Transparency International Bangladesh (TIB) has reported that Tk211 billion has been misappropriated from the National Climate Fund over the past 10 years. This information was presented at a press conference held on Tuesday at Midas Centre in Dhanmondi, Dhaka, on the occasion of the release of a research report titled “Challenges and Ways to Ensure Good Governance in Climate Finance in Bangladesh.”
According to the organisation’s accounts, more than half of the National Climate Fund’s allocations have been lost to corruption. In particular, between 2010 and 2024, out of 891 projects approved under the Bangladesh Climate Change Trust Fund (BCCTF), evidence of corruption was found in 54% of allocations. The estimated amount of misappropriated funds is approximately 248.4 million dollars, equivalent to over Tk211 billion.
TIB’s Executive Director stated, “Bangladesh requires 10 to 12 billion dollars annually as climate compensation. However, from 2003 to 2024, we have received only 1.2 billion dollars, which is negligible.”
He added, “Funds from the national climate fund have been embezzled by politically influential individuals.”
He further noted, “This embezzlement has been possible due to a lack of accountability, good governance, and efficiency. We seek to change this situation. Without participation of the actual beneficiaries, transparency, and accountability in climate financing, sustainable development will become impossible.”
According to TIB’s report, a total of 458.5 million dollars was approved for allocation from BCCTF between 2010 and 2024. More than half of this allocation was affected by corruption. The report highlighted a clear tendency for project approvals to be influenced by political considerations, collusion, and nepotism. However, as fund managers, BCCTF officials took no effective measures to prevent irregularities.
TIB noted that Bangladesh requires 12,500 million dollars annually to tackle climate impacts. Yet, from 2015 to 2023, combining national and international funds, the average annual allocation was only 86.2 million dollars, a mere 0.7% of the required amount.
Allocations from the national fund have decreased at an average rate of 8.2% per year, whereas allocations from international funds increased by 43.8%. Nevertheless, the report pointed out that even the combined allocations remain extremely limited compared to actual needs.
The report states that long delays and failures in project implementation under the national fund are regular occurrences. Out of 891 projects, 549 had their duration extended. On average, projects scheduled for 648 days took 1,515 days to complete, an increase of 133%. Some projects originally planned for four years took up to 14 years. International funds show a similar trend: of 51 projects, 21 saw average durations increase by 52%.
The report further notes deficits in implementing national and international climate change plans. Budget allocations have not been consistent with financial needs for plan implementation. Long-term planning is absent in both national fund or BCCTF allocations, and the Climate Change Trust faces multiple crises.
Regarding corruption and irregularities in the fund, the report states that highly vulnerable areas received less priority in allocations. Projects unrelated to climate adaptation were approved. Fund money was used for constructing safari parks and eco-parks. Poor-quality work was executed, funds were embezzled, and in some cases, money was collected irregularly from project beneficiaries.
The report reiterates that long delays and failures are common in project implementation. Out of 891 projects, 549 (61.6%) had their duration extended. On average, project durations increased from 648 days to 1,515 days, a 133.8% rise. In some cases, projects originally planned for four years took 14 years to complete.
The overall observation of the report is that climate financing and related activities have not been given due importance. Budgets allocated are negligible compared to needs, and project selections often contradict demand, geographical realities, and planning policies.
The research recommends amending the Climate Change Trust Act 2010, establishing a separate independent institution for fund oversight and auditing, and bringing those involved in irregularities and corruption to justice.
–BSS
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