More than 50 percent of Bangladesh’s own climate fund—over Tk 2,000 crore—has been lost to corruption and irregularities, according to Transparency International Bangladesh (TIB).
The findings were unveiled on Tuesday at a press conference in Dhaka, where TIB released its new research report, “Governance Challenges in Climate Finance in Bangladesh and Way Forward.”
The report revealed that from 2010 to 2024, a total of 891 projects worth $458.5 million (Tk 3,896 crore) were approved under the Bangladesh Climate Change Trust (BCCT) Fund, established to tackle climate challenges.
Of that, $248.4 million (Tk 2,110.6 crore)—about 54 percent—was lost to corruption through bribery, inflated costs, irregularities in contractor selection, and misappropriation of funds during implementation.
Speaking at the briefing, TIB Executive Director Dr. Iftekharuzzaman said the corruption within the BCCT had evolved into “a specialized area of political collusion,” involving board members, influential political figures, implementing officials, and contractors. “Conflicts of interest and abuse of power have taken corruption in this sector to new heights,” he said, warning that continued misuse of public funds could undermine future climate allocations and harm vulnerable communities most affected by climate change.
TIB found that the highest levels of corruption occurred during the implementation phase—particularly in solar streetlight projects.
Between 2019 and 2023, the BCCT board approved 373 projects, 216 of which (58%) involved streetlight installations. Many were approved with inflated equipment costs, ranging from 47 to 57 percent, leading to estimated embezzlement of Tk 144–175 crore from these projects alone.
Bribes and illegal transactions during project approvals totaled Tk 175 crore, collusive tendering and subcontract irregularities reached Tk 600 crore, and direct embezzlement during project execution accounted for Tk 1,281 crore.
Dr. Iftekharuzzaman added that Bangladesh’s need for climate funding far exceeds its current allocations. “Between 2003 and 2024, Bangladesh required USD 10–12 billion for climate adaptation, but received only $1.2 billion.
Even this limited amount was neither spent transparently nor used effectively,” he said. He stressed that ensuring integrity and accountability in public-funded climate projects is critical, especially since promised international financing from developed nations has been minimal.
The report also highlighted governance failures in Bangladesh’s climate finance system, including outdated laws, weak oversight, poor institutional capacity, and lack of strategic project planning.
Current allocations through the national budget cover only 23 percent of annual needs, while national and international climate funds account for less than one percent.
To address these issues, TIB recommended updating the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) 2009, amending the Climate Change Trust Act 2010, and reforming the BCCT to operate independently and transparently.
The anti-graft watchdog also urged the establishment of a separate monitoring authority to audit all national and international climate fund projects, along with stricter action against those responsible for corruption.
The press conference was attended by TIB Executive Director Dr. Iftekharuzzaman, Advisor to Executive Management Prof. Dr. Sumaiya Khair, Research and Policy Division Director Muhammad Badiuzzaman, and Outreach & Communication Director Mohammad Tauhidul Islam. The report was presented by Senior Research Fellow Md. Mahfuzul Haque and Research Associate Md. Shahidul Islam.