We are stunned by the revelation that more than half the funds allocated to climate change-related projects by the Bangladesh government over a 15-year period, close to a quarter of a billion dollars (or over Tk 2100 crore), were lost to irregularities and corruption, including bribery, embezzlement, and collusive practices. That's according to a bombshell new report out from Transparency International, Bangladesh, titled "Governance Challenges in Climate Finance in Bangladesh and Way Forward," that takes a forensic look at the work done by the Bangladesh Climate Change Trust Fund (BCCTF) from 2010-24.

After the Copenhagen climate change conference failed to reach an agreement on some sort of financing mechanism for rich industrialised countries to pay for the historic cost of climate change, which it was felt the poor countries could then use to cover some of the costs that they face today, when asked to say, forego cheap energy sources such as coal, the Bangladesh government under Sheikh Hasina took the step of creating this statutory body, through which all of Bangladesh's direct spending on climate change would be funnelled. Yet an utter lack of transparency always meant that we never quite knew what was happening at this fund - specifically, how it was operating.

TIB this week in its bombshell reports that between 2010 and 2024, 891 projects were approved under the BCCTF, with an estimated allocation of $458.5 million (Tk 3,896 crore). Of this, $248.4 million (Tk 2,110.6 crore) was reportedly lost due to corruption.

The irregularities occurred at multiple stages, including project approval, contractor appointments, and implementation. Solar streetlight projects were particularly vulnerable; a sort of cash cow for corruption. Out of 373 projects approved from 2019 to 2023, 216 (57.9%) involved solar streetlights, with equipment costs inflated by 47-57%. Embezzlement from these projects alone is estimated at $17-20.7 million (Tk 144-175 crore).

Other losses include Tk 175 crore in bribery during project approval, Tk 599.9 crore to collusive tendering and contractor recruitment, Tk 1,281.3 crore in embezzlement during implementation, and Tk 54.4 crore in bribes among supervising officials.

The TIB executive director, Dr Iftekharuzzaman, while presenting the findings, noted that despite being one of the most highly affected nations, Bangladesh has received negligible international funding. Although it is true that such entrenched corruption won't encourage the money to travel in our direction, it is also true that there aren't too many funds to start with. He referred to that infamous pledge at Copenhagen for the developed world to contribute $100 billion in international climate funds, but that has never materialised. And now with Trump back at the White House, it probably never will.

Commenting on governance gaps, TIB's report noted that from 2003 to 2024, Bangladesh required $10-12 billion for climate-related projects but received only $ 1.2 billion. The report also highlighted funding gaps in national climate plans, including the Nationally Determined Contributions (NDCs), the National Adaptation Plan, and others. Weak laws, policies, and planning frameworks, coupled with widespread corruption, exacerbate the problem.

TIB recommended updating the Bangladesh Climate Change Strategy and Action Plan 2009, amending the BCCT Act 2010, increasing budget allocations, prioritising vulnerable communities, enabling BCCT to access international funds, and establishing an independent monitoring body to supervise all climate projects. More or less start all over again, thinking anew. That may be the only way out of this mess.