Adaptation gets 75.2% of climate spending in FY27 budget

The government has allocated Tk38,906 crore for climate adaptation in the FY 2026-27 budget, with the expenditure accounting for 75.2% of total climate-related spending, according to the Bangladesh Climate Budget Report 2026-27.

The allocation underscores the government's emphasis on strengthening resilience against climate change and protecting vulnerable communities through investments in flood management and water resource development, coastal protection and disaster risk reduction, climate-resilient agriculture, and social safety net programmes for populations most exposed to climate impacts.

The report shows that adaptation remains the largest component of climate-related expenditure, highlighting the country's focus on addressing climate vulnerabilities while pursuing sustainable and inclusive development.

A significant portion of adaptation spending is being financed from domestic resources. Around 70% of adaptation projects are funded directly by the Government of Bangladesh (GoB), reflecting a strong national commitment to enhancing resilience and reducing climate-related risks.

The report identifies the local government division, the Ministry of Agriculture and the Ministry of Water Resources as the principal institutional drivers of climate expenditure.

Together, the three entities manage more than 53% of the country's total climate-related spending, underscoring their central role in implementing adaptation-focused programmes.

Their activities cover a broad range of interventions, including water resource management, climate-resilient agricultural initiatives, local-level infrastructure development and measures aimed at protecting communities from climate-induced hazards.

In the foreword to the Bangladesh Climate Budget Report 2026-27, Finance Minister Amir Khosru Mahmud Chowdhury emphasised the growing significance of climate finance in addressing Bangladesh's development and environmental challenges.

"Bangladesh stands at a critical juncture where climate vulnerability intersects with the pursuit of sustainable and inclusive development. ... In this context, climate finance is not merely a source of support; it is a key enabler of resilience, innovation, and sustainable development," he said.

The finance minister further said the report "reflects both our challenges and our firm commitment to building a climate-resilient future."

The adaptation-focused allocation is in line with the government's broader policy priorities outlined in the national budget for Fiscal Year 2026-27 (FY27).

The finance minister on June 11 placed the Tk 9.38 lakh crore national budget in the parliament for the fiscal year 2026-27.

Presenting the budget, Amir Khosru Mahmud Chowdhury identified climate resilience and environmental management among the country's major strategic priorities.

"The Budget is built around 10 strategic priorities: ... Management of Life, Nature, Environment, and Water Resources: Protecting the nation from the impacts of climate change and preserving biodiversity... to build a sustainable, green, climate-resilient, and livable future for generations to come," he said.

The minister also reaffirmed the government's commitment to tackling climate challenges and safeguarding future generations through sustainable development initiatives.

"One of the key objectives of the government is to address the challenges of climate change and to build a green and sustainable Bangladesh for future generations," he said.

The adaptation allocation reflects this policy objective through investments in sectors considered critical to strengthening climate resilience. Flood management and water resource development have received particular attention as part of efforts to improve the country's capacity to cope with climate-related water challenges.

Highlighting the government's approach to water resource management and adaptation, the finance minister said, "The government is formulating and implementing projects on irrigation, flood management, riverbank protection, land reclamation, waterlogging mitigation, salinity control and other aspects of sustainable water resources management."

The climate budget's emphasis on flood control, irrigation, riverbank protection and related activities corresponds with these ongoing initiatives.

Disaster risk reduction is another key focus of adaptation spending. The report identifies coastal protection and disaster risk reduction as major sectors receiving climate finance support, with the objective of strengthening preparedness and resilience in areas vulnerable to climate hazards.

Addressing the issue in his budget speech, the minister said, "The government has therefore placed greater emphasis on sustainable disaster management and disaster risk reduction."

The adaptation strategy also includes social safety net programmes aimed at supporting populations most vulnerable to climate impacts and helping communities cope with environmental shocks.

Particular emphasis has been placed on coastal areas, where climate-related risks continue to pose significant challenges. The climate budget's focus on coastal protection is aligned with broader government efforts to safeguard lives, livelihoods and infrastructure in those regions.

Referring to these initiatives, the finance minister said, "A balanced development approach has been adopted to improve the quality of life of people living in coastal areas. In the medium and long term, plans have been undertaken to... construct sustainable embankments, riverbank protection works and cyclone shelters to mitigate the impacts of cyclones and storm surges."

With adaptation accounting for more than three-fourths of total climate-related expenditure and backed substantially by domestic financing, the FY27 climate budget highlights the government's focus on flood management, water resources, coastal protection, disaster risk reduction, climate-resilient agriculture and social protection as major components of Bangladesh's climate resilience efforts.