Half of Bangladesh’s climate fund lost to corruption, watchdog says
Transparency International report exposes massive misuse of adaptation funds under Sheikh Hasina’s government, leaving climate-hit communities unprotected
DHAKA, Bangladesh (MNTV) — More than half of Bangladesh’s state-run climate fund has been lost to corruption and political interference over the past 15 years, according to a new study that raises serious concerns about transparency in one of the world’s most climate-vulnerable nations.
The report by Transparency International Bangladesh (TIB) found that between 2010 and 2024, at least $248 million out of $459 million allocated to 891 projects under the Bangladesh Climate Change Trust (BCCT) was either misused or siphoned off.
According to The Daily Star, the findings reveal deep-rooted political influence and collusion among members of the BCCT’s Trustee Board and Technical Committee, while oversight officials failed to prevent irregularities.
Researchers noted widespread delays across projects. About 62 percent of them extended far beyond their planned duration—some four-year projects took up to 14 years to complete. Internationally funded programs showed similar inefficiency, with nearly half of the 51 reviewed projects exceeding their original timelines.
TIB’s executive director Iftekharuzzaman described the results as “deeply disappointing and embarrassing as a citizen,” adding that the fund, meant to protect the country’s most climate-exposed communities, had become “a severe blow to governance and accountability.”
“In terms of value for money, the results of climate finance are extremely poor,” he said at the report’s launch on Tuesday. “More than half of what was financed never reached the people it was meant for.”
The watchdog said Bangladesh requires $12.5 billion annually to mitigate climate impacts, but between 2015 and 2023 received only $86 million a year from national and international sources—barely 0.7 percent of the amount needed. Since 2003, foreign sources have provided only $1.2 billion, an “insignificant amount given the scale of climate losses.”
TIB also revealed that 15 percent of the Climate Change Trust Fund’s deposits—public money meant for vulnerable regions—were trapped in Padma Bank, described by the group as a “fraudulent bank.” The bank has pledged to repay the funds by 2030, though TIB says there is no guarantee this will happen.
Iftekharuzzaman criticized authorities for failing to recover the money or hold anyone accountable, despite the BCCT’s trustee board including ministers, secretaries, and the central bank governor. “The previous government did not act, perhaps because vested interests were involved,” he said.
The report urged the current government to restructure the Trustee Board with independent, non-partisan experts and to adopt stronger preventive measures. “Only by ensuring competence, independence, and integrity can this vital institution regain credibility and serve its original purpose,” the watchdog said.
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