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Climate finance and development bangladesh


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Climate finance and development bangladesh

  1. 1. Bangladesh Climate Public Expenditure and Institutional Review (CPEIR) Presenter: Dr. Shamsul Alam, Member, General Economics Division, Planning Commission, GoB PEI Regional Workshop (9-11 August 2012)Acknowledgement: Poverty, Environment and Climate Mainstreaming (PECM) Project General Economics Division, Planning Commission 1
  2. 2. Findings: Climate Expenditure• GoB spends 6% to 7% of its annual combined budget on climate sensitive activity• Annual sum of US$1bn or just over 1% of GDP• Climate spend increased in absolute terms over last two years, but slight declined in relative terms• From 2009/10 to 2011/12 , 77% of climate sensitive budgets from domestic resources and 23% from foreign donor resources• 97% spent on adaptation• Loan funding increased from 58% to 82% of foreign funds between 2009/10 and 2011/12• Climate Trust funds are very small share of total• Social protection for climate vulnerable very large share of finance, but much less attention
  3. 3. Findings: Policy• Despite a lot of potential opportunities, private sector involvement is at initial stage• Many NGOs involved and danger of duplication• Participation of stakeholders has increased, but participation of poor people still limited• No overall national policy that deals with climate change in Bangladesh. BCCSAP strategy does not specify which one, out of 28 adaptation modalities, should be prioritized 3
  4. 4. Findings: Institutional• Complexity – Financial (5 Mechanisms) – Institutional (37 Ministries, Plus LG, Plus NGOs, Plus Others) – Policy (Multi layered, Multi sectoral, Unbalanced Influences) – Local Governance Structure (District Administration, Elected Authorities)• Urgent need for Co-ordination and Better Organisation• Existing Architecture should be used to address Climate and Climate Change on an Integrated Basis – Budgets – Policies – Institutions – Programmes – Projects 4
  5. 5. Key Recommendations• The inclusion of a Climate Change functional code in the reviewed Chart of Accounts• Develop means to identify climate actions more explicitly and consistently in Ministry Budget Frameworks• Existing institutional architecture for development strengthened to plan, finance and implement CC programmes.• Institutions should emphasise vulnerability and climate hot- spots• Focus on balancing sector policies with overall climate strategy• Focus on strengthening the Annual Development Plan (ADP) and Medium term Budgetary Framework (MTBF) processes as a means to balance and co-ordinate policy. 5
  6. 6. Next stepsPECM project to work with Planning Commission,Ministry of Finance and Development Partners:CPEIR Report recommendations used to develop a national Climate Fiscal Framework by Government of Bangladesh with donor supportClimate budget code by Ministry of Finance, include climate to Medium term budget frameworkDevelop climate fiscal framework for local government with Ministry of Local Government and Rural Development &Cooperatives 6