As Bangladesh faces increasingly severe impacts of climate change, the government is placing climate resilience at the heart of its development strategy. The proposed national budget for FY2026-27, estimated at around Tk 790,000 crore, reflects a strong commitment to achieving the Sustainable Development Goals (SDGs) through climate-responsive investments and green growth initiatives.
The government plans to increase spending on climate-resilient infrastructure, water resource management, renewable energy, and social protection programmes to address growing risks from cyclones, floods, river erosion, droughts, salinity intrusion, and urban waterlogging.
The National Economic Council (NEC) recently approved an Annual Development Programme (ADP) worth Tk 309,000 crore for FY2026-27, with climate adaptation, disaster-resilient infrastructure, and sustainable development identified as key priorities. According to Planning Commission sources, 148 projects have been included under the Bangladesh Climate Change Trust Fund, while around 80 additional climate-related projects are expected to be implemented through private-sector participation.
Officials involved in budget preparation said climate change has become one of the most significant barriers to achieving the SDGs, particularly in the areas of poverty reduction, food security, access to clean water, affordable energy, and sustainable urban development. As a result, climate resilience is being increasingly integrated into public investment planning.
The Ministry of Finance is also focusing on mobilising international climate finance, attracting foreign assistance and encouraging private investment in green industries. Tax and duty incentives for renewable energy and environmentally friendly technologies are being reviewed to stimulate greater private sector participation.
Development partners continue to support Bangladesh's climate agenda. The World Bank has approved US$500 million to strengthen green and climate-resilient development, while the Asian Development Bank (ADB) is providing US$400 million in policy-based support for implementing the National Adaptation Plan.
Special attention is being given to climate-vulnerable regions. The Local Government Engineering Department (LGED) is implementing a Tk 12.69 billion climate-resilient livelihoods project in the Haor and Barind areas. The programme includes construction of rural roads, markets, landing stations and shelters, alongside improved water management systems and vocational training for youth.
Climate adaptation is also being mainstreamed into the health sector. Bangladesh has recently adopted the Health National Adaptation Plan 2026-2031, aimed at strengthening climate-resilient health systems and enhancing post-disaster healthcare services.
In urban development and energy sectors, green investment is gaining momentum. Under a joint initiative of SREDA and UNDP, low-carbon urban development projects are being implemented in Dhaka and Chattogram, promoting energy-efficient buildings and wider use of solar power.
Safe water supply remains another major priority. A World Bank-financed project worth US$280 million is expected to provide climate-resilient water services to more than one million residents in Chattogram.
Climate change is no longer merely an environmental concern; it has become a critical economic and development challenge. The FY2026-27 budget demonstrates the government's intention to align climate adaptation, renewable energy, social protection and sustainable growth within a single policy framework. However, experts emphasise that effective implementation, institutional coordination and increased international climate financing will be essential to translating these commitments into tangible outcomes.
As Bangladesh advances toward the SDGs, the success of its climate-resilient development strategy will largely depend on how effectively these budgetary allocations are implemented on the ground.
According to the preliminary estimates of the Ministry of Finance, the possible size of the budget could be Tk 930,000 crore, the size of the budget for the current 2025-26 fiscal year is estimated at Tk 790,000 crore. Due to political deadlock and economic crisis, the interim government at that time reduced the size of the budget. That is, it announced a budget smaller than necessary. It is not possible to implement even that smaller budget. However, after the elected government comes to power, it is going to announce a huge budget again.
