Environmentalists demands proper management of climate fund

A letter has been sent to the principal secretary to prime minister and the governor of Bangladesh Bank on Thursday (26 October, 2023) demanding proper management of the climate change trust fund, stated a press release.

The letter noted that Bangladesh is prominent among the countries bearing the brunt of global climate change. According to the climate vulnerable index Bangladesh stands seventh among 192 vulnerable countries of the world. The impacts of climate change on Bangladesh have become evident in the last two decades.

Global climate index 2021 reported that a total of 185 major disasters related to climate change have hit Bangladesh in the last 20 years. These include disasters like floods, cyclones, tidal waves and landslides. Plus, they have cost 11,450 lives and financial loss worth USD 3.72 billion (372 crores).

Bangladesh government formed a climate change trust fund in the 2009-10 fiscal year for capacity building for climate change-related risks on the local level among local population.

Every year, a portion of the national budget goes to this fund and some projects of public interest are implemented on the government and non-government levels with that to help the population at risk of climate change.

The environment, forest and climate change ministry had deposited Tk 5.08 billion (508 crores) from the climate change fund in the Farmers Bank (now Padma bank) back in 2015. Though this FDR money was supposed to be returned to the fund within 2016, only Tk 780 million (78 crorres) have been repaid in seven years.

As a result, the amount due to the climate change fund till 2023 currently stands at Tk 8.27 billion (827 crores) in total at an annual rate of nine per cent. That means the money of the climate fund that was supposed to be used for the protection of people at risk of climate change isn’t being used for that.

Notably, the matter of utter violation of banking guidelines in loan disbursement by Farmers Bank (now Padma Bank) came to light during a special inspection of Bangladesh Bank in 2015. The central bank also found proofs of former Framers Bank directors’ involvement in the sanctioning of loans.

Under this condition, there arises a concern regarding the possibility of the FDR money being returned to the climate change fund along with the interest. This money which could have given protection to the population at risk is now coming to no use because of an unwise decision from the concerning government ministry.

The signatories of the letter demanded to ensure an accountability of this public tax money and ensure arrangements of providing protection to people at risk of climate change through the climate fund.

The signatories also sought intervention from concerning authorities for the proper management of the climate change trust fund via the letter they sent. They hope that the money of the climate fund will return to the fund with appropriate steps and it will be used for the protection of population harmed as well as thrown at risk because of climate change.