The government is set to increase climate-related allocation by more than 25 per cent in the upcoming national budget, marking a significant step towards the “Green Economy” promised in BNP’s election manifesto.
The proposed allocation for climate sector stands at Tk51,746 crore, an increase of over Tk13,500 crore compared to the current fiscal year’s revised budget of Tk38,125.07 crore. Notably, the interim government’s declared budget for this sector was Tk41,208 crore.
A total of 25 ministries are tasked with implementing these climate-related programmes.
Sectoral breakdown, priorities
Government sources say this funding surge reflects a renewed commitment to climate adaptation, resilience-building, and sustainable development.
Of the total allocation, 75.2 per cent [approximately Tk38,906 crore] is earmarked for adaptation, while Tk9,925 crore is set aside for mitigation and Tk2,915 crore for other related areas.
Despite the overall increase, the specific allocation for Ministry of Environment, Forest and Climate Change remains relatively modest at Tk1,413.09 crore, though this is an increase from the revised Tk1,095.696 crore in the current fiscal year.
This budget places the highest importance on food security, social safety, and health, which collectively receive 42.26 per cent of the total climate funding. Experts deem this focus logical for a vulnerable, agriculture-dependent nation where climate change first impacts food production, water resources, and the impoverished.
The BNP’s election manifesto placed heavy emphasis on environmental protection, treating climate change as an economic opportunity rather than just a risk.
Pledges included planting 250 million trees over five years, creating 350,000 “green jobs”, and fostering 10,000 new nursery entrepreneurs. The party also proposed an Environment Startup Fund and a carbon trading market, with a target of earning $1 billion annually from carbon credits.
However, the current budget lacks a clear roadmap for the legal, institutional, and technical infrastructure required to establish such a carbon market.
On the implementation front, Bangladesh shows a strong track record. Between the 2020-21 and 2024-25 fiscal years, approximately 96 per cent of the climate-related operating budget was utilised, while climate development projects saw an average implementation rate of 84 per cent.
Expert concerns
Environmental activist Iqbal Habib expressed dissatisfaction with the current priorities, telling TIMES of Bangladesh that the budget’s primary limitation is its failure to centralise the restoration of ecosystems.
He argued that while funding exists for development projects, there is a dire need for a separate budget framework to recover damaged agricultural land, rivers, wetlands, air quality, and urban environments.
Habib further stressed the importance of dedicated planning and funding for the housing, health, and livelihoods of people displaced by climate change.
He also warned that without strengthening the Department of Environment, the River Commission, and related institutions with manpower, technology, and legal authority, even large allocations would fail to yield desired results.
Official data underscores the urgency, noting that 36 million people live under direct coastal climate risk. Rising sea levels, cyclones, storm surges, salinity, and river erosion are already placing immense pressure on agriculture and livelihoods in the southern regions.
Analysts have also highlighted a critical shortfall in research and capacity building. The allocation for Research and Knowledge Management stands at 2.65 per cent, while Capacity Development receives 2.98 per cent.
Combined, less than 6 per cent of the budget is spent on scientific research, weather modelling, and data analysis that form the basis of policy-making process.
Climate experts warn that without this foundation, thousands of crores spent on large infrastructure projects may not align with future climate realities.
