Present status of climate financing in bangladesh

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Present status of climate financing in bangladesh

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.

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Why climate financing is so important

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.

HOW TO SECURE CLIMATE FINANCING

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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 CLIMATE FINANCING STATUS IN BANGLADESH

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A 10-year country strategy and plan of action has been prepared for 2009- 2018 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.

FUBDING TO COUNTRY PLAN OF ACTION

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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 evasive.

GLOBAL FINANCIAL NEED ESTIMATES

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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.

AID POLITICS

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AID POLITICS:

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.

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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.

Need for strengthening national presence in global climate forum

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