As global leaders gather in Baku, Azerbaijan, to discuss finance at the 29th climate conference, the most vulnerable countries, such as Bangladesh, are demanding new and additional climate finance that does not increase climate debt.

The per capita climate debt of each Bangladeshi citizen has reached $80; This means approximately Tk 9,500.

And this debt was created in just 14 years, from 2009 to 2022, when Bangladesh started taking on climate-related projects. During this period, Bangladesh took out $12.78 billion in climate debt against multiple climate projects, according to the Change Initiative.

During the period, Bangladesh received grants worth only $268 million from the Green Climate Fund, Adaptation Fund and LDC Fund.

According to the report titled ‘Climate Debt Trap Risks for Bangladesh and Other Least Developed Countries’, Bangladesh’s significantly high per capita climate debt burden puts the country at risk of falling into a debt burden.

The report stated that at COP29, least developed countries should prioritize providing 100 percent grant-based adaptation financing by 2025 and activating debt relief mechanisms.

When the rich countries that pollute the environment the most and cause global warming do not keep their promises and do not distribute grants, not only Bangladesh but all underdeveloped countries fell into the debt trap.

In 2009, Bangladesh established the Bangladesh Climate Change Trust Fund (BCCTF), a pioneering government initiative for climate change adaptation and mitigation without relying solely on international aid.

With an initial annual allocation of Tk 700 crore from the national budget, BCCTF has supported more than 700 projects ranging from the construction of climate-resilient homes to the development of early warning systems, focusing on empowering local communities to adapt effectively.

But despite proactive measures, Bangladesh faces the “climate debt trap” as rich countries fail to meet their financial commitments under international climate agreements.

Even though Bangladesh contributes only 0.56 percent of global greenhouse gas emissions, Bangladesh ranked seventh in the long-term climate risk index.

Bangladesh, one of the most climate-sensitive countries globally; It faces climate impacts such as floods, hurricanes, sea level rise and salinity interference, which frequently affect its agriculture, water resources and coastal areas.

In 2022, Bangladesh completed the National Action Plan (NAP) on climate change (2023-2050) with the aim of reversing the effects of climate change.

NAP identified 113 major interventions in 11 climate-challenged regions across the country, requiring $230 billion.

Currently, the Bangladesh government spends about 6-7 percent of its annual budget on climate adaptation, of which about 75 percent comes from domestic sources.

However, according to experts, increasing adaptation measures, as stated in the NAP, will require seven times the current spending.

During the COP (conference of parties)15 in Copenhagen, rich countries committed to mobilizing $100 billion a year by 2020.

Failure to deliver on the promise puts underdeveloped countries like Bangladesh at risk of falling further into debt to finance necessary climate change resilience efforts.

Additionally, commitments on how the money will be distributed are unclear, raising fears among LDCs that the money will not reach the countries that need it most.

Bangladesh, along with other underdeveloped countries, will push for new and additional climate finance that will not increase climate debt, Syeda Rizwana Hasan, advisor to the ministry of environment, forest and climate change, told The Daily Star.

“Bangladesh advocates public funds from developed countries as the main source of financing,” he said, adding that the country would encourage rapid implementation of its 2019 commitment to double adaptation financing by 2025.

He said Bangladesh will also request rich countries to honor their financing commitments to developing countries.

The country will be vocal about operationalizing the loss and damage fund with simplified access and regular renewal cycles.

Although a decision was reached at COP-28 in Dubai to launch the fund with an initial commitment of $792 million, the fund is yet to become fully functional.

Apart from this, Bangladesh will emphasize that all countries must urgently fulfill their commitment to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels by 2100.

Rizwana added that this target is vital for minimizing severe climate impacts and is a priority that Bangladesh plans to defend at COP-29.

Rizwana will reach Baku on November 17.

This year’s COP is labeled “Finance COP”.

The global climate conference begins today with world leaders meeting in Baku on 12 and 13 November. Chief Advisor Muhammad Yunus will lead the Bangladesh delegation to the COP and he is scheduled to speak on November 13.

World leaders are expected to set a new fiscal target after 2025, building on the $100 billion commitment of developed countries.

According to the UNFCCC, developing countries will need $5.8 to $5.9 trillion for mitigation and $215 to $387 billion for adaptation by 2030.

Bangladesh will push for the fund to be activated immediately at COP-29 to facilitate project financing and ensure rapid implementation of adaptation and resilience-building initiatives.

The Ministry of Environment, Forestry and Climate Change will send a delegation of 28 people consisting of ministry officials, department representatives and climate experts.

In addition to negotiation efforts, Bangladesh planned a 100 square meter pavilion at COP-29. This area will host 13 side events and serve as a venue for bilateral meetings.

The pavilion is expected to function as a knowledge-sharing platform for both local and international stakeholders, including government officials, non-governmental organizations and youth groups, with the aim of encouraging participation and dialogue on climate issues.