$10M GRACE Project Approved to Boost Climate Resilience in CHT

The Adaptation Fund Board has approved a $10 million initiative to bolster climate resilience in the Chattogram Hill Tracts (CHT), one of Bangladesh's most ecologically significant yet climate-vulnerable regions. The Green, Resilient, and Adaptive CHT Economy (GRACE) project marks a transformative step in ensuring sustainable development and inclusive climate adaptation for the region’s ethnic minority communities.

Environment, Forest and Climate Change Adviser Syeda Rizwana Hasan described the project as a turning point:

    “The GRACE project opens the door to meaningful climate investment in the CHT while upholding the dignity, rights, and well-being of the indigenous communities.”

Chittagong Hill Tracts Affairs Adviser Supradip Chakma echoed this sentiment, highlighting the importance of local empowerment:

    “This project will equip local governments and communities with the tools for a resilient future through inclusive governance and nature-based solutions aligned with the Sustainable Development Goals (SDGs).”

The GRACE project will implement a broad range of nature-based, community-driven adaptation strategies across Rangamati, Khagrachari, and Bandarban districts. These include:

    Building climate-resilient infrastructure

    Restoring springs and groundwater recharge systems in water-stressed areas

    Improving retention ponds

    Promoting climate-resilient agriculture tailored to the region's hilly terrain

Project Lead and Bangladesh Country Focal Point for ICIMOD, Dr. Kabir Uddin, emphasized the initiative's focus on sustainable land use and grassroots participation:

    “The project will strengthen local government capacities and engage women and youth in climate planning and disaster risk mitigation.”

To ensure transparent and effective deployment of climate finance, GRACE will utilize the Local Climate Adaptive Living Facility (LoCAL) mechanism—delivering performance-based grants for local climate resilience.

In its first phase, the project will operate in 25 upazilas, with plans to expand across all 35 upazilas of the CHT.

The initiative is spearheaded by Bangladesh’s Ministry of Environment, Forest and Climate Change (MoEFCC)—the official Designated Authority for the Adaptation Fund—and implemented by the International Centre for Integrated Mountain Development (ICIMOD) in partnership with:

    Ministry of Chittagong Hill Tracts Affairs

    Local Government Division

    Chittagong Hill Tracts Development Board (CHTDB)

    The three Hill District Councils

    United Nations Capital Development Fund (UNCDF)

Dr. Pema Gyamtsho, Director General of ICIMOD, emphasized the strategic importance of the GRACE initiative:

    “This project reflects ICIMOD’s commitment to science-based, locally led solutions. In partnership with the Government of Bangladesh, we aim to strengthen community resilience and safeguard the CHT’s fragile ecosystems.”

The Chattogram Hill Tracts, a recognized biodiversity hotspot, are critical for environmental protection, economic development, and the well-being of its diverse ethnic communities. Identified in Bangladesh’s National Adaptation Plan (NAP) as a climate stress zone, the region now stands to benefit from this comprehensive, equity-driven adaptation program.