Climate Finance Monitoring

Present status of climate
financing in bangladesh
Present status of climate financing in bangladesh
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Why climate financing is so important
 In the first place climate change is affecting people’s livelihood by way of sea
level rise threatening to inundate up to one-fifth of Bangladesh creating up to
30 million homeless, cyclone and floods destroying human and animal lives
and property, draughts causing crop failure, intrusion of saline waters causing
crop failure to causing food security problems among a list of so many other
factors destabilizing life on earth.
 So climate finance is so important to support mitigation, adaptatio in,
investment in technology and such other innovative programmes to help
affected nations and global institutions to secure remedial actions.
 Funding also important to promote public education and awareness
programmes to help people and affected nations to manage threats.
Present status of climate financing in bangladesh
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 Fund may come from Bangladesh government, such as from
 Allocation under Bangladesh Climate Change Trust Fund, in addition to
budgetary allocations for development projects having climate change
components in the ADP.
 From multilateral and bilateral donors sources, such from Climate Resilience
Fund, Adaptation Fund-AF set up under Koyoto protocol, Least Developed
Countries Fund-LDCF and Special Climate Change Fund-CSSF.
 World Bank is also operating two climate financing windows at bilateral level,
the first one lend loans on interest and the second one offers grants to
parties bearing conditions at multi-sectoral levels.
Present status of climate financing in bangladesh
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From GOB sources
There is an allocation of TK 1400 crore in the BCCTF from which the
government has so far allocated up to Tk 500 crore to finance several dozens
small projects
 This expenditure include Tk 21 crore to NGO funded projects, the remaining
allocation has gone to government executed projects.
From global sources
 There is a multi-donor allocation of US$ 110 million under Bangladesh
Climate Resilience Fund but any disbursement yet to come. The World Bank
is also funding some ADP projects having climate components, but it can not
be clearly said how much money it refers to climate financing.
 Climate Fund for US$ 100 billion created at Cancun summit last year with a
start programme of 30 billion ……. But it takes time to know how much of it
may find way to Bangladesh.
Present status of climate financing in bangladesh
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 A 10-year country strategy and plan of action has been prepared for 20092018 to need US$ 5 billion for the first five years with allocation of US$ 500
million for the first two years each. DFID agreed to provide 60 million pounds
which was later raised to US$ 110 million under Climate Resilience Fund.
 International community agreed to provide support to poor countries from
LDCF but it has so far approved only 18 national adaptation programme of
action (NAPA) in 2008 out of a total of 39. It has so far funded only one project
from Bangladesh plan of action out of 15 presented.
 NAPA programmes for 48 poor countries require US$ 1 to 2 billion annually
but donors commitment came for only US$ 67 million by September 30, 2007.
It explains the gap between the demand and response.
 Adaptation fund mobilization is still smaller to only 40 million by last year
however parties hope to raise it to 500 million by 2012.
 SCCF was set up to finance adaptation, transfer of technology and related
skill development, enhancement of managerial capacity in the energy,
transport, industry and agriculture, forestry and waste disposal. Fund to
come from voluntarily from developed nations. No progress is visible so far.
Present status of climate financing in bangladesh
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 World Bank refers to US$ 10 to 40 billion for 2006 to provide support to
various adaptation programme under development assistance
 Oxfam refers to an expenditure 0f US$ 50 billion to developing nations to
promote adaptation activities.
 UNFCCC refers to an investment of between US$ 49 to 171 billion to promote
adaptation in 2030.
 UNDP speaks of US$ 86 billion adaptation expenditure in 2015
 UNFCCC further refers to a cost outlay of US$ 360 billion to reduce the
carbon emission by the year 2030 to the level of 2007.
 Other agencies and multilateral bodies have other estimates but progress in
the ground thsat may bring benefits to LDCS and island nations is very poor.
 Oxfam believes at Adaptation fund USA should pay 44 per cent, Japan 13
percent, Germany 7 percent, UK 5 percent and Italy, France, Canada to 4-5
percent and Spain, Australia and South Korea to 3 percent. But they remain
Present status of climate financing in bangladesh
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 Developed countries are not seriously ready to reduce carbon emission that
can bring relief to affected coatline nations but instead using their wealth and
power to exploit newly set up fund to their commercial benefit.
 Seek to make transfer of technology a business propositionn based on
competitive market price.
 Seek to pass load of carbon emission back to the poor nation by way of
carbon trade and other gimmick.
 Though they have agreed to contribute fund on the basis of the principle that
polluters and exploiters should pay, in reality they seek to deny it abd prefer
to continue their high consumption living.
 They are not ready to recognize climate refugees as natural persons having
the right to migrate to developed countries to begin new life.
Present status of climate financing in bangladesh
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 Donors want to retain control on fund use
 They are forcing Bangladesh and other poor nations to accept WB managerial
authority on the multi-donors climate fund.
 They are using the power to frame projects which are having supply side
priority over the priority of the local population.
 WB is pushing development assistance that is loan or grants on climate
related projects to strengthen its hold on the poor nations like Bangladesh
and have previously used its leverage at DFID held Bangladesh climate
conference in London in 2008 forcing Finance adviser to accept its authority
while the adviser for forest was opposed to it.
 Local politics is also affecting Bangladesh negotiating stand. Its seat at 16
member Adaptation fund board , set up under Koyoto protocol is falling
vacant due to political difference on local candidate.
Present status of climate financing in bangladesh
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Need for strengthening national presence in global climate forum
 For this there is a need for strengthening bargaining power and know-how on
complex climate issues.
 Set up appropriate national institutions to promote skillful negotiations and
put right persons at the right place.
 NGO participation to use climate fund need to be enhanced. Fund guidelines
and projects approval procedure need to be simplified.
 Multimodal professional and diplomatic exchanges need to be promoted at
global levels to secure due share from climate fund at a time international
community recognize Bangladesh at high risk level.
 Climate education and public awareness campaign must get new fillip.
Research and development of new adaptation technique need to be geared up
especially in areas of crop production.
 Mitigation measures should be enhanced and capacity for prompt
mobilization must go up to address the adverse impacts of cyclones and
such other disasters.
 Participation of civil society in climate management need to be intrusive.
Thank you