Bangladesh has allocated Tk38,906 crore for climate adaptation in the FY2026–27 budget. The allocation accounts for 75.2 per cent of total climate-related spending, according to the Bangladesh Climate Budget Report 2026–27, reports BSS.
The report shows that the government has placed strong emphasis on building resilience against climate change. It focuses on protecting vulnerable communities through investments in flood management, water resource development, coastal protection, disaster risk reduction, climate-resilient agriculture, and social safety net programmes for people exposed to climate impacts.
Adaptation remains the largest component of climate expenditure. It reflects the country’s priority to address climate vulnerabilities while supporting sustainable and inclusive development.
A major share of adaptation spending comes from domestic resources. Around 70 percent of adaptation projects are funded directly by the Government of Bangladesh. This highlights strong national commitment to resilience building and risk reduction.
The report identifies the Local Government Division, the Ministry of Agriculture and the Ministry of Water Resources as the main drivers of climate expenditure. Together, these institutions manage more than 53 percent of total climate-related spending. Their work includes water management, climate-resilient farming, local infrastructure development and protection against climate-induced disasters.
In the foreword to the report, Finance Minister Amir Khosru Mahmud Chowdhury highlighted the growing importance of climate finance in Bangladesh’s development strategy.
“Bangladesh stands at a critical juncture where climate vulnerability intersects with the pursuit of sustainable and inclusive development. In this context, climate finance is not merely a source of support; it is a key enabler of resilience, innovation, and sustainable development,” he said.
He added that the report reflects both national challenges and a strong commitment to building a climate-resilient future.
The adaptation-focused allocation aligns with broader priorities in the FY2026–27 national budget. The finance minister placed the Tk9.38 lakh crore budget in parliament on 11June.
He identified climate resilience and environmental protection as key strategic priorities. “The Budget is built around 10 strategic priorities, including management of life, nature, environment and water resources… to build a sustainable, green, climate-resilient and livable future,” he said.
He also reaffirmed the government’s focus on tackling climate change through sustainable development initiatives.
One key area of focus is water resource management. The minister said the government is implementing projects on irrigation, flood control, riverbank protection, land reclamation, waterlogging mitigation and salinity control.
Disaster risk reduction is another major component of adaptation spending. The report highlights coastal protection and disaster preparedness as key priorities to strengthen resilience in vulnerable areas.
“The government has therefore placed greater emphasis on sustainable disaster management and disaster risk reduction,” the minister said.
Social safety net programmes also form part of the adaptation strategy, aimed at supporting communities most exposed to climate shocks.
Special focus has been given to coastal regions. The budget prioritises protection of lives, livelihoods and infrastructure in those areas.
The minister said, “A balanced development approach has been adopted to improve the quality of life of people living in coastal areas. Plans include sustainable embankments, riverbank protection works and cyclone shelters to reduce cyclone and storm surge impacts.”
With adaptation accounting for more than three-fourths of total climate spending and largely financed from domestic sources, the FY27 climate budget highlights strong government focus on flood management, water resources, coastal protection, disaster risk reduction, climate-resilient agriculture and social protection.
