The government is currently spending around 6-7 per cent of the annual budget for climate adaptation, with more than 75 per cent of this amount financed from domestic sources, said the Environment Minister Md. Shahab Uddin, emphasising global financing for climate adaptation.
The adaptation financing needs will increase with the rise in frequency of extreme events, he said while addressing a Ministerial Meeting titled Local Climate Adaptive Living Facility organized by the UNCDF held Wednesday in Brussels, Belgium.
“By 2050, our adaptation costs of tropical cyclones and storm surges are estimated at 55.17 billion dollars. Annual recurrent expenditure will be 112 million dollars. The cost of inland monsoon is estimated to be 26.71 billion dollars and recurrent yearly spending will require 54 million dollars. Such high expenditure for climate change induced causes will affect our allocation for welfare, income generation and poverty reduction programs,” the minister added.
Shahab Uddin said implementation of long-term Bangladesh Delta Plan 2100 will cost 23.23 billion dollars and the country needs 4.65 billion dollars during the 2018 to 2040 period.
We plan to manage US$2.0 billion from the Green Climate Fund every year. The rest of the amount is planned to be received from other development partners, foreign direct investment, and the private sector, the minister added.
The country is set for graduation from LDC status by 2026, and this will put extra pressure on domestic public and private sources. We need to explore more opportunities for accessing international climate funds. And we need large and immediate interventions.
Shahab Uddin said Bangladesh needs more international support for the successful implementation of the Bangladesh National Adaptation Plan 2022.
United Nations Capital Development Fund (UNCDF) and Local Climate Adaptive Living Facility (LoCAL) may provide useful technical support to explore innovative financing instruments, such as scaling up insurance, climate bond, strengthening the capital market, blended climate finance based on a public-private partnership where public finances can catalyze.
UNCDF Executive Secretary Preeti Sinha, Ministers of the LDCs, SIDS and African countries were present in the session.
