Per capita climate debt soared to $79.61

Bangladesh had zero per capita climate debt in 2009, which soared to $79.61 (Tk 9,485) in 2022, according to a new study, findings of which were discussed on Sunday in the capital.

The study conducted by Change Initiative (CI) said the current system of climate finance is pushing Bangladesh and other Least Developed Countries (LDCs) into a debt trap, hindering their ability to address the urgent challenges posed by climate change.

These critical findings were discussed at a national dialogue hosted by CI at the CICC venue of CIRDAP.

The event convened policymakers, donor agencies, civil society representatives, and climate finance experts to explore solutions for sustainable climate finance in LDCs.

The dialogue focused on advocating for a shift towards grant-based climate finance and promoting international cooperation to ensure that Bangladesh and other LDCs are not saddled with unsustainable debt.

Chief Executive of Change Initiative, M. Zakir Hussain Khan, while presenting the keynote, said, "Climate change is a global problem, which cannot be bounded by geographical boundaries. The impact of this change on farmers in Mymensingh, Gaibandha in Bangladesh is the same as it is for farmers in Assam-Tripura-Rajasthan in India. Therefore, in order to deal with this change, sustainable action is necessary to protect natural rights for the larger interests by submerging the small interests."

Talking about recommendation he stated that fundamental shift is needed in climate finance.

LDCs require $480 billion annually by 2030, with adaptation finance being 100 per cent grant-based from 2025. Debt cancellation and innovative mechanisms like 'Debt-for-climate swaps' are crucial for freeing up resources for climate action.

The chief guest of the event, Syeda Rizwana Hasan, adviser, Ministry of Environment, Forest and Climate Change, emphasised the importance of climate justice and called for greater international support to address the challenges faced by vulnerable nations.

Rizwana, in her speech, emphasised that climate finance must focus on justice and equity, ensuring resources reach vulnerable communities to build resilience.

She noted the challenges posed by an ultra-capitalistic system and called for alternative approaches that prioritise people over profit.

She also highlighted the need to empower young people, who are rightly demanding climate justice, to lead nature-based solutions and avoid corporate traps in building a resilient future.

Dr. S.M. Munjurul Hannan Khan, executive director of NACOM, presided over the event.

One of the findings of the report, "Equity and Justice in Climate Finance: Climate Debt Trap Risks for Bangladesh and Other LDCs" says that LDCs are disproportionately reliant on loans rather than grants for climate action, despite contributing minimally to global emissions. This reliance on debt financing is exacerbating their economic vulnerabilities and diverting resources from essential public services.

Other key findings from the report are:

* Bangladesh's multilateral per capita climate debt ($2.04) is three times higher than the average for other climate-vulnerable LDCs ($0.85). This underscores the significant financial burden facing the country.

* Only 30.74 per cent of pledged international climate funds have been disbursed to LDCs, leaving them with insufficient resources to implement adaptation and mitigation measures.

* High Loan-to-Grant Ratio: For every dollar of climate finance received as grant by Bangladesh, 95 cents are in the form of loans, creating a substantial debt burden.

* There is a global imbalance in climate finance, with more funding directed towards mitigation projects - which are often financed through loans - rather than adaptation efforts that are crucial for building resilience in vulnerable communities.

The average adaptation-mitigation ratio for LDCs is 0.74:1, which should've been 1:1.

The dialogue featured a diverse range of speakers from organisations such as UNDP, the Embassy of the Kingdom of the Netherlands, IDCOL, BRAC, WFP, the World Bank, Transparency International Bangladesh, Bangladesh Environmental Lawyers Association, BRAC University, BRAC Bank, Bangladesh Supreme Court and Bangladesh Climate Change Trust.

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