We have discussed climate change for years. We have drafted policies, adopted plans and made international commitments. But a more important question now confronts us: how prepared are we, in practice, to deal with the risks that climate change is creating for Bangladesh’s economy, industry, agriculture, employment and daily life?

The question, I believe, no longer belongs to the environment ministry alone. It belongs to the finance ministry, the industry ministry, the agriculture ministry and the energy sector; to banks and financial institutions; and, above all, to our private sector.

Private enterprise and market-oriented reform have played an important part in Bangladesh’s economic progress. Policy changes to encourage private initiative began under President Ziaur Rahman. After Prime Minister Khaleda Zia’s government took office in 1991, market-oriented economic reforms, private investment and efforts to create a business-friendly environment gathered momentum. The continuity of policies and initiatives under different governments has made Bangladesh’s economy more open and competitive.

Our agricultural production has risen. The ready-made garment industry has secured a strong position in international markets. Remittances and exports have carried the economy forward. But if those gains are to be sustained, the way we pursue development must change. An economy that is repeatedly damaged by climate shocks cannot enjoy secure long-term growth.

Climate change does not always inflict damage through a major disaster. Extreme heat reduces workers’ productivity. Irregular rainfall ruins farmers’ crops. Salinity puts pressure on farmland and drinking water. Floods disrupt factories, roads and supply systems. According to the IMF, natural disasters in Bangladesh between 2000 and 2023 caused estimated damage of $13.6 billion. That figure carries an important lesson. We will have to spend on reconstruction after disasters. But we must also calculate how much damage can be avoided by preparing before they strike.

For me, the essence of economic restructuring is this: climate risk cannot be left outside development planning. It has to be considered within every major economic decision.

Economic stability and energy security

Bangladesh’s economy is currently passing through a range of challenges. Growth has slowed, inflation has risen, investment is constrained and the energy sector is under pressure. In its October 6 update, the World Bank projected growth of 3.4 percent for the 2025–26 and 2026–27 fiscal years. That is a forecast, not a final figure. But it is a reminder that we need to strengthen the economy’s resilience further.

Climate risk can add to these economic pressures. If floods cut agricultural output, food prices may rise. If transport links are disrupted, transport costs may rise. If production in industrial areas halts, exports and jobs may suffer. Climate risk, in other words, does not stay confined to a single sector. It spreads gradually through the whole economy.

When planning large infrastructure projects, industrial zones, power plants, ports and transport systems, construction costs alone will not do. Their capacity to withstand future floods, heatwaves, cyclones and water shortages must also be taken into account.

If investing somewhat more today can avert major losses in future, that is not an extra cost but a long-term economic saving. The energy sector also needs a new approach. The cost of energy imports, pressure on foreign exchange and volatility in international markets are all major challenges for our economy. We must therefore raise energy efficiency and harness the potential of domestic renewable energy.

In factories, energy-saving motors, modern boilers, improved air-conditioning, waste heat recovery and regular energy audits can reduce production costs. Rooftop solar installations and efforts to cut electricity waste should also be expanded.

According to data published by the Sustainable and Renewable Energy Development Authority, renewable energy accounted for 5.24 percent of Bangladesh’s total final energy consumption in 2025. That reminds us that alongside increasing the use of renewable energy, we must improve its efficiency. But industry cannot be asked to meet new environmental conditions alone. Technological change costs money, requires a skilled workforce and needs assured investment. Government, banks, financial institutions and industrial entrepreneurs must therefore work together.

Our goal should be an industrial system in which production costs fall, energy waste falls and competitiveness in international markets rises.

Food security and the rural economy

Agriculture is another important foundation of our economy. It is not merely a sector for food production; rural employment, poverty reduction, market stability and social security are all bound up with it. Coastal areas face salinity and cyclone risks. In haor areas, flash floods can destroy crops. Excessive rain in some places, water shortages in others and prolonged heatwaves elsewhere are making farming difficult.

Agricultural policy must therefore not be confined to raising output. Systems have to be built so that farmers can maintain production even in adverse weather. That means region-specific saline- and drought-tolerant crop varieties, water-saving irrigation, reliable weather forecasting, storage facilities for farm produce, better market systems and easy finance for farmers. At the same time, private investment needs to grow in agro-processing, cold storage, modern supply chains and agricultural technology. Farmers’ incomes will rise, food waste will subsequently fall and new jobs will be created in rural areas.

Crop insurance for farmers, easier loan restructuring after disasters and targeted social protection also deserve consideration. We do not want a farmer driven repeatedly into debt by climate risk, a family to lose its food security, or a region to fall behind the mainstream of development. Agriculture, food, water and social protection must therefore be treated as parts of a single, integrated plan.

Export competitiveness and the future of jobs

We also need to be realistic about the future of Bangladesh’s export-oriented industries.

The ready-made garment industry is a major strength of our economy. It has created work for vast numbers of people and played an important part in women’s economic participation in particular. But the terms of competition in international markets are shifting. Many buyers now weigh more than price, quality and delivery times. How much energy went into production, how water was managed and how waste was treated have all become important.

This change should not be seen only as an obstacle. Investment in cleaner production, water recycling, energy efficiency and waste management can lower operating costs. It can also build buyers’ confidence and open up new markets. But the transition is not easy for small and medium-sized industries. They need soft loans, technical support, sector-specific training and shared effluent treatment infrastructure. The employment opportunities created by a green economy should be seized as well. Demand for skilled workers is likely to grow in installing and maintaining solar power, energy auditing, water management, waste recycling and climate-resilient construction. Technical institutes, universities, entrepreneurs and training bodies must work together to meet it, and training must be tied to the actual needs of the labour market.

Where technological change alters the nature of work, existing workers must be offered retraining and social protection. We want development in which the environment is protected, industry is more competitive and workers’ lives and livelihoods are more secure.

COP31: From international pledges to implementation

The UN climate conference COP31 will be held in Antalya, Turkey, from November 9 to 20. For a climate-vulnerable country such as Bangladesh, the conference is critically important on international cooperation, adaptation and climate finance. Our expectation is that international climate commitments translate into real finance, technology transfer and effective adaptation programmes. New pledges alone will not suffice. There must also be clarity on when the money will arrive, on what terms and which projects it will reach.

Bangladesh submitted its third Nationally Determined Contribution (NDC 3.0) in September 2025. It commits to cutting greenhouse gas emissions by 20.31 percent by 2035 compared with business as usual. Meeting that target will require investment of about $116.18 billion over the 2026–35 period: $25.95 billion from domestic resources and $90.23 billion in international climate finance. Those figures show both the scale of the task and the importance of international cooperation.

Bangladesh’s position at COP31 should be clear, realistic and focused on results. We will take effective action ourselves. International partners must also honour their responsibilities on fair finance, technology transfer and capacity building.

We must press in particular for adaptation finance, long-term concessional funding, cooperation on loss and damage, and investment in climate-resilient infrastructure. The aim should be to turn international commitments into projects whose benefits reach farmers, workers, entrepreneurs and vulnerable communities directly.

Climate budget: From allocation to results

The question now is what we do at home while international negotiations proceed. The proposed climate-related budget for the 2026–27 financial year proposes an allocation of BDT 517.46 billion for 25 ministries and divisions. That is an important allocation. But the headline figure is not the final measure of success. We also need to know how effectively the money is being spent, how many livelihoods it is protecting and how much future damage it is averting.

My proposal is that the implementation and results measurement of the climate budget be strengthened. Climate risk assessment should be given due weight in large public projects. Investment should be prioritised in climate-resilient roads, water management, agriculture, urban infrastructure and industrial zones. Alongside public money, systems must be created to attract private investment.

I would like to put forward five practical proposals.

First, climate risk must be built into the planning and appraisal of large public and private investment projects.

Second, financing should be introduced that allows small and medium-sized enterprises to invest in energy efficiency, clean technology and climate-resilient infrastructure.

Third, spending under the climate budget, project progress and actual results should be regularly published and evaluated.

Fourth, banks and financial institutions should take account of a project’s climate risk and long-term resilience when assessing loans.

Fifth, universities, research institutions, entrepreneurs and the media should be brought in more effectively to evidence-based policymaking, technology development and accountability. Our aim should be not simply to know how much has been allocated but to assess regularly what that money has achieved.

The chance to strengthen the economy

If we treat climate change response purely as an environmental protection programme, a large part of its economic potential will escape us. If we count only growth and ignore environmental risk, that growth will be hard to sustain. We need an economy in which industry can produce more with less energy, farmers can hold output through adverse weather, exporters can meet new conditions in international markets, young people can acquire new skills and find work, and no family has to start from zero after a disaster. Three things deserve particular emphasis.

First, climate risk must be treated as economic risk in policy and planning.

Second, there must be meaningful coordination between public spending and private investment so that investment grows in clean technology, energy efficiency and climate-resilient infrastructure.

Third, the results of every initiative must be measured. Success should be judged not by how much money was allocated but by what that money changed in people’s lives, in production, in employment and in the economy.

I believe the challenges before Bangladesh are large, but the possibilities are no less. We have entrepreneurs, a hard-working labour force, experience in agriculture and long-accumulated knowledge of disaster response. What is needed now is to connect those strengths with modern technology, effective financing and clear policy.

Let this discussion not remain confined to a single event. Let practical proposals emerge from it, let cooperation between government and the business community grow, and let fresh momentum be created in building a climate-resilient economy. Our goal is not only to cope with the damage of climate change. It is to build a Bangladesh whose economy is more productive, whose industry is more competitive, whose employment is more inclusive and whose development is more sustainable.

Let us see climate risk not only as a crisis but as an opportunity to make Bangladesh’s economy more efficient, competitive and resilient. I call on government, the private sector, the media, researchers, development partners and civil society to work together to that end. My sincere thanks to you all.