Billions pledged, but how much has reached Bangladesh?

Development partners have committed US$199.65 billion to Bangladesh since independence and disbursed US$142.26 billion, but the Economic Relations Division’s published figures do not show how much was meant for climate action, so climate pledges cannot be set against money received.

The figures cover fiscal year 1971-72 to 2024-25 and leave about US$57.39 billion undisbursed. The ERD’s historical accounts, however, carry no consolidated figure for climate finance. They do not state how much was committed for adaptation and mitigation, how much has been disbursed or how much remains outstanding.

According to the ERD’s “Foreign Assistance to Bangladesh at a Glance (1971/72-2024/25)”, cumulative disbursements comprised $31.78 billion in grants and $110.48 billion in loans. Loans thus accounted for about 77.7% of the total, and grants for 22.3%.

The terms of assistance matter for a country highly exposed to climate risks, as loans add to public debt while grants do not.

The pattern held in FY25, when Bangladesh received $9.315 billion. Of this, $868.83 million came as grants and $8.446 billion as loans, according to the ERD’s “Overall Scenario of Foreign Assistance Management FY25”. Loans therefore made up around 90.7% of disbursements, against 9.3% for grants. Commitments that year stood at $8.382 billion, including $469 million in grants and $7.913 billion in loans.

These figures cover the overall foreign assistance portfolio and are not climate finance commitments or disbursements.

Environment, Forest and Climate Change Minister Abdul Awal Mintoo said access to the Loss and Damage Fund must be strengthened to ensure quick, easy, grant-based financing for vulnerable countries and affected communities. He said new and additional support was needed to address not only economic losses but also displacement, loss of livelihoods and other non-economic damage.

He said Bangladesh would press at COP31 for more grants rather than loans for adaptation and for addressing climate-induced losses and damage, along with simpler procedures for applying for and approving climate funds.

Provisional ERD data for July-September of FY27 show Bangladesh received $662.31 million in the first quarter. This included $196.51 million from the World Bank’s International Development Association, $162.11 million from the Asian Development Bank, $104.99 million from India, $44.66 million from Japan, $20.65 million from Russia and $14.66 million from China.

In the same period, the government signed agreements worth $1.273 billion, including $1.14758 billion under the Administration, ICT and Middle East wing. Two loan agreements and 11 grant agreements were signed. These figures, too, reflect overall assistance rather than climate-specific financing.

The ERD’s FY25 report lists environment, climate change and water resources among the sectors receiving external assistance. It also names the ERD’s Senior Secretary as the National Designated Authority for coordination with the Green Climate Fund under the UNFCCC, with the aim of securing Bangladesh’s fair share of international climate finance.

The published aggregates, however, do not show how much funding in these sectors was allocated to climate-related activities. Nor do they give a consolidated breakdown of climate finance approved, covered by signed agreements, disbursed and outstanding.