Experts urge higher allocation for environment ministry as climate budget shrinks

Climate experts and stakeholders have urged the government to raise the budget share for the Ministry of Environment, Forest and Climate Change from below 0.3% to at least 1%, while integrating climate investments across agriculture, water, energy, disaster management, and local governance.

The call came at a roundtable on "Climate Budget Analysis: Aligning National Priorities with Graduation Challenges," organised by ActionAid Bangladesh yesterday (15 September) in Dhaka.

This year's climate budget is Tk41,209 crore, or 10.07% of the national budget, 2.4% lower than last year. As a share of GDP, allocations have steadily dropped from 0.81% in FY20 to 0.66% in FY26, reflecting stagnation. 

The environment ministry received just Tk1,380 crore, which is only 0.3% of the budget, with 88% of climate finance still reliant on foreign loans and grants. 

In energy, Tk22,520 crore was allocated, but no dedicated fund was set aside for renewables, despite pledging for a low-carbon transition.

Md Ziaul Haque, director at the Department of Environment, noted that while 25 ministries receive climate funds, much of the spending is hidden, with climate and development projects often blurred. 

Political leaders also voiced their concerns. Ehsanul Mahbub Jobayer of Jamaat-e-Islami criticised unplanned development for worsening environmental risks, while Monira Sharmin of the National Citizen Party stressed engaging local communities in planning instead of following donor preferences.

Farah Kabir, country director of ActionAid Bangladesh, highlighted the need for accountability, transparency, and incentives for eco-friendly practices such as subsidies, tax rebates, and stronger private sector involvement.

ActionAid urged Bangladesh to move beyond fragmented, donor-driven projects toward a transparent, program-based, gender-responsive framework. 

It recommended new domestic financing tools such as green taxes, carbon pricing, pollution charges, and green bonds, with a focus on women-led enterprises. Blended financing, combining public, private, and concessional flows, was proposed to close funding gaps.

The organisation also called for a national climate finance registry to track allocations by gender and region, programmatic budgeting aligned with the National Adaptation Plan, Delta Plan 2100, and updated NDCs, and annual climate expenditure reports that reflect women's local experiences to ensure both accountability and inclusiveness.