ECODIT conducted the “Bangladesh Environment Sector Assessment and Strategic Analysis” to (1) identify the overall needs of the Bangladesh environment sector, (2) assess USAID’s comparative advantage, and (3) propose programmatic options given various funding levels to match with the Mission’s overarching comparative advantage and goal of promoting responsible, pro-poor and equitable economic growth. An additional objective was to assist the Arannayk Foundation (Bangladesh Tropical Forest Conservation Foundation) to develop a program strategy. An underlying theme of the entire Assessment was climate change, and mitigation options and adaptation strategies were examined. The resulting report is based on review of the extensive literature on environmental issues in Bangladesh, interviews with government officials at all levels and with donor and NGO representatives, and field trips to four areas representative of environmental, natural resources management and global climate change issues in the country.  Over the course of two and half months of fieldwork, the ECODIT team visited approximately 10 forest Protected Areas (PAs) and three wetland areas.The team outlined a number of specific program options and potential intervention areas for the USAID Bangladesh Mission including the following: (1) Structural reform, including eliminating perverse incentives, environmental fiscal reform, and co-financing the Multi-Donor Trust fund,(2) Institutional capacity and coordination, including partnering with leading donors who have a strong interest in structural reform to mobilize national political will,development of sector strategies to operationalize the Bangladesh Climate Change Strategy and Action Plan,(3) Carbon Financing, including supporting the assessment of the capacity and institutional needs to attract carbon financing, especially the key issue of credibility,and, improve access to the numerous carbon fund,and (4) Forests, providing co-financing to support a major program on capacity building for the forest sector,assessing opportunities to minimize corruption,improving data collection and analysis and informed decision-making,and, strengthening capacity to implement and manage multi-disciplinary approaches. The report outlines important recommendations for fisheries, park management and PA governance.