Sharmind Neelormi, an Economics professor at Jahangirnagar University, emphasized the importance of enhancing the knowledge base of climate budgeting in Bangladesh to facilitate better access to global climate financing. Neelormi highlighted that Bangladesh has historically excelled in climate research by integrating scientific and social science approaches, which should have bolstered the country’s global standing.
She commended the implementation of climate budgeting, noting its positive impact on institutional capacity within the Finance Division. Currently, approximately 25 ministries allocate around 28 to 30 percent of their budgets to climate-related initiatives, with the first climate-related budget being published in FY18 covering six ministries and divisions.
Neelormi provided examples of climate additionality in development spending, such as elevated roads with improved drainage in flood-prone areas like Feni and the development of faster-maturing rice varieties in the haor region to combat early floods due to climate change.
Despite these advancements, Neelormi warned of significant technical gaps in the system, particularly in tracking climate-related spending accurately. She raised concerns about insufficient enforcement of environmental regulations, citing instances where projects proceed without proper environmental impact assessments, potentially hindering sustainable economic growth in the country.
Addressing export pressures and financial challenges, Neelormi highlighted the need for Bangladesh to reduce carbon emissions to maintain export competitiveness, particularly as it nears LDC graduation. She praised initiatives by Bangladesh Bank to promote sustainable and green finance, but emphasized the need for more skilled professionals to ensure compliance with sustainability standards.
Neelormi urged for the establishment of a compliance system that supports small and medium-sized enterprises and proposed leveraging taxes, tariffs, and trade incentives to help producers manage sustainability costs effectively. She stressed the importance of bilateral agreements to secure market access during the transition period before LDC graduation.
On gender-responsive budgeting, Neelormi lauded Bangladesh’s efforts but criticized the lack of effectiveness assessment in spending data publication. She emphasized the need for precise sex-disaggregated data to inform policies effectively, especially concerning women’s safety, employment, and cybercrime.
Looking ahead, Neelormi identified the shrinking fiscal space, inefficient spending, weak institutional practices, and a crisis of confidence among investors and citizens as key challenges for Bangladesh’s upcoming budget cycle. She underscored the urgency of improving spending efficiency and rebuilding economic confidence to drive sustainable growth in the country.
