Accessing Green Climate Fund (GCF) for Vulnerable Countries like Bangladesh : Governance Challenges and Way Forward

As Bangladesh is one of the worst affected countries by the global climate crisis, climate finance governance (CFG) is among the priority areas of Transparency International Bangladesh (TIB), with the objective of promoting integrity in climate finance through evidence-based research, advocacy, and civic engagement. As part of these efforts, the study titled ‘Accessing Green Climate Fund (GCF) for Vulnerable Countries like Bangladesh: Governance Challenges and Way Forward’ was launched on 14 May 2024. 1 The main objective of this study was to review the GCF funding process and analyse the challenges of accessing GCF funds by developing countries in general, and Bangladesh in particular, with a special emphasis on the governance process involved on both the supply and demand side. A set of recommendations based on data and evidence analysed in this research has also been put forward for relevant stakeholders.

The report shows that the GCF has mobilised only 2 to 3 per cent of the USD 100 billion per year, promised as climate finance by the developed nations. While the developing countries require USD 215 to 387 billion annually by 2030 for adaptation, GCF has been able to approve only USD 5.9 billion for adaptation since 2015. It indicates the wide gap between expectations and delivery of the GCF in terms of its role as the key funding institution created to address the adverse impacts of climate change in affected countries. On the other hand, the GCF is expected to deliver its responsibilities in supporting climate-vulnerable nations by providing increased technical support and funding through Direct Access Entities (DAEs). However, due to the lack of clarity in GCF’s Country Ownership Policy and guidelines, and inefficient implementation plan, countries eligible for GCF funds have not received the expected level of support from the GCF. Notably, 68.8 per cent of GCF-eligible countries do not have DAEs due to lack of sufficient readiness support from GCF to prepare for accreditation. Besides, 61.7 per cent of the eligible countries have not received Readiness and Preparatory Support Programme (RPSP) grants to prepare for DAE accreditation.

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