Bangladesh has developed significantly over the last decade and positioned itself as a major player in the global trade landscape, but it is highly susceptible to climate-induced disasters that can disrupt trade. While climate change exacerbates the frequency and severity of natural disasters, Bangladesh’s forthcoming graduation from the United Nations’ Least Developed Country (LDC) status will result in the loss of preferential trade arrangements, including duty-free, quota-free (DFQF) market access, which will further increase trade expenditure.

A new technical paper from Fahmida Khatun, Afrin Mahbub and Anindita Islam for the Task Force on Climate, Development and the International Financial Architecture evaluates the effect of integrating climate-resilient infrastructure on Bangladesh’s trade costs. By exploring the role of climate-resilient infrastructure in mitigating physical vulnerabilities, the paper seeks to highlight its potential to secure trade flows and limit trade costs amid climate change and the immediate LDC graduation.

Authors: Fahmida Khatun, Afrin Mahbub and Anindita Islam
Publication period: October 2026