The Adaptation Fund Board has approved the Green, Resilient, and Adaptive CHT Economy (GRACE) project, a significant step forward in climate adaptation in Bangladesh.

The project will use US$ 10 million funding to help the most vulnerable hill communities in the Chattogram Hill Tracts (CHT) become more resilient to climate change.

"The GRACE project marks a pivotal chapter for the Chattogram Hill Tracts - an ecologically rich yet acutely vulnerable region of Bangladesh. This transformative initiative opens the door to meaningful investment in climate resilience while upholding the dignity, rights, and well-being of the ethnic minorities inhabiting this area," Environment, Forest and Climate Change Adviser Syeda Rizwana Hasan said.

"We deeply appreciate the approval of the Adaptation Fund's US$ 10 million investment, which is evidence of Bangladesh's national leadership in climate adaptation," Bangladesh's Chittagong Hill Tracts Affairs Adviser Supradip Chakma said.

He said the GRACE Project will enable local governments and empower the CHT dwellers for a resilient future founded on inclusive governance and Nature-based Solutions aligned with SDGs in the CHT.

The GRACE project will provide extensive nature-based and community-driven climate adaptation strategies throughout the Rangamati, Khagrachari and Bandarban districts, Bangladesh Country Focal Point at Kathmandu-based International Centre for Integrated Mountain Development (ICIMOD) Kabir Uddin said.

The project will help to establish climate-resilient infrastructure, improve retention ponds, restore springs and groundwater recharge systems in water-scarce upazilas, he said.

Kabir Uddin, also the GRACE project lead, said the initiative will promote sustainable land utilisation by applying climate-resilient agriculture methods suited to the region's unique topography.

Additionally, he said, the project will improve the capacity of local governments, women, and youth to actively participate in climate-resilient development, disaster risk mitigation, and adaptation planning.

To ensure that climate finance is distributed effectively and fairly at the local level, the interventions will be implemented through the 'Local Climate Adaptive Living Facility' (LoCAL) mechanism, providing performance-based climate resilience grants.

The GRACE project will be directly supported in 25 upazilas during its first phase, later expanding to cover the remaining 10 upazilas of the CHT, an ICIMOD press release said today.

This project will make use of performance-based climate resilience subsidies managed through government frameworks inspired by the LoCAL concept. This approach will ensure a fair distribution of resources, promote transparency, and support continuous oversight from institutions.

The GRACE project is spearheaded by the Ministry of Environment, Forest and Climate Change (MoEFCC), Bangladesh, as the official Designated Authority (DA) for the Adaptation Fund.

The ICIMOD is the regional implementing entity. The MoEFCC, coordinating with ICIMOD, ensured that the GRACE Project is aligned with Bangladesh's priorities and strategies for the Chattogram Hill Tracts (CHT).

It will facilitate the execution of Bangladesh's National Adaptation Plan (NAP) via Nature-based Solutions and inclusive community-driven adaptation initiatives.

"ICIMOD's mission is to provide science-based, locally led solutions to mountain communities, which is exemplified by the GRACE initiative. In collaboration with the Government of Bangladesh, we are dedicated to developing climate resilience that empowers the community and safeguards ecosystems in CHT, Bangladesh," ICIMOD Director General Dr Pema Gyamtsho said.

The GRACE project is being implemented by ICIMOD in partnership with Bangladesh's Ministry of Environment, Forest and Climate Change, the Ministry of Chittagong Hill Tracts Affairs, Local Government Division, Chittagong Hill Tracts Development Board (CHTDB), and three Hill District Councils in collaboration with the United Nations Capital Development Fund (UNCDF).

The beautiful landscape of the CHT in Bangladesh is a biodiversity hotspot, providing essential ecosystem services for economic development, environmental protection, and human wellbeing, and is home to diverse ethnic minorities communities. However, the region was identified as one of the country's 'climate stress areas' in Bangladesh's recent National Adaptation Plan (NAP).