Bangladesh spends approximately 6-7% of its yearly budget, or $1 billion annually, on adapting to climate change, according to a financial review undertaken by the Bangladeshi Ministry of Finance, UN Development Programme (UNDP) and UN Environment Programme (UNEP).
23 May 2014: Bangladesh spends approximately 6-7% of its yearly budget, or US$1 billion annually, on adapting to climate change, according to a financial review undertaken by the Bangladesh Ministry of Finance, the UN Development Programme (UNDP) and the UN Environment Programme (UNEP).
The Government of Bangladesh and the UNDP-UNEP Poverty-Environment Initiative (PEI) carried out the review using a comprehensive ‘Climate Change Accounting System.’ The World Bank has estimated that Bangladesh will need US$5.7 billion for adaptation by 2050; this review shows that current annual adaptation expenditures are already nearly one-fifth of the World Bank estimate.
In contrast to assumptions that international donors finance the majority of adaptation costs, the review shows that the Government of Bangladesh finances 75% of current adaptation expenditures while international donors provide funding for the remaining 25%. The review also found that poor communities suffer the worst impacts of climate change, with costs often surpassing their incomes.
The results of the review have spurred action among government ministries in Bangladesh, moving the issue of climate change into mainstream planning and policy considerations, including into ministries of agriculture, disaster management, local government and water resources.
Bangladesh’s Minister for the Environment has used the findings at international climate change negotiations and in other statements to stress the level of funding needed by Least Developed Countries (LDCs) and others to adapt to climate change. [UNEP Press Release] [PEI Website]