1. Bangladesh
Climate Public Expenditure and
Institutional Review (CPEIR)
Presenter: Dr. Shamsul Alam, Member, General Economics
Division, Planning Commission, GoB
PEI Regional Workshop (9-11 August 2012)
Acknowledgement: Poverty, Environment and Climate Mainstreaming (PECM) Project
General Economics Division, Planning Commission
1

2. Findings: Climate Expenditure
• GoB spends 6% to 7% of its annual combined budget on
climate sensitive activity
• Annual sum of US$1bn or just over 1% of GDP
• Climate spend increased in absolute terms over last two
years, but slight declined in relative terms
• From 2009/10 to 2011/12 , 77% of climate sensitive budgets
from domestic resources and 23% from foreign donor
resources
• 97% spent on adaptation
• Loan funding increased from 58% to 82% of foreign funds
between 2009/10 and 2011/12
• Climate Trust funds are very small share of total
• Social protection for climate vulnerable very large share of
finance, but much less attention

3. Findings: Policy
• Despite a lot of potential opportunities, private
sector involvement is at initial stage
• Many NGOs involved and danger of duplication
• Participation of stakeholders has increased, but
participation of poor people still limited
• No overall national policy that deals with
climate change in Bangladesh. BCCSAP
strategy does not specify which one, out of 28
adaptation modalities, should be prioritized
3

4. Findings: Institutional
• Complexity
– Financial (5 Mechanisms)
– Institutional (37 Ministries, Plus LG, Plus NGOs, Plus Others)
– Policy (Multi layered, Multi sectoral, Unbalanced Influences)
– Local Governance Structure (District Administration, Elected
Authorities)
• Urgent need for Co-ordination and Better Organisation
• Existing Architecture should be used to address Climate and
Climate Change on an Integrated Basis
– Budgets
– Policies
– Institutions
– Programmes
– Projects
4

5. Key Recommendations
• The inclusion of a Climate Change functional code in the
reviewed Chart of Accounts
• Develop means to identify climate actions more explicitly
and consistently in Ministry Budget Frameworks
• Existing institutional architecture for development
strengthened to plan, finance and implement CC
programmes.
• Institutions should emphasise vulnerability and climate hot-
spots
• Focus on balancing sector policies with overall climate
strategy
• Focus on strengthening the Annual Development Plan (ADP)
and Medium term Budgetary Framework (MTBF) processes
as a means to balance and co-ordinate policy.
5

6. Next steps
PECM project to work with Planning Commission,
Ministry of Finance and Development Partners:
CPEIR Report recommendations used to develop a
national Climate Fiscal Framework by Government
of Bangladesh with donor support
Climate budget code by Ministry of Finance,
include climate to Medium term budget framework
Develop climate fiscal framework for local
government with Ministry of Local Government
and Rural Development &Cooperatives
6