The study focuses on the critical role of Green Public Financial Management (PFM) in aligning fiscal policies with environmental goals. Recognising the pressing need for climate action and substantial financing, the Government of Bangladesh (GoB) has outlined ambitious plans and policies. The government’s commitment to a unified approach across sectors, third-party monitoring of the Climate Change Trust Fund (CCTF), and proactive initiatives like the National Adaptation Plan (NAP) showcase a dedication to transparency and responsible climate finance utilisation. Despite acknowledging the need for international support, there exists a significant financing gap in climate-related expenditures. There are also challenges that include fluctuating utilisation rate of climate budget and concerns about the Annual Development Programme (ADP) allocation for meeting renewable energy targets. The study provides key recommendations for enhancing Green PFM in Bangladesh, emphasising a transition to a more comprehensive framework, capacity development, multi-faceted approaches to enhance budget utilisation, and the integration of private sector financing. The goal is to ensure financial accountability, promote sustainability, and maximise the impact of climate finance in addressing climate challenges.
Authors: Fahmida Khatun and Foqoruddin Al Kabir
Publication Period: December 2023