More than half of Bangladesh’s government-funded climate projects have been lost to irregularities and corruption, Transparency International Bangladesh (TIB) revealed on Monday.
The losses, amounting to over Tk2,110 crore, stem from bribery, embezzlement, and collusive practices in project approvals and implementation under the Bangladesh Climate Change Trust (BCCT) Fund.
According to TIB’s new report, “Governance Challenges in Climate Finance in Bangladesh and Way Forward,” between 2010 and 2024, 891 projects were approved under the BCCT, with an estimated allocation of USD 458.5 million (Tk 3,896 crore). Of this, USD 248.4 million (Tk 2,110.6 crore) was reportedly lost due to corruption.
At a press conference at TIB’s Dhanmondi office, officials detailed how irregularities occurred at multiple stages, including project approval, contractor appointments, and implementation. Solar streetlight projects were particularly vulnerable; of 373 projects approved from 2019 to 2023, 216 (57.9%) involved solar streetlights, with equipment costs inflated by 47–57%. Embezzlement from these projects alone is estimated at USD 17–20.7 million (Tk 144–175 crore).
Other losses include Tk 175 crore in bribery during project approval, Tk 599.9 crore in collusive tendering and contractor recruitment, Tk 1,281.3 crore in embezzlement during implementation, and Tk 54.4 crore in bribes among supervising officials.
TIB Executive Director Dr Iftekharuzzaman criticized political interference, saying, “The nature and extent of irregularities indicate this sector has become a specialized area of corruption driven by political collusion. Those involved include BCCT board members, politically influential groups, implementing officials, and contractors. Despite the obligation to implement risk-sensitive climate initiatives, these objectives have been undermined.”
Iftekharuzzaman added that while developed countries pledged USD100 billion annually to support climate action in vulnerable nations, Bangladesh has received negligible international funding. “Ensuring corruption-free use of national climate funds is therefore crucial,” he said.
Commenting on governance gaps, TIB’s report noted that from 2003 to 2024, Bangladesh required USD 10–12 billion for climate-related projects but received only USD 1.2 billion. “Of the limited public funding available, over Tk 2,000 crore was misappropriated. Accountability must be ensured for all involved, and the BCCT should be restructured to operate professionally, free from political influence,” Dr Iftekharuzzaman said.
The report also highlighted funding gaps in national climate plans, including the Nationally Determined Contributions (NDCs), National Adaptation Plan, Sustainable Development Goal 13, and the Bangladesh Delta Plan 2100. Climate allocations through the national budget cover only 23.2% of annual needs, while national and international climate funds provide just 0.7%. Weak laws, policies, and planning frameworks, coupled with widespread corruption, exacerbate the problem.
TIB recommended updating the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) 2009, amending the BCCT Act 2010, increasing budget allocations, prioritizing vulnerable communities, enabling BCCT to access international funds, and establishing an independent monitoring body to supervise all climate projects.
TIB Executive Director Dr Iftekharuzzaman, Advisor to Executive Management Professor Dr Sumaiya Khair, and Director of Research and Policy Division Muhammad Badiuzzaman, were present in the press conference, among others.