$248m lost to corruption across 891 national climate projects over 14 years: TIB

Highlights

• TIB estimates $248 million misappropriated from 891 projects between 2010 and 2024
• 61.6% of projects under national fund saw timeline extensions, average duration increased by 134%
• Iftekharuzzaman says political figures, influential individuals looted this money

Transparency International Bangladesh (TIB) has said corruption plagued more than half of Bangladesh's national climate fund allocations, with an estimated $248 million (Tk2,110 crore) misappropriated from 891 projects between 2010 and 2024.

As much as 54% of allocations from the national climate fund, Bangladesh Climate Change Trust (BCCT), have been affected by corruption, according to a new TIB report unveiled today.

From 2010 to 2024, a total of $458.5 million was allocated through the BCCT, according to the study, the findings of which were shared at a press conference titled "Challenges and Way Forward in Ensuring Good Governance in Climate Finance in Bangladesh" at the TIB office in Dhaka.

The report stated that project approvals were often influenced by political considerations and collusion among members of the trustee board and technical committee, while BCCT officials failed to take effective measures to prevent it.

The press conference was attended by TIB Executive Director Iftekharuzzaman, TIB Executive Management Adviser Professor Sumaiya Khair, and Research and Policy Division Director Muhammad Badiuzzaman. The event was moderated by the Director of Outreach & Communication, Mohammad Tauhidul Islam, while Senior Research Fellow Md Mahfuzul Haque and Research Associate Md Shahidul Islam presented the report.

TIB Executive Director Iftekharuzzaman speaks at a press conference on 4 November 2025. Photo: TBS

The report noted that Bangladesh needs $12.5 billion annually to address climate impacts, but only $86.2 million per year was allocated between 2015 and 2023 from both national and international sources, a mere 0.7% of what is required.

It said allocations from the national fund have been decreasing at an average annual rate of 8.2%; international fund allocations have increased by 43.8%, yet remain far below the country's needs.

The report further highlighted delays and inefficiencies in implementing projects funded by the national trust. 

Out of 891 projects, 549 (61.6%) had their timelines extended, with the average duration increasing by 133.8%, from 648 to 1,515 days. 

Some projects originally planned for four years took up to 14 years to complete, it added.

The report noted a similar pattern in projects funded by international sources: 41.2% of 51 projects experienced timeline extensions, with the average duration increasing by 52.1%, from 1,958 to 2,978 days.

The study found that most corruption occurred during the implementation phase of BCCT projects. A significant amount of money was embezzled under the guise of streetlight and solar panel installation. 

From 2019 to 2023, the BCCT board approved 373 projects, of which 216 (57.9%) were related to installing solar streetlights in municipalities and other areas. Many of these projects were approved with grossly inflated equipment costs, estimated between 47.1% and 57.1%. The estimated embezzlement from solar streetlight projects alone amounts to $17-20.7 million (Tk 144-175 crore).

Over the past 14 years, bribery and illegal transactions during project approval amounted to Tk175 crore, while collusive tendering, contractor recruitment, and subcontract corruption totalled Tk599.9 crore. Fund embezzlement during implementation reached Tk1,281.3 crore, and Tk54.4 crore was exchanged in bribes among supervising officials, it stated.

Influential individuals behind corruption: Iftekharuzzaman 

At the press conference, TIB Executive Director Dr Iftekharuzzaman said, "Bangladesh needs $10 to $12 billion every year as climate compensation. But from 2003 to 2024, we received only $1.2 billion, an extremely small amount."

He added that 54% of the national climate fund has been lost to corruption and misuse.

"Political figures and influential individuals have looted this money. The corruption occurred due to a lack of accountability and good governance, political interference, and the incompetence and irregularities of implementing agencies," he added.

He said, "Some may argue that the scale of misappropriation, compared to other forms of national corruption, is not massive. But if we look closely, losing 54% of climate funds to corruption is a severe blow to governance standards and accountability. What we demand now is change. The purpose of this report should not be to justify the irregularities but to ensure that, despite the corruption and poor governance, climate finance is treated as a vital area of national interest that requires even greater attention, transparency, and priority."