The Transparency International Bangladesh (TIB) held a press conference in Dhaka on November 4, 2025 to release a research report titled “Governance Challenges in Climate Finance in Bangladesh and Way Forward.” According to the report revealed in the press conference, more than 50 percent of the government’s own fund—the Bangladesh Climate Change Trust (BCCT) Fund, established to tackle the climate crisis—has been lost due to various forms of irregularities and corruption, amounting to over BDT 2,000 crore. Between 2010 and 2024, a total of 891 projects were approved under the BCCT, with an estimated allocation of USD 458.5 million (BDT 3,896 crore). Of that, USD 248.4 million (BDT 2,110.6 crore) has been lost due to corruption.
At the press conference, attended by TIB Executive Director Dr. Iftekharuzzaman, Professor Dr. Sumaiya Khair, and Muhammad Badiuzzaman. it was revealed that bribery and illegal transactions during project approvals, irregularities in contractor appointments, and fund embezzlement during implementation stages were major sources of corruption. Based on the report, presented by Md. Mahfuzul Haque and Md. Shahidul Islam, it was stated that the widespread irregularities and failures in preventing corruption have led to massive wastage of scarce climate funds and compromised the usefulness of projects. Consequently, the BCCT is at risk, and future allocations for climate initiatives may decline, depriving vulnerable and marginalized communities of the support they need in the long run.
The report revealed that most corruption occurred during the implementation phase of BCCT projects. A significant amount of money was embezzled under the guise of streetlight and solar panel installation. From 2019 to 2023, the BCCT board approved 373 projects—of which 216 (57.9 percent) were related to installing solar streetlights in municipalities and other areas. Many of these projects were approved with grossly inflated equipment costs, estimated between 47.1 percent and 57.1 percent. The estimated embezzlement from solar streetlight projects alone amounts to USD 17–20.7 million (BDT 144–175 crore). Over the past 14 years, bribery and illegal transactions during project approval amounted to BDT 175 crore, while collusive tendering, contractor recruitment, and subcontract corruption totaled BDT 599.9 crore.
TIB observed that all indicators of good governance show significant shortcomings in the operation of climate funds. These include weak laws, policies, and planning frameworks; an imbalance in fund allocations based on vulnerability; limited institutional capacity for project implementation; delays in fund disbursement; weak accountability and transparency mechanisms; limited stakeholder participation and coordination; and widespread corruption with inadequate preventive measures.
Criticizing the political involvement behind the over 50 percent loss caused by various irregularities and corruption in projects implemented under government funding, The TIB Executive Director Dr. Iftekharuzzaman said, “The nature and extent of irregularities in this sector indicate that it has become a specialized area of corruption driven by political collusion. Those involved include various stakeholders, such as the BCCT board chair or members, as well as politically influential groups, whose conflicts of interest and abuse of power, combined with corruption among some implementing officials and irregularities or illegal transactions by contractors and implementing agencies, have taken corruption in this sector to new heights…”
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The report, which also noted significant funding gaps in major national plans such as the Nationally Determined Contributions (NDCs), the National Adaptation Plan, Sustainable Development Goal 13 (Climate Action), and the Bangladesh Delta Plan 2100, highlighted weaknesses in existing laws and policies, including the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) and the Bangladesh Climate Change Trust Act 2010, which are no longer adequate or up to date. There is an absence of clear regulations and guidelines for fund management and project implementation. Overall, Bangladesh’s climate finance framework suffers from insufficient attention, low budgets compared to needs, geographically and strategically inconsistent project selection, and a lack of long-term planning.
Highlighting the failure, TIB Executive Director said, “…On the other hand, despite the obligation and opportunity to implement priority-based, risk-sensitive initiatives in climate financing, these objectives have not been achieved due to irregularities and corruption…While this amount may seem smaller compared to the overall plundering over the past 16 years, in reality it constitutes 54 percent of the government fund for this sector…” Commenting on the shortcomings of governance in the use of public funds, Dr. Zaman said, “In the absence of the expected flow of foreign funding to address climate change-induced crises, local funding had created a certain optimism. However, the findings of this study are deeply embarrassing…”
To address concerns with climate fund projects in Bangladesh, TIB provided several recommendations. Based on research, TIB recommends updating the BCCSAP 2009 and other national climate plans and increasing budget allocations for climate-related projects. It also calls for amendments to the Bangladesh Climate Change Trust Act 2010 and for enabling the BCCT to access innovative financing sources such as international climate funds, carbon trading, and the Clean Development Mechanism beyond the national revenue budget. It also puts emphasis on ensuring transparency and accountability in project approval and implementation.
Indicating the embezzlement in climate projects and putting importance on the increased allocations and accountability, TIB Executive Director Dr. Iftekharuzzama said, “…Nevertheless, this should not undermine the importance of government-funded climate projects; rather, government allocations should be increased. At the same time, accountability must be ensured for everyone involved in irregularities, regardless of their identity or position, and the BCCT should be restructured to operate professionally, free from government and political influence.”
The organization in its recommendations further emphasizes prioritizing geographical and vulnerability-based funding to reach affected communities, bringing those involved in corruption to justice, and establishing a separate, independent monitoring body to regularly supervise and audit all national and international climate fund projects implemented in Bangladesh.
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