France’s AFD to Provide €100 Million Loan for Bangladesh’s Climate Policy in 2027

The French Development Agency (Agence Française de Développement—AFD) will provide Bangladesh with a €100 million loan in 2027 to support its climate policy. The agency has also announced €40 million in assistance for the water supply and sanitation sector in 2028.

The future financing roadmap was announced at the seventh annual consultation meeting between the Bangladesh government and AFD, held in Paris.

The meeting took place on November 9 and 10 at AFD's headquarters in France. Both sides reviewed their existing cooperation, progress on ongoing projects and various strategic issues. They also discussed ongoing and proposed projects for future financing in line with the government's new development programmes and priorities.

During the meeting, both sides signed an amendment to the agreement on the Expertise and Capacity Building Fund (FERC).

They also discussed expanding cooperation into new strategic areas during 2029–30, including technical and vocational education and training (TVET), skills development and non-sovereign-guaranteed financing.

The Bangladesh delegation highlighted the country's Fifth Five-Year Strategic Development and Reform Framework (2026–2031) and the government's ongoing development priorities.

Particular emphasis was placed on the need for financial and technical assistance in macroeconomic stability, capital market development, skills enhancement, employment generation, river restoration, climate resilience, low-carbon infrastructure and renewable energy.

Policy-based lending and balanced regional growth were also among the key issues discussed.

AFD expressed support for Bangladesh's development priorities, saying the country's needs were aligned with its strategic plans. The agency reaffirmed its interest in continuing cooperation in these areas.

The AFD Group also pledged to work on specific programmes related to climate change and adaptation through various financing mechanisms and expert assistance to strengthen Bangladesh's climate resilience.

One of Bangladesh's key development financing partners, AFD currently has 12 ongoing projects in the country, with total committed funding of $1,754.81 million, equivalent to €1,484.76 million.

Of the total commitment, $1,736.19 million is in loans and $18.62 million in grants.

The meeting was co-chaired by Bangladesh Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and Cyril Bellier, Head of AFD's Europe, Middle East and Asia Department.

AFD Country Director Cynthia Melas, senior officials of the agency and representatives from various levels of the Bangladesh government also attended the meeting.