Green Climate Fund increasing debt burden on Bangladesh by providing more loans than grants: TIB
Of the 154 countries recognised as 'fundable' by the GCF, 25 have not received any funding for projects, the TIB said in a press conference in its office in Dhanmondi, adding that more than half of those countries are in the Asia-Pacific region.
The Green Climate Fund (GCF) is increasing a debt burden on vulnerable countries, including Bangladesh, with its profit-oriented approach by providing more loans than grants, the Transparency International Bangladesh said today (14 May).
Of the 154 countries recognised as "fundable" by the GCF, 25 have not received any funding for projects, the TIB said in a press conference at its office in Dhanmondi, adding that more than half of those countries are in the Asia-Pacific region.
The civil society organisation also said out of 96 "particularly vulnerable" countries, eight have not received funding for any projects.
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Speaking at the event, TIB Executive Director Iftekharuzzaman said, "The GCF has failed to finance countries affected by climate change. We cannot remain silent when the transparency and ethics of this organisation are violated."
He also said the affected countries are not getting the benefits that they are supposed to get.
"The GCF provides more grants to international organisations, while giving more loans to affected countries like Bangladesh… They are providing more investment-based funds than grants. These countries are burdened with debt due to their profit-oriented thinking."
The global fund is providing more money to developed countries, he said.
"It's like carrying coals to Newcastle. They're funding corrupt organisations."
Iftekhar also complained that organisations like the World Bank, United Nations Development Programme, and International Monetary Fund are getting more money from the fund.
At the press conference, TIB researchers Newazul Moula and Shahidul Islam presented a report titled "Accessibility of vulnerable countries like Bangladesh to the Green Climate Fund: Challenges of good governance and ways to overcome".
The GCF is mandated to invest 50% of its resources to mitigation and 50% to adaptation in grant equivalent. At least half of its adaptation resources must be invested in the most climate vulnerable countries.
According to the TIB, the fund has failed to achieve this target in the last eight years.
The TIB complained that the GCF was showing more interest in approving grants for adaptability related projects.
So far, it has approved $3.5 billion, which accounts for 25.8% of the total disbursement, for adaptation projects alone.
The TIB further stated that most of the funding for adaptation in vulnerable countries was implemented through international organisations. "National institutions were not given priority."
The agency alleged that in Bangladesh, only 13.3% of the total sanctioned amount has been released for nine projects.
Of the projects, only the first instalment has disbursed after three long years of sanctioning for one project.
Delays in disbursements also lead to delays in project implementation. As a result, climate risk has increased in the project area, said the TIB.
Bangladesh received only $1,189.5 million or only 9.9% against the need of at least $12,000 million in the medium term till 2025 to combat climate change.
