The Adaptation Fund Board has approved the Green, Resilient, and Adaptive CHT Economy (GRACE) – Local Climate Adaptive Living Facility (LoCALplus) project, marking a major step forward in addressing climate challenges in Bangladesh's Chattogram Hill Tracts (CHT).
The $10 million project aims to bolster climate resilience in one of the country's most ecologically vulnerable regions, home to diverse ethnic communities. The International Centre for Integrated Mountain Development (ICIMOD), a regional implementing entity, stated that the project will help the CHT's hill communities adapt to climate change through innovative, locally driven solutions.
CHT Affairs Adviser Supradip Chakma said, "The GRACE project will empower local governments and CHT residents, enabling them to pursue a resilient future through inclusive governance and nature-based solutions aligned with the Sustainable Development Goals (SDGs)."
The project will deploy a range of interventions, including climate-resilient infrastructure, restoration of drying springs, and sustainable agriculture methods tailored to the region's challenging terrain. It will also address water scarcity through retention ponds and groundwater recharge systems, benefitting 25 upazilas initially, with plans to expand to 10 more.
Syeda Rizwana Hasan, Adviser for Environment, Forests, Climate Change, and Water Resources, described the initiative as transformative. "This project represents a meaningful investment in climate resilience while safeguarding the dignity, rights, and well-being of ethnic minorities in the region," she said.
GRACE will also enhance the capacity of local governments, women, and youth to engage in climate-resilient development and disaster risk planning. To ensure equitable distribution of climate finance, the project will implement performance-based resilience grants via the LoCAL mechanism.
ICIMOD Director General Pema Gyamtsho highlighted the project's alignment with Bangladesh's National Adaptation Plan (NAP), which identifies CHT as a "climate-stressed" area. "This initiative exemplifies ICIMOD's commitment to providing science-based, locally led solutions that empower mountain communities," Gyamtsho said.
The Ministry of Environment, Forest, and Climate Change (MoEFCC) will lead the project in partnership with ICIMOD, ensuring alignment with national priorities. The project underscores the importance of addressing climate vulnerabilities in CHT, a biodiversity hotspot critical to economic development and environmental protection.