Transparency International Bangladesh (TIB) issued a scathing report today titled "Accessing Green Climate Fund (GCF) for Vulnerable Countries like Bangladesh: Governance Challenges and Way Forward."

The report, based on research conducted from January 2023 to May 2024, accuses the Green Climate Fund (GCF) of failing to uphold its core principles.

TIB alleges the GCF prioritizes international organizations over directly funding climate-vulnerable countries like Bangladesh. This, they claim, contradicts the GCF's stated mission. Further criticism centers on the GCF's struggles to collect funds from developed nations. 

The report suggests this shortfall forces the GCF to burden vulnerable countries with loans instead of offering grants.

TIB's findings essentially paint a picture of an organization failing to deliver on its core mandate twelve years after its inception. Dr. Iftekharuzzaman, the organization’s Executive Director, leveled a series of accusations against the GCF.

Dr. Zaman slammed the GCF's funding conditions, claiming they make it nearly impossible for developing nations to access resources.  He argued that intended beneficiaries haven't received adequate grants, and the GCF is failing to follow its own principles regarding fund disbursement. Delays in transferring funds were also highlighted.

Country ownership policies, according to Dr. Zaman, are being disregarded and lack clarity.  He further criticized the GCF's  practice of prioritizing international organizations like UNDP, IDB, ADB, and EBRD for funding.  This, he argued, directly contradicts the GCF's core mission.

Dr. Zaman took aim at the GCF's practice of issuing loans to vulnerable countries like Bangladesh, calling it discriminatory, disappointing, and a potential breeding ground for corruption.  He pointed out the renewal of UNDP's accreditation despite corruption allegations, suggesting the GCF is turning a blind eye to its own zero-tolerance policy.

Complex accreditation process to disburse funds

TIB's research exposes a complex and time-consuming GCF accreditation process, hindering direct access to funds for vulnerable countries like Bangladesh. The report also criticizes the GCF's  bias towards mitigation over adaptation efforts.  This, according to the research, results in a lack of prioritization for climate initiatives in vulnerable nations. 

The report highlights a significant funding gap for adaptation, with only $5.9 billion reaching developing countries despite a demand ranging from $215 billion to $387 billion over the past eight years.

The report emphasizes the Polluters-pay-Principle, which holds developed nations responsible for providing grant-based climate assistance to developing countries.  However, TIB's research indicates the GCF prioritizes loans, with 40.6% of its funding allocated as such compared to 41.6% for grants. 

This places an additional financial burden on countries already struggling with the impacts of climate change.

The TIB report also criticizes the seemingly arbitrary selection process for the National Designated Authority (NDA) responsible for GCF interactions.  A lack of clear policies surrounding NDA appointments raises transparency concerns. 

Furthermore, the report highlights the excessive time required for government entities to align with GCF standards.  Despite efforts to accredit four entities since 2018, none have received approval within the "country programme" framework. 

Conversely, the report exposes a separate Bangladeshi organization waiting two years for accreditation due to inadequate support from the GCF Secretariat.

The glaring funding gap

The report paints a grim picture of Bangladesh's funding gap. The country requires USD 12 billion to address climate challenges by mid-2025.  However, a meager USD 1.18 billion has been secured from national and international sources, representing only 9.9% of the critical need. 

While an additional USD 448.8 million comes from readiness funds and the GCF, this translates to just 3.7% of the total requirement.

Further analysis reveals a concerning allocation within Bangladesh itself.  The report highlights that Bangladesh received USD 256.4 million (76.9%) for mitigation projects compared to a meager USD 76.8 million (23.1%) for adaptation. 

Moreover, 75% of GCF funding for Bangladesh comes in the form of loans, placing an additional burden on the nation.

The report also criticizes the slow pace of disbursement. TIB reveals it took three years for the first installment of a GCF project to reach Bangladesh after approval.  Disappointingly, only 13.3% of funds allocated to Bangladesh's nine GCF projects have actually been disbursed.