In a year of climate disasters, climate finance deal is imperative

Advocate Syeda Rizwana Hasan, Honorable Adviser, Ministry of Environment, Forest and Climate Change, Government of the People's Republic of Bangladesh

A record heatwave this summer forced 33 million children out of schools in Bangladesh. Relentless rain and floods affected the lives and livelihoods of 5 million people in 11 districts in the Eastern part of the country.

When we talk about the urgency of a deal on mobilising climate finance, these are the people that we cannot fail. This year’s international climate negotiations have to end on a deal towards providing much-needed relief and adaptation to communities on the frontlines of the climate crisis.

As COP29 gets underway in Baku, where countries inch closer to agreeing on a new finance goal, we must recognise the first-hand consequences of our actions for the communities, we are responsible for serving and protecting.

The wild swings between extreme weather in Bangladesh and around the world this year once again served us with a stark reminder that climate change will not wait for anyone. Each missed opportunity to act decisively and boldly to tackle the impacts of the climate crisis leaves irreparable damage that vulnerable communities will have to live with for a long time.

We must set our priorities straight and agree on a climate finance definition and a new, collective, quantified goal which reflects the needs of climate-vulnerable countries and communities.

Developing countries, such as Bangladesh, are already facing intense and frequent climate catastrophes, a crisis that developing countries did not cause but are now having to deal with the worst impacts.

The need to adapt our systems and infrastructure to these climate extreme events is more urgent than ever. However, the adaptation finance gap is widening at an unprecedented rate. In 2023, the adaptation finance needs of developing countries were estimated to be 10–18 times greater than the available international public finance.

Currently, the Government of Bangladesh allocates approximately 6-7 percent of its annual budget to climate finance. Seventy-five percent of this comes from our own domestic resources. But our adaptation needs are much higher and cannot be met without international cooperation.

The demand for adaptation finance in Bangladesh is particularly pressing and continues to lag behind the funding available for mitigation.

Additionally, we are increasingly facing losses and damages that can not be avoided due to the intensity of climate disasters. Tropical cyclones cost Bangladesh about $1 billion annually, according to the World Bank. These numbers are far too high to ignore. 

Bangladesh was one of the first countries to call for compensation for damages caused by climate change. The loss and damage fund agreed last year was a much-needed step forward but we can not declare victory yet – the fund needs to be filled up with new and additional finance commitments, operationalised effectively and made accessible for the countries that need it most.

Thirdly, world leaders—including those from developing countries—committed to transitioning away from fossil fuels at COP28 last year. Developing nations recognize the urgent need to reduce emissions to ensure a livable future.

However, the benefits of this transition must be equitably shared with frontline communities and not come at their expense. Therefore, it is essential to ensure that the climate transition is fair and aligns with inclusive development pathways for all.

This requires that developed countries enhance the Means of Implementation—including increased climate finance, technology transfer, and capacity building—to support developing nations like Bangladesh in achieving a sustainable and just transition

Developing countries are playing their role by submitting ambitious National Adaptation Plans (NAPs) and Nationally Determined Contributions (NDCs) which present a pathway on how countries will tackle greenhouse gas emissions and adapt to unavoidable climate change.

However, to ensure that these plans align with the needs, developed countries must also play their part and ensure that financing is made available and financing mechanisms are strengthened.

Finally, for any finance goal to be effective, climate finance must be provided on fair and concessional terms. Climate change and debt are intrinsically linked and developing countries are already paying a high price due to the changing climate. We can not afford to pile on more debt. Countries that are already spending large amounts of their budgets to pay back debts can not be pushed into further debt distress.

Developed nations must fulfil their financial pledges. With climate finance targets unmet and the financing gap continuing to widen, it is crucial that these commitments are transformed from empty promises into concrete actions. Furthermore, the need for transparency and accountability in climate finance has never been more urgent.

Bangladesh calls for a robust framework for rigorous reporting and meticulous accounting under the UNFCCC secretariat, rather than the OECD, to effectively track financial flows and ensure that every dollar is accounted for.

Also, Bangladesh calls for simplified, direct access to climate finance through streamlined procedures that reduce administrative burdens, emphasising that funds should primarily flow through Direct Access Entities (DAEs) to ensure greater ownership, faster implementation, and stronger alignment with national priorities.

Bangladesh is one of the most vulnerable countries to climate change. Managing climate risks has become a part and parcel of our development story. However, Bangladesh is not the only country facing these impacts. An agreement to provide climate finance at scale to developing countries should be a universal goal. This is needed to drive effective policy globally. No country is in this alone. The impacts felt by one country have reverberations around the world.

As we head into the final few months of 2024, the urgency to invest in a shared vision to halt the pace of climate change can not be overstated.