Climate finance experts at a press conference urged the government to mobilise more green finance to combat climatic events by imposing a carbon tax and implementing the polluter pays principle.
The event, organised by the green organisation Change Initiative, was held on Saturday at the Dhaka Reporters鈥� Unity in the capital.
Chief executive of the organisation and climate finance expert M Zakir Hossain Khan highlighted that the government鈥檚 proposed budget for 2024-25 allocated less than one per cent of GDP to combat climate issues, which was insignificant compared to the estimated need of five per cent.
鈥楧isaster events have increased in the country due to climate change, so more funds are needed for immediate actions. A carbon tax and realising money from polluters can be alternatives,鈥� he added.
Zakir Hossain estimated that $3.4 billion in green finance was theoretically possible.
Analysing the proposed budget, the organisation found that as a signatory of the Paris Agreement, Bangladesh set a target to produce 4,114.2 megawatts of renewable energy by 2030.
To meet the target, at least Tk 3,086 crore is needed annually, but only Tk 100 crore has been allocated, which is just 0.2 per cent of the requirement.
A similar budget deficit was detected in other initiatives, creating an annual $23.4 billion budget shortfall for Bangladesh. Moreover, Bangladesh was receiving very little from global funds.
To address some of these crises, Change Initiative suggested the government imposing a carbon tax and the polluter pays principle. Imposing a 10 per cent tax on garment consumers could generate $2.13 billion annually.
The same tax could be imposed on other polluters, the CI suggested.
Finance minister Abul Hassan Mahmood Ali presented the highest budget of Tk 7,97,000 crore for financial year 2024-25 in the parliament on June 6.
The government proposed a Tk 42,206.89 crore budget to combat climate change in the 2024-25 financial year, which was Tk 5,154.95 crore higher than the previous proposed budget but only Tk 698.25 crore higher than the revised budget.
Climate finance experts emphasised that being one of the most climate-vulnerable countries, Bangladesh must increase allocations and ensure effective use of the budget.
Analysing the 7th climate budget of the country, they found that the government allocated the climate budget among 25 ministries or departments.
