Disparity mars Bangladesh’s climate finance allocation: Study

A recent study has revealed significant disparities in the distribution of Bangladesh's national climate budget, sparking calls for systemic reform to ensure justice for all climate-vulnerable communities across the country.

The findings were shared during an event titled "Distributive Justice in Bangladesh's Climate Finance: Challenges and Recommendations for Policy Takeaways," organised by the Centre for Participatory Research and Development (CPRD) and the aid organisation HEKS/EPER at the Six Seasons Hotel in Dhaka on Saturday.

The research was conducted across five districts – Dinajpur, Thakurgaon, Chapainawabganj, Naogaon, and Kurigram. It investigated the, analysing whether projects were approved based on climate change rationale and geographical equity. 

Findings from the study, which analysed 790 Bangladesh Climate Change Trust Fund (BCCTF) projects from FY 2008-2009 to FY 2022-2023, and the national climate budget, highlighted an alarming lack of distributive justice. 

The Rajshahi and Rangpur divisions, home to some of the most climate-stressed areas, implemented only 143 BCCTF projects during this period. This figure is less than half the 281 projects executed in Bangladesh's coastal regions. Similarly, only 63 projects under the National Climate Budget were found to be under implementation in these drought-hit areas during FY 2022-2023.

Moreover, the study uncovered a strong bias in climate finance towards infrastructure development and sudden disaster responses, with little attention paid to slow-onset disasters like drought. Over 50% of BCCTF projects, valued at Tk2,095.41 crore, were directed towards infrastructure. In contrast, only seven projects worth Tk32.24 crore were allocated to integrated disaster management.

Presenting the findings, CPRD's Chief Executive Md Shamsudohha emphasised the need for a systemic overhaul of the Climate Change Trust Act 2010 and urged for the development of outcome-focused allocation criteria in both the Bangladesh Climate Change Trust Fund and the national climate budget. 

Corinne Henchoz Pignani, deputy head of mission at the Embassy of Switzerland in Bangladesh, praised the study for shedding light on under-discussed issues. "While infrastructure is crucial, humanity and localised approaches must be at the centre of climate finance strategies," she said.

Dora Chaudhuri, country director of HEKS/EPER, acknowledged that despite Bangladesh's strong policy framework, achieving climate resilience remains challenging due to systemic and procedural barriers. 

Barrister Shameem Haider Patwary, former MP; Iqbal Abdullah Harun, additional secretary of the Ministry of Environment, Forest and Climate Change; and M Zakir Hossain Khan, chief executive of Change Initiative, among others, were present.