With
a population of 140 million, Bangladesh is one of the world's most
populated countries. It is also one of the most vulnerable to the
impacts of climate change. Cyclones, floods and droughts have long been
part of the country's history but they have intensified in recent years.
As a result of the long exposure to these hazards, Bangladesh is a
world leader in adaptation strategies but this has come with a heavy
price tag.
To find out exactly how much tax payers' money has been
absorbed by efforts to tackle the effects of climate change, the
Ministry of Finance has been working with the UNDP-UNEP
Poverty-Environment Initiative to launch its first comprehensive climate
change accounting system. The results of the financial review were
telling.
A crippling bill – Bangladesh currently spends
$1 billion a year, 6 to 7 per cent of its annual budget, on climate
change adaptation. The figure is more startling when seen in context of
the World Bank's recent estimation that 'Bangladesh will need $5.7
billion for adaptation by 2050'. The budget review revealed that
Bangladesh is spending nearly a fifth of that a year already. Contrary
to popular assumptions, the budget review showed that it is the
Bangladesh government, not international donors, which is picking up the
bill. Three-quarters of money spent on climate change in the country
comes directly from the government, while one-quarter comes from
international donors. The irony of the finding will be lost on few
people: the average European citizen emits as much carbon in 11 days as
the average Bangladeshi in an entire year. Yet it is the government and
the people of Bangladesh who are expected to pay for the escalating
costs. The expenditure review also revealed that poorer households need
far more to adapt to climate change. For the extreme poor and landless
households, the damage from climate change often significantly exceeds
their income, some by more than double the amount. In short, it is the
poorest communities in Bangladesh who are being landed with a crippling
development deficit.
New Government focus on climate –
The review created quite a stir within and beyond the Ministry of
Finance. It has moved the issue of climate change beyond the sole remit
of the Ministry for the Environment. By bringing together civil servants
from across diverse ministries, including from agriculture, disaster
management, water resources and local government, the initiative has
proven the relevance of climate change to all departments. For Manumur
Rashid from the Ministry of National Planning, it is a significant shift
in government thinking. For the first time, climate change is no longer
merely an additional demand, it is central to the country's development
prospects. For him, a very different 'budget day' is now in sight - one
on which the Minister of Finance will follow his presentation of a
national economic budget with the national climate budget.
Informing the global agenda
– The expenditure review is also making an impact beyond national
borders. Bangladesh's Minister for the Environment has used the findings
in statements in parliament and at international climate change
negotiations. As the country is a very prominent player in the
international scene, representing and fighting for the needs of other
Least Developed Countries (LDCs) also grappling with escalating climate
bills, the hope is that the figures will support a stronger negotiating
position at the global level to leverage the kinds of funds required to
fill the development gap created by climate change.