Chapter 6 | PROJECTS
In practical terms, Eastern Bank’s portfolio of loans for agri- culture, green projects and SMEs will grow, supporting more projects that improve food security and climate adaptation capacity. By targeting women-led enterprises, the project also advances gender inclusion in economic opportunities. These outcomes align with several Sustainable Development Goals, notably SDG 2 – Zero Hunger, SDG 5 – Gender Equality, SDG 7 – Affordable and Clean Energy, SDG 8 – Decent Work and Economic Growth and SDG 13 – Climate Action.
plans to support for green energy projects, which aligns with SDG 7 – Affordable and Clean Energy and explicitly refers to support for “green energy projects.” Therefore, part of the financing directly supports climate change mitigation.
The project document also presents a clear analysis of Bangladesh’s vulnerability to climate change and the need to address it including via adaptation and agricultural finance.
Part of the OPEC Fund financing is therefore expected to be on-lent for adaptation purposes, establishing a clear link between project activities and the intent to reduce climate vulnerability. In the absence of detailed cost breakdowns, it is assumed that the financing will be equally allocated among the loan’s three objectives: food security, climate action and SME development. In other words, US$11.7 million of the total loan is attributed to climate action. With no further information on the internal split between mitigation and adaptation a 50/50 division is applied, resulting in US$5.8 million counted as mitigation finance and US$5.8 million as adaptation finance.
Assessment according to the Joint MDB Methodology for Tracking Climate Finance
The OPEC Fund is financing both mitigation and adaptation activities through its loan to Eastern Bank.
Climate action is one of the three stated objectives of the OPEC Fund loan, along with supporting food security and SMEs, including women-led SMEs in Bangladesh. According to the approval documentation, “the proposal is for a US$35 million senior loan to Eastern Bank to support food security, climate action projects, and SMEs, including women-led SMEs in Bangladesh.” For example, the loan
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