Bangladesh stands at the crossroads. Rising sea levels, salinity intrusion, frequent cyclones, and flooding are no longer distant threats; they are realities confronting millions. According to government assessments, the country needs about US$12.5 billion annually, equivalent to nearly 3.0 per cent of its GDP, just to address escalating climate risks. Yet, despite its urgent needs, financing falls short of these requirements, threatening the resilience of communities and ecosystems.
Over the past decade, Bangladesh has mobilised resources from both national and international sources. On the one hand, the Bangladesh Climate Change Trust Fund (BCCTF), financed through domestic revenues, represents an inspiring example of government ownership and accountability. On the other hand, international mechanisms such as the Green Climate Fund and Adaptation Fund channel larger amounts of money, but often come with complex donor priorities and rigid conditions.
Unfortunately, these two streams of funding rarely work in harmony. Bangladesh requires about US$270 billion in foreign climate finance to fully realize its conditional Nationally Determined Contributions (NDCs), but has so far received only 1.25 per cent of that amount. While international support is significant, for example, the World Bank recently committed US$900 million to improve environmental sustainability and urban climate resilience, and the Asian Development Bank approved a US$400 million loan for enhancing adaptation and emission reduction, the gap between what is promised and what is delivered remains stark.
Money alone cannot shield Bangladesh from climate shocks. What matters equally is how transparently and accountably funds are managed. Civil society organisations and independent watchdogs have consistently highlighted governance gaps, including projects that lack durability, policies that remain unimplemented and communities that remain sidelined from decision-making.
The challenge is not just about attracting climate finance but ensuring that every taka and dollar delivers long-term and sustainable benefits.
To truly mainstream climate finance, Bangladesh must ensure that its national policies and international funding streams are not just parallel tracks but converging pathways. That means aligning development and adaptation goals, strengthening institutional capacity and empowering local communities to have a voice in climate decision-making.
Mowtushi Poit
Assistant Professor
Bangladesh Institute of Governance and Management (BIGM)
mowtushi.poit@bigm.edu.bd
