and more than a dozen multilateral lenders, including the World Bank and the OPEC Fund.
The V2V Compact focuses on affordable and concessional finance, mobilizing private capital, and developing shock-responsive financing. It prioritizes investment in water, education, and health systems, which are essential for human security. Barbados Prime Minister Mia Mottley, a long-time driver of the initiative, highlighted the injustice of debt repayment terms for essential services like sanitation systems, schools, and hospitals.
Global partnerships for climate resilience
Prime Minister Rahman concluded his address by emphasizing the importance of global partnerships in finance, technology, and joint action. He stated, “Climate resilience cannot be built by one country alone.” This sentiment was echoed in the V2V Compact, which underscores the need for coordinated international efforts to strengthen climate resilience and adaptation for countries facing the gravest risks.
The V2V Compact is set to lay out further details, including potential financing targets and mechanisms, in a white paper to be presented at the World Bank and IMF’s annual meetings in Thailand in mid-October. The countries and development banks involved are committed to using concessional resources strategically and catalytically, continuing coordination to address the financing gaps left by years of global crises.
