1 Sustainable Development in Bangladesh: Bridging the SDGs and Climate Action

2 Shababa Haque1*, Naznin Nasir1, M. Feisal Rahman1,2, Saleemul Huq1,3

1
International Centre for Climate Change and Development (ICCCAD) at Independent
University, Bangladesh (IUB), Aftabuddin Road, Plot 16, Block B, Bashundhara R/A,
Dhaka, 1212, Bangladesh

Department of Environmental Science, School of Environmental Science and

2

Management at Independent University, Bangladesh (IUB), Aftabuddin Road, Plot 16,

Block B, Bashundhara R/A, Dhaka, 1212, Bangladesh
3
International Institute for Environment and Development (IIED), 80-86 Gray’s Inn
Road, London, WC1X 8NH, UK

4 *
Corresponding Author, Email: shababa.haque@live.com

5 Abstract
6
7 The UN’s Sustainable Development Goals (SDGs) or the 2030 Agenda is the successor of the
8 Millennium Development Goals (MDGs) and has a timeline ranging from the year 2015 to
9 2030. Constituting of 17 goals and 169 targets the SDGs aim to address the root causes of
10 some of the most pressing environmental, social and economic problems being faced by the
11 world.
12
13 For Bangladesh, a country that performed particularly well at the MDGs, the SDGs present a
14 great opportunity to build on the progress made by the MDGs and make transformational
15 changes that can help boost the country’s overall development. The highly ambitious SDGs
16 have 17 goals touching all sectors from education and health to building sustainable
17 infrastructure. Although the wide scope of the agenda has the potential to see greater change
18 it also faces substantial barriers. For Bangladesh some of main barriers will include the effects
19 of climate change that can potentially offset the achievements of many of these SDG targets
20 and the lack of funding mechanisms for implementing necessary actions.
21
22 The impacts of climate change will be of concern for a country like Bangladesh, which is
23 already vulnerable to environmental effects. Given the influence the Climate Agenda and the
24 2030 Agenda have on each other, they play a significant role in the success of one another. As
25 such, while addressing the SDGs it is of key importance to implement national plans and
26 policies that incorporate SDG targets as well as climate action.
27
28 Financing the SDGs is also a critical issue for Bangladesh as most of funding needs to be
29 from domestic resources. It is estimated that the SDGs will cost Bangladesh up to $ 93.9
30 billion annually. For the implementation to be successful it needs a variety of financial
31 resources: public and private, national and international, concessional and non-concessional.
32 It is also important to establish a framework that can ensure that climate finance is new and
33 additional to ODA pledges and addresses issues of financial accountability and good
34 governance.
35
36 For Bangladesh to be as successful in achieving the Sustainability Development Goals, as it
37 was the Millennium Development Goals, the county will need to treat climate change as a
38 cross-cutting issue that will affect the ability to attain any of the other goals. Only through

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39 developing national plans of action that are focused on climate resilience and implementing
40 effective financial mechanisms will it be possible for Bangladesh to fulfill these
41 transformational goals.
42

43 1. Background
44
45 2015 was a remarkable year for transformational change. It was year the international
46 community came together and agreed to the Paris Agreement on climate change, the Sendai
47 Frameworks for Disaster Risk Reduction, and the Sustainable Development Goals (SDGs),
48 also known as the 2030 Agenda. Although the three frameworks are housed under various
49 institutions, the overarching theme of these agreements is sustainability and climate resilience
50 (Huq, 2016b). If addressed cohesively, these initiatives have the potential to not only support
51 the efforts of Least Developed Countries (LDCs) like Bangladesh to socially and
52 economically develop, but do so in a way that renders them resilient against climate change -
53 one of the largest threats this country is facing. Unlike the other goals, failure to address
54 climate change, whether through mitigation or adaptation, will greatly obstruct affect the
55 ability to achieve almost any of the other goals. As such it is important to prioritizeto give
56 specific attention to climate change when implementing national actions for the achievement
57 of the SDGs.
58
59 The SDGs were preceded by the Millennium Development Goals (MDGs), which were
60 established in the year 2000. While the relatively simple and straightforward MDGs led to
61 many success stories around the world, some important global issues were left out. A 2015
62 UN assessment of the MDGs noted that, “progress towards the MDGs has repeatedly shown
63 that the poorest and those disadvantaged because of gender, age, disability or ethnicity are
64 often bypassed” (Thomson, 2015). Learning from the mistakes of the MDGS, the SDGS
65 consist of 17 all-encompassing development goals, which are broken into 169 targets, with an
66 attempt to address structural causes of issues instead of only addressing surface problems.
67 Also unlike the MDGs which officially required only developing countries to act, it was
68 recognized that both developing and developed countries have to responsibilities to ensure
69 sustainable development globally.
70
71 In terms of achieving the MDGs, Bangladesh is seen as a success story by many. The MDGs
72 played a substantial role towards the country’s development. Bangladesh managed to make
73 substantial progress in the areas of poverty reduction, primary education, infant mortality and
74 maternal care (Bhattacharya, 2015). Although Bangladesh was on track for most of the
75 MDGs, there were certain areas that were not fully addressed and need immediate attention:
76 for instance, more work needs to be done on the issue of wealth inequality and extreme
77 poverty in remote islands (such as char lands)(economic growth and social development in
78 Bangladesh is accompanied by inequality especially income inequality Prothom Alo, 2015)
79 (Matin, 2017). Bangladesh’s performance at the environmental sustainability goal under the
80 MDGs was not satisfactory either. While the MDGs targeted 5% of terrestrial and marine
81 areas to be protected, Bangladesh only managed to protect 1.81% and 1.34% respectively.
82 The target also demanded more of the country’s land area to be covered with trees, and
83 pointed out the need to provide safe and sustainable sources of water for all (GED, 2015a).
84
85 The SDGs, with their comprehensive set of targets, have the potential to meet the
86 development gaps of the MDGs while also building on the success of the MDGs. In terms
87 of protecting the environment, the SDGs have dissected the broad goal of environmental
88 sustainability to give equal importance to climate change (goal 13), life under water
89 (goal 14), clean water and sanitation (goal 6) and life on land (goal 15) (UN, 2016). By
90 doing so, it ensures all these agendas are given individual priority. Under the SDGs,

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 91 Bangladesh can address more targets within these separate goals, which will help resolve
92 many intricate environmental problems the country faces, including climate change.
93
94 At the same time, in many ways, the elaborate priorities of the SDGs can make it a difficult
95 task to achieve them. One of the key obstacles for achieving the SDGs in Bangladesh is the
96 amount of funding required for implementing actions under these goals. Funding for the
97 MDGs came from the public sector of Bangladesh; for the success of the SDGs it is essential
98 for the private sector to be involved (The Daily Star, 2015). Given Bangladesh’s climate
99 vulnerability, another significant barrier towards the achievement of the SDGs, will be the
100 long term and short-term impacts of climate change, which will not only impact goal 13 of the
101 SDGs but will directly and indirectly affect almost all other sectors in the country.
102
103 The primary focus of this chapter is to discuss the need for bridging SDGs and climate action
104 in order to achieve climate resilient development in Bangladesh. In doing so the chapter will
105 depict ways in which climate change may impact the successful achievement of the SDGs as
106 well as discussing how the implementation of SDGs may facilitate climate resilient
107 development. In addition to this, the chapter will also elaborate on the means for addressing
108 some of the key challenges associated with financing the SDGs and highlight some aspects of
109 aligning SDGs and climate change within the national regulatory framework.
110

111 2. The SDGs and the Climate Change Connection; Bangladesh Perspective
112
113 According to the IPCC 5th Assessment report the impacts of climate change will burden
114 countries that are already poverty-stricken, this includes most of the Least Developed
115 Countries (LDCs) (IPCC, 2014). Bangladesh due to its geographic location is susceptible to
116 climate disasters. and Iits high population density and incidence of poverty makes it highly
117 vulnerable to the impacts of such calamities. It has been estimated that more than 70 million
118 people could be affected by climate change in Bangladesh (Alam and Laurel, 2005). It is also
119 denoted that although most parts of the country are prone to climate impacts it is the
120 population residing in the coastal areas that are more at risk (Alam and Laurel, 2005).

121
122 Therefore, given the multifaceted nature of the goals and targets under the SDGs there are
123 many instances of overlaps and tradeoffs; of which the tie between climate change and the
124 achievement of SDGs in Bangladesh is undeniable. The two issues are highly interlinked with
125 one another; on one hand the climate change impacts of climate change in Bangladesh can
126 prevent some of the key SDG targets from being met while on the other hand addressing the
127 SDG targets will helpwill pave the pathways for building a the framework for a more climate
128 resilient nation.
129
130 2.1 The Inevitable Interlink of SDGs and Climate Change
131
132 Although climate action is a standalone goal under the SDGs the effects of climate change in
133 Bangladesh are so overwhelming that it will impact almost all the components of the SDGs;
134 from poverty eradication to water resources, and from sustainable cities to economic growth,
135 climate change manages to effect all aspects of sustainability.
136
137 Through making the disadvantaged population more deprived climate change will not only
138 enhance pre-existing inequalities (goal 10) within Bangladesh but as the country becomes
139 increasingly affected by a changing climate implementing effective climate action (goal 13)
140 will also become more difficult (Wright, Huq and Reeves, 2015). Thus the development gains

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141 of the country remainsremain fragile in the face the of climatic impacts This will result in
142 making the country more susceptible to climate change and less able to achieve the SDGs.

143 2.1.1 Climate Change Effects on Poverty, Hunger and Health

144
145 In Bangladesh climate change will impact the country’s agriculture and food production.
146 According to Wassmann et al. (2009) the rising temperature is already reaching critical levels
147 during the susceptible stages of the rice plants, which could potentially affect rice production.
148 The increase in temperature also leads to rise in sea levels, which affects coastal and deltaic
149 rice production in Bangladesh. According to aA World Bank report noted that climate change
150 will result into reduction in long-term rice production by an average of 7.4 percent each year
151 for the period of 2005-50 which translates to about USD26 billion in lost agricultural GDP
152 over that period (Yu et al. 2010). The report further indicatednoted that Bangladesh will lose
153 in total about USD121 billion or 5% of the national GDP during the period 2005-50.
154 Bangladesh is largely dependent on the fisheries sector, and climate change induced salinity
155 can lead to scarcity of various breeds of fishes that are unable to breed in saline water (Allison
156 et al. 2009). It has also been suggested that loss of small fish species will have significant
157 impact on animal protein intake of poor women and children (Dasgupta et al 2014).
158
159 The issues of poverty and hunger have a knock on effect on one another. According to a brief
160 paper by IIED (Wright, Huq and Reeves, 2015) if Bangladesh has lower crop yields due to
161 climate change there could be at least 15% net increase in poverty (Wright, Huq and Reeves,
162 2015). Climate change in Bangladesh thus is detrimental to existing poverty situations by
163 affecting the livelihood of the group that is already vulnerable. For example: studies have
164 indicated that many marginal communitiesThose living in the south west coastal Bangladesh
165 are loosing their freshwater based livelihood due to salinity intrusion and climate vulnerable
166 zones such as the coastal areas of the country are often forced to migrate under unfavorable
167 circumstances leaving them in far worse socio-economic conditionsexpediting the rural to
168 urban migration. Such displacements are exerts further pressure on the already over burdened
169 urban systems and It will also have an impact especially on the urban poor living in climate
170 vulnerable conditions (Alam and Rabbani, 2007).
171
172 The effects of climate change are detrimental to human health. The aftermath of climate
173 induced natural disasters such as floods and cyclones contaminate water sources and spread
174 diseases like diarrhea, cholera and other water borne illnesses. It is also seen that salinity
175 intrusion in coastal areas can have negative effects on pregnant women. Impact of climate
176 variability on three childhood diseases (diarrhea, fever, acute respiratory infections) in
177 Bangladesh has been reported to be significant (Mani and Wang, 2014).
178 Research has confirmed that it is most often the poorest of the poor who are displaced due to
179 climate change, and pushed to migrate to nearby cities. Unfortunately, life in the city does not
180 always provide the expected relief. Cramming in urban slums, with little access to basic
181 services and not always with job security or land tenureship rights, these migrants fall into a
182 cycle of poverty Climate refugeesPoor people displaced by climatic disasters are who end up
183 living in urban slums or other particularly susceptible to malnutrition and vector borne
184 diseases from living in poor environmental conditions (GED, 2009).
185
186 As such, without dealing with such unavoidable As such, unless the threats of climate change
187 are dealt with it will be difficult not be possible to see the sustainable future the SDGs plan on
188 building for Bangladesh. Actions for achieving goals such as eradicatinge poverty (SDG 1),
189 ensuringe food security (SDG 2) or promotinge health and well-being (SDG 3) in Bangladesh
190 will not be effective without addressing the core climatic issues looming over the country..
191
192 2.1.2 Climate Change Impacting Water Scarcity and Marine Resources
193

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194 Climate change has a significant impact on water and marine resources in Bangladesh. The
195 country is prone to extreme climate events such as cyclones and storm surges that have an
196 intense effect on the water supply and existing sanitation infrastructures (GED, 2009). Due to
197 Bangladesh’s high population density climate change induced changes to the country’s
198 hydrology and water resources will have severe impacts on the country’s economy, where
199 people are reliant on surface water for irrigation and fisheries (Denissen, 2012). As the
200 country’s river salinity increases due to climate change there will be a shortage of drinking
201 water and detrimental effects on the aquatic ecosystems in the Southwest coastal areas of
202 Bangladesh (World Bank, 2015), making it difficult to achieve goal 6 of the SDGs, which
203 aims to ensure water efficiency, desalination and supply of freshwater to address issues of
204 water scarcity.
205
206 The barriers set by water related issues in Bangladesh are not just limited to goal 6, it will also
207 have an impact on the achievement of goal 14 of the SDGs, which is focused on minimizing
208 ocean acidification and protecting marine ecosystems. A recent World Bank study denoted
209 that increase in sea levels will have a profound impact on the lives of the coastal population
210 making it crucial to address goal 14 with regard to the on going and impending effects of
211 climate change. Some of the main impacts of climate change on Bangladesh’s coastal regions
212 include sea level rise, salinity intrusion, increase in frequency and intensity of cyclones and
213 reduction of fresh water sources (Jekobsen et al. 2002). It is also noted that as the sea level
214 rises there is a consequent increase in water salinity across the coastal regions (Faisal and
215 Parveen, 2004). Hence salinity intrusion threatening fresh water ecosystems can potentially
216 impact both fresh water and marine fisheries (Allison et al. 2009), which will directly impact
217 goal 14 and indirectly impact goal 2 (hunger) of the SDGs.
218
219 2.1.3 Climate Change Hinders Safe and Inclusive Settlement
220
221 According to the IPCC fourth assessment report climate change exposes the Bay of Bengal to
222 intense extreme weather events such as storms, tidal flooding and cyclones, which disrupts
223 the livelihood of the coastal population and damages infrastructures along the coastal belts
224 (Cruz et al., 2007). Although Bangladesh has made substantial improvement in reducing
225 cyclone related fatalities, cyclones still pose a severe threat to coastal areas. The most affected
226 sectors are housing and agriculture (GED, 2009). A World Bank Study (2010) reported that
227 during an average cyclone the housing sector suffers damages and losses equal to 900 million
228 USD. Building of climate resilient infrastructure, road networks and emergency shelters can
229 be useful in for saving lives as well minimizing the other losses.
230
231 Natural calamities due to climate change tend to be one of the key underlying reasons for
232 internal migration, which adds to the problem of unplanned urbanization (Black, 2010).
233 Approximately 40% of the urban population in Bangladesh resides in unplanned slums in
234 major cities, which are already vulnerable to environmental calamities (Denissen, 2012). As
235 climate migrants add to this process of rapid urbanization there are concerns regarding human
236 security and environmental degradation within the inhabited area (Huq, 2001). Lack of
237 necessary infrastructure, proper employment opportunities and suitable environmental and
238 health facilities make the urban poor increasingly vulnerable to climate-induced disasters
239 (Denissen, 2012). Although it primarily affects goal 11 which aims to ensure safe, resilient
240 and sustainable human settlements, it also has an indirect effect on the achievement of goal 8
241 (job opportunities for all) as most of the migrants remain unemployed for a long period of
242 time after their displacement.
243
244 The impacts of climate change also act against the targets set by goal 5 (empowering women

245 ),A as women in Bangladesh are disproportionately vulnerable to the effects of climate
246 change , it can be said these adverse impacts hinder the achievement of the targets set by goal

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247 5 (empowering women). Studies show that when there is a shortage of water it is usually the
248 women and children who are usually sent to fetch water from further away, which not only
249 adds an additional burden of responsibility, preventing them from engaging in education or
250 social activities, but also risks their health and safety (GED, 2009).
251
252 2.2 SDGs with Climate Resilience
253
254 Climate change is an on-going phenomenon that is likely to have both short term and long-
255 term impacts. However the SDGs are time bound and goal oriented, with a vision to
256 transform the world by 2030. Many of the goals of the SDGs are coherent with the actions
257 taken for combating climate change. In fact, the Paris Agreement has set the stage to address
258 climatic challenges through various adaptation and mitigation efforts that also pave theset the
259 base pathway for SDG success (Naware, 2015). Sindico (2016) upon assessing the 2030
260 Agenda and the Paris Agreement noted that the latterer contained both direct and indirect
261 references to the SDGs and sustainable development and argued that such close relationship
262 between the two documents underscores the need to integrate the SDGS into the
263 implementation of the Paris Agreement. The discussion in this section will briefly point out
264 how addressing climate change and working towards SDGs may be mutually beneficial.
265
266 Goal 7 of the SDGs is focused on ensuring clean energy for all which will contribute to
267 minimizing greenhouse gas emission. The Bangladesh government aims to provide access to
268 electricity for all by the year 2021 (BIDA, 2015). While this is an ambitious goal, considering
269 that natural gas, Bangladesh’s main source of energy, is expected to run out in the next few
270 years, the country will have to make a shift in its energy mix and focus on alternative sources
271 of energy. In this regard, unlike already developed nations Bangladesh still has the choice to
272 make a shift towards sustainable and renewable energy sources to expand its energy sector.
273 and Uusing clean sources of energy for doing fulfilling the needs of the growing population
274 will help reach the remotest corners in Bangladesh and build resilience amongst local
275 communities by improving their standard of living. so will eventually lower emissions as well
276 as help the off-grid vulnerable communities build resilience against the warming climate.
277
278 Rapid and unplanned urbanization remains a key concern in Bangladesh, as it leaves cities
279 highly vulnerable to the impacts of climate change. Goal 9 of the SDGs, which promotes
280 sustainable industrialization, will help Bangladesh innovate and build infrastructures in a
281 responsible and environmentally friendly fashion, making sure they create a healthy
282 environment for those using them.. Goal 11 on the other hand will also lead to building safe
283 and sustainable cities and human settlements. Addressing these goals in turn will lead to
284 enhancing urban climate resilience in Bangladesh and reducing the possible impacts of
285 climate change on the city dwellers. .
286
287 Similarly, efforts and policies for combating climate change such as the Kyoto Protocol also
288 enforces the need for clean energy options to reduce greenhouse gas emissions in the
289 atmosphere which not only contributes to goal 7 but also helps goal 8 (employment). For
290 example in China at least 1.7 million people are already employed in the renewable energy
291 sector. Thus investing in industries focused on sustainable low carbon development will also
292 produce more job opportunities for Bangladesh (Figueres, 2015).
293
294 Lastly goal 16 aims to build effective, inclusive and accountable institutions at all levels, by
295 doing so it will be possible to establish good governance within various institutions in
296 Bangladesh. A study conducted by Bhuiyan (2015) denoted the lack of good governance in
297 terms of addressing climate change as one of the key barriers for successful climate
298 adaptation. that undermines adaptation capacity in the near future.

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299 3. Aligning Implementation of SDGs and Climate Goals with National Policy
300 Framework

301 The Agenda 2030 sets ambitious goals for the global community to achieve development in
302 an inclusive and environmentally sustainable manner. Institutional structures in many
303 countries around the world are often unable to integrate the economic development with
304 environmental protection. Furthermore, as discussed, climate change being related to many of
305 the SDGs is anticipated to further delay the progress towards achieving the agenda 2030. The
306 Paris Agreement in that regard offers an aspiring long-term goal, global commitments, and a
307 range of necessary tools, including commitment to finance from developed countries to
308 address climate change (Maxwell, 2015). In addition, Bangladesh is also a signatory of the
309 Sendai Framework on disaster Risk Reduction, which was also agreed upon in 2015. All three
310 global agreements will have to be implemented from 2016 to 2030.

311 Huq (2016b) argued that climatic goals can be categorized as mitigation and adaptation goals
312 and therefore, collectively across the three agreements there are 20 goals- 17 goals for the
313 2030 Agenda, 2 goals for the Paris agreement and the DRR goal for the Sendai Framework.
314 Although the 20 goals originated from different constituencies and ran through separate
315 negotiation tracks to reach consensus, with regards to implementation there is considerable
316 overlap and opportunities for synergies (as discussed in Section 2) which should be
317 considered for effective and successful implementation of the three agreements (Huq, 2016b).
318 For successful implementation of the agreements Bangladesh needs to include the key goals
319 in national and sectorial policies.

320 The Government of Bangladesh has already started acting towards that with the Planning
321 Commission at the Ministry of Planning taking lead in ensuring synergies among all 17 goals
322 (Huq, 2016a). The Planning Commission has of Bangladesh has mapped the SDGs under
323 different ministries, identifying lead ministries that will be in charge of implementing actions
324 for specific goals. The overlap between the goals and ministries are also determined through
325 this approach and this ensures that so that the ministries are better able to collaborate when
326 planning actions.

327 The Planning Commission is responsible for the long term, medium term and annual
328 development plan in Bangladesh. The 7th FYP prepared by the Commission coincides with
329 the final year of MDGs and the launch of UN’s post-2015 Sustainable Development Goals
330 (SDGs) providing the country with an opportunity for integration. The 7th FYP has dedicated
331 a chapter on Environment and Climate Change and hence, even though the Paris Agreement
332 was formulated later, climate change adaptation and mitigation in a broader context were
333 already taken into consideration in the 7th FYP. The development approach of the Plan is in
334 line with the global 2030 agenda for higher growth with appropriate measures for
335 environmental sustainability (GED, 2015b). The plan intends to ensure growth and
336 acceleration in a broad-based inclusive fashion, and provide benefits to all citizens. As such
337 eradication of extreme poverty remains one of the central principles of the strategies of the
338 7th FYP. The sustainable development strategy of the Plan revolves around three key themes:
339 (i) Climate Change Management and Resilience (comprised of adaptation and mitigation) (ii)
340 Environmental Management; and (iii) Disaster Management (GED, 2015b).

341 The Perspective plan of Bangladesh 2010-2021 is the Government of Bangladesh’s roadmap
342 for accelerating the country’s growth while building the foundation for eradicating poverty,
343 inequality and human deprivation 1 has set a goal to make the country a middle income
344 country by 2021. The Perspective Plan aims to help Bangladesh transform to a middle income
345 country by the year 2021. The document emphasizes on the need for building sustainability

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346 through ensuring protection from climate change related impacts. As such the Vision 2021 is
347 in line with the overarching objectives of the Sustainable Development Goals as well as
348 climate plans and policies in place.

349 The plan will pursue “a development scenario where citizens will have a higher standard of
350 living, will be better educated, will face better social justice, will have a more equitable socio-
351 economic environment, and the sustainability of development will be ensured through better
352 protection from climate change and natural disasters” (GED, 2012).

353 With regards to addressing climate change, the Bangladesh Climate Change Strategy and
354 Action Plan (BCCSAP) (2009) remains the key strategy document till 2018 and includes both
355 adaptation and mitigation actions. The document is published by the Ministry of Environment
356 and Forests (GoB). It consists of 44 actions to be taken under 6 strategic pillars:

357 I. Food Security, social Protection and health

358 II. Comprehensive disaster management

359 III. Infrastructure

360 IV. Research and knowledge management

361 V. Mitigation and low carbon development

362 VI. Capacity building and institutional strengthening

363 The overarching aim of the BCCSAP is to build capacity and enhance climate resilience in
364 Bangladesh. The programs under the BCCSAP have synergies with the Vision 2021 and aims
365 to strengthen overall Bangladesh’s climate action strategy.

366 The document lists 44 actions under six pillars to build capacity and climate resilience. For
367 implementation of the actions the Government set up two separate funds; domestic revenue
368 funded the Bangladesh Climate Change Trust Fund (BCCTF) and the donor funded
369 Bangladesh Climate Change Resilience Fund (BCCRF). Collectively these two funds have
370 invested over a billion dollars over the past six years.

371 Bangladesh despite being one of the least emitting nations has shown its commitment and
372 solidarity with the global community in developing clean energy and reducing emission to
373 flight climate change. Bangladesh’s Intended Nationally Determined Contributions (INDC)
374 submitted to UNFCCC in 2015 sets out a plan to reduce an unconditional 5% and a
375 conditional 15% of Green House Gas (GHG) emissions from business as usual levels by 2030
376 from the power, industry and transportation sectors. According to the Renewable Energy
377 Policy (2008) Bangladesh intends to increase the usage of renewable energy and targets to
378 meet 10% of the total power demand from renewable energy sources by 2020. However, it
379 should also be mentioned that the as the sources of natural gas will be depleted, over time the
380 use of coal is projected to rise substantially from a meagre 3% at 2015 to 50% by 2030 (GED,
381 2015b). Such a striking increase in the usage of coal contrasts the government’s commitment
382 to the Paris Agreement and the SDG 2030 agenda.

383 Apart from the already discussed policies there are several other national policies and plans
384 that have already been formulated. Table 1 provides a tentative list of the national plans and
385 policies that are to be considered while implementing the agreements.

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386

Table 1. List of Selected Policies Relevant for Agenda 2030, Paris Agreement
and Sendai Framework (adapted from Bhattacharya, D. 2015)
 7th Five Year Plan 2015  Renewable Energy Policy 2008
 Perspective Plan of  Energy Efficiency and Conservation
Bangladesh 2012 Master Plan 2015
 National Sustainable  National Food Policy Plan of Action
Development Strategy 2012 (2008-2015)
 Climate Change Trust Act  National Social Security Strategy 2015
2010 (Draft)
 Bangladesh Climate Change  National Women’s Development Policy
Strategy and Action Plan 2011
2009
 Bangladesh Climate Change  National Education Policy 2010
Gender Action Plan 2013
 Intended Nationally  National Health Policy 2011
Determined Contributions
2015
 National Adaptation Plan  Health, Population and Nutrition Sector
(forthcoming) Development Program 2011-16

 National Disaster  National Skills Development Policy

Management Plan 2010- 2011
2015
 Disaster Management Act  National Industrial Policy 2015 (draft)
2012

387

388

389 Although the country as indicated above has a regulatory framework, which will play a
390 supporting role, implementation of the SDGs and addressing climate change would still face
391 many challenges due to inefficient governance systems in place (in addition to financing
392 challenges to be discussed in Section 4). Lack of coordination among government agencies,
393 access to information, capacity and resources, participation of the civil society and common
394 citizens, and political influences and vested interests- all these contribute to transparency and
395 accountability issues, and inefficient governance systems.

396 In conjunction with transparent, accountable and efficient governance systems, for successful
397 implementation appropriate institutional mechanisms should also be in place to mainstream
398 climate change and environmental sustainability. In this regard, Bangladesh’s experience with
399 two parallel climate funds BCCTF and BCCRF can be cited. Although the two funds were
400 innovative and forward thinking when they were created, corruption allegations, poor
401 management, conflict among associated entities ultimately led to considerable misallocation
402 of the funds. One of the key lessons the country has learned out of this experience is that

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403 climate financing should be mainstreamed into the national planning and budgeting systems
404 and that in addition to the Ministries of Environment and Forest for Bangladesh other key
405 ministries, such as Planning and Finance need to be involved for appropriate utilization funds
406 (Huq, 2016c, Bjornestad et al., 2016).

407 4. Financing needs and challenges

408
409 Finance remains as one of the key determinants towards successful achievement of SDGs and
410 addressing climate change, especially for countries with limited financial capacity. Despite
411 political uncertainty, global economic slow-down and a growing infrastructure deficit,
412 Bangladesh has made commendable advancements in the socioeconomic sphere in recent
413 years. The country has made admirable success in terms of attaining MDGs, the experience of
414 which will help the country in attaining the SDGs. However, as the actions for attaining SDGs
415 will have to be done largely through domestic resources and finances, addressing the
416 financing gap will be one of the key hurdles for Bangladesh. Bangladesh already has some
417 experience of funding climate actions from its own revenue, which might be useful in
418 planning for financing the implementation of SDGs. The subsequent discussion in this section
419 will highlight the financing needs as well as challenges that the country will have to consider.
420
421 4.1 Estimated Financing Gap for Implementing SDGs
422
423 Achieving the SDGs in all countries will require additional global investments in the range of
424 $5 trillion to $7 trillion per year up to 2030 (Bhattacharya, 2015) . According to UNCTAD,
425 developing countries will require between $3.3 trillion and $4.5 trillion a year for financing
426 basic infrastructure (roads, rail and ports; power stations; water and sanitation), food security
427 (agriculture and rural development), climate change mitigation and adaptation, health and
428 education (UN, 2014a). But considering the current rate of public and private investment
429 there will be an annual financing gap of $2.5 trillion for the aforementioned areas (about 3.2%
430 of world GDP).

431 Bangladesh will require an additional investment of up to $93.9 billion annually to achieve
432 the SDGs. Currently, the annual investment stands at $59.5 billion against the estimated
433 requirement of $109.4 billion to $153.4 billion to attain the 17 SDGs by 2030 (The Daily Star,
434 2016). With regards to climate action, Bangladesh needed $5 billion of investment in climate
435 actions between 2009-2013. However, the country could only manage $1 billion (Parvin et al.
436 2014). It has been estimated that between 2015-2030 Bangladesh will need to invest
437 approximately $42 billion for adaption measures and $27 billion for mitigation measures
438 identified in the INDC (MoEF, 2015).

439 4.2 Key Challenges towards addressing the financing gap

440 Implementation of the SDGs and climate actions will need resources: public and private,
441 national and international, concessional and non-concessional. Thus implementation will need
442 resolving some critical issues related to financing. For example: how domestic revenue can
443 be increased, how the orders of magnitude of financing – public and private – can be
444 mobilized, how the distinction between “development finance” and “climate finance” can be
445 overcome, and addressing the issue of good governance.

446 4.2.1 Limited Domestic Revenue

447
448 Domestic resource mobilisation is perceived to be one of the main challenges for Bangladesh
449 when attaining SDGs. The country needs to double the domestic resources to accomplish the
450 SDGs (The Daily Star, 2015b). Currently, Bangladesh has one of the lowest revenue- to- GDP

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451 rates in the world (The Daily Star, 2015b) and borrowing remains as one the biggest source of
452 financing (18 percent of GDP in 2015) for the Government of Bangladesh (Bjornestad et al.,
453 2016). In 2015, revenue, as a share of GDP, was around 10 percent, and official development
454 assistance (ODA) was about 2 percent (Bjornestad et al., 2016). Outside of the public sector,
455 the most important development finance flows were: private investment $23.3 billion in 2014
456 (Bjornestad et al., 2016). Remittances in Bangladesh averaged $1.21 billion from 2012 until
457 2016 (Trading Economics, 2016). As the country transitions to a middle income country
458 status access to International Development Association grant flows and non-concessional
459 borrowing will be reduced, which will further strain domestic resource mobilization.
460
461 The narrow tax base and monetary losses from exemptions and tax holidays resulted in the
462 current tax-GDP ratio of 12.1 percent in Bangladesh which needs to be increased to 18
463 percent over the next five to ten years if the SDGs are to be achieved (The Daily Star, 2015b).
464 The tax administration is planning to increase tax collection by increasing capacity of the
465 relevant departments and by modernising the tax collection system that can ultimately provide
466 support for spot checks, automatic tax report generation and enforcement of tax compliance in
467 the future. Net loss from illicit financial outflow is another major challenge as the country
468 loses nearly 1.2 percent of GDP through illegal outflow (The Daily Star, 2015b). It has been
469 suggested that the country can meet part of its financing need by curbing the illegal outflow
470 of funds.

471 4.2.2 Stagnant Private Investment

472 While the role of the private sector has been argued to be critical as many of the goals
473 outlined in the SDGs are directly linked to the private sector. Private investment including
474 national and international sources has been stuck at a certain percentage of the gross domestic
475 product in Bangladesh for the last several years for many reasons. The 7th Five year Plan
476 (FYP) of the Government of Bangladesh recognizes that about 77–80 percent of investment
477 needs to come from the private sector as public sector investment alone cannot bring about
478 the increase in gross investment needed (Bjornestad et al., 2016).

479 The 7th FYP has set a target to increase foreign direct investment (FDI) inflows from
480 approximately $1.7 to $9.6 billion in 2020 (Bjornestad et al., 2016). The investment climate
481 for Bangladesh appears to be quite unattractive according to different international
482 measurements. The performance of Bangladesh for attracting FDI inflows has been
483 unsatisfactory. The Global Competitiveness Report, produced by the World Economic Forum
484 ranks Bangladesh 107th among 140 economies. The top five challenging factors for doing
485 business in Bangladesh, as identified by the report, are inadequate supply of infrastructure,
486 corruption, inefficient government bureaucracy, government instability and limited access to
487 financing (World Economic Forum, 2016). These measurements indicate many areas where
488 the country would need to make significant improvements and reforms to attract more
489 investment.

490 In regard to involvement of the private sector in climate resilient development, engaging
491 private sector in adaptation interventions as opposed to mitigation has various challenges. As
492 adaptation typically addresses loss of value due to climate change, characteristically
493 adaptation activities appear to be less appealing for private sector investment. However,
494 private sector can make unique contribution to adaptation in Bangladesh through innovative
495 technologies, design of resilient infrastructure, development and implementation of improved
496 information systems, involvement in adaptation finance planning, and the management of
497 major projects (The Daily Star, 2015a). Therefore, more involvement of the private sector in
498 planning adaptation activities and initiatives is crucial for Bangladesh to effectively address
499 climate change impacts. As such, governments and institutions should facilitate dialogue and
500 create an environment with the private sector in order to induce private financing.

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501 4.2.3 ODA and Climate Finance

502 As climate change and development is intricately connected, it is hard to separate climate
503 adaptation finance from development finance in climate vulnerable countries like Bangladesh
504 (Steele, 2015). While it is necessary to spend on basic SDG provisions such as food security,
505 health, education and water/sanitation, it should be ensured that the spending is climate
506 resilient as well (Steele, 2015). Although developed countries, under the UNFCCC, agreed
507 that climate finance will be “new and additional” to development assistance, in practice,
508 almost every developed country has mixed development finance with climate finance (Huq,
509 2016a). This action causes double counting “a significant amount of their contributions
510 towards both their ODA pledges with their UNFCCC pledges.” Thus a framework is required
511 to ensure that climate finance is new and additional to ODA pledges.

512 As international public climate finance increases, there is a growing concern that investment
513 in climate change mitigation is crowding out poverty reduction (Steele, 2015). There is
514 evidence that as support to climate finance especially to mitigation activities in middle-
515 income countries increase, finance to meet SDGs in LDCs is falling. It was reported that
516 average climate mitigation finance for middle-income countries was nearly 25% of the total
517 ODA to LDCs in 2011 which lead to LDC negotiators arguing that “international public
518 climate finance for mitigation in middle-income countries should be additional to ODA to
519 protect financial support for the SDGs which will limit the risk that ODA money is diverted
520 from funding poverty reduction” (Steele, 2015). With regards to Bangladesh, the flow of
521 external climate change finance to support local initiatives has been slower than expected and
522 it has been suggested that the country might have to focus more on mobilizing climate finance
523 from bilateral donors or domestic sources (Bjornestad et al., 2016).

524 4.2.4 Lack of Good Governance

525 While it is important to know the financing gap and also where the money will flow from, it is
526 also necessary to ensure that available funds be managed and disbursed in a transparent,
527 efficient, accountable and ethical manner to demonstrate commitment and capacity to ensure
528 good governance. In the absence of good governance, integrity, and effectiveness, the level of
529 confidence required for continued flow and availability of funds among national and
530 international sources diminish (Iftekharuzzaman, 2013).

531 Bangladesh in the backdrop of economic growth for the last few years, is about to set a bad
532 precedent with regards to utilizing foreign aid. It has been reported that nearly $20 billion
533 foreign aid remained unused in 2014-2015 as the government failed to utilise the aid in
534 pipeline (Rahman, 2015). The Government has taken steps such as formation on an online
535 portal for tracking aid data (AIMS platform at the Economic Relations Division), formation
536 of a joint committee comprising officials from the government and development partners,
537 electronic tendering for procurement to improve the situation. However, there is a need for
538 substantial improvements to be made (Rahman, 2015).

539 The Green Climate Fund (GCF), which will become the major climate fund and will mobilize
540 $100 billion by 2020, is expected to substantially increase access to climate finance for
541 Bangladesh and other vulnerable. However, GCF money is unlikely to be delivered unless the
542 country sets up a fiduciary system, which is strong, transparent and accountable. Prior
543 experience of Bangladesh with vertical funds (as mentioned in Section 3) indicates that for
544 appropriate utilisation, climate funds need to be integrated within the overall national
545 development strategy with a significant engagement of the Planning Commission and the
546 Ministry of Finance, alongside other line ministries.

12
547 5. Conclusion and Way Forward
548
549 Bangladesh is rapidly moving ahead on the development highway. The country has already
550 achieved a lower-middle income status (UNEP, 2015) and is racing towards the title of a
551 middle-income country. While Bangladesh has performed particularly well on the MDGs,
552 without building on the progress made by MDGs Bangladesh’s growth will not be
553 sustainable. In this context, the Sustainable Development Goals (SDGs) surfaced at a brilliant
554 time. The ambitious targets set by these goals go beyond the scope of the MDGs and
555 addresses key environmental issues that are of great significance in a climate vulnerable
556 country like Bangladesh. However, to successfully implement the SDGs in Bangladesh it is
557 important to understand the role of climate change and the significance of mobilizing the
558 country’s available financial resources.
559
560 In order to successfully implement the SDGs in Bangladesh it is important to understand the
561 role of climate change and the significance of mobilizing the country’s limited financial
562 resources with regard to its impacts. It is important to institutionalize climate change and
563 SDGs in a way that ensures that both agendas mutually benefit one another.
564
565 The Paris Agreement for Climate Change and the SDGs go hand in hand. The Paris
566 Agreement aims to address climate change in the context of both sustainable development
567 and eradicating poverty. A key trade-off in Bangladesh’s future development plans is
568 between energy and climate mitigation actions. It is therefore important to ensure total
569 energy security in the country, while reducing emissions as much as possible. Investing into
570 the country’s NDC (which targets the Power, Transport and Industry sectors primarily), and
571 submitting a more ambitious NDC after 5 years will help achieve low-carbon and climate
572 resilient development. Implementing the NDCs with extensive focus on priority sectors such
573 as energy, land use, transportation, waste, agriculture and water, will also help achieve a
574 broad range of SDGs.

575
576 Considering the complex inter connections of the two agendas, the government ministries
577 and agencies alone will not be able to implement the SDGs and the Paris Agreement.
578 Successful implementation will require the inclusion of many other stakeholders, especially
579 the private sector. The private sector has a major role to play, starting from the investment
580 sector of banks and insurance companies making green investments.

581
582 Developing countries like Bangladesh have limited resources in terms of institutional
583 capacity, knowledge, technical skills and most importantly finance. As such, increasing
584 South-South cooperation will help countries learn from other countries’ experiences and
585 provide a platform for knowledge sharing and capacity building.

586
587
588 Although the separate global agendas highlight independent issues, in reality there are far
589 too many points of intersection that should be taken into consideration when planning
590 national plans and policies. Huq (2016b) uses a metaphor that denotes that although the 20
591 separate goals across the three separate agendas, Transformation 2030, Paris Agreement
592 and Sendai Framework, are operating as parallel strings, if woven together into a rope with
593 various it will be possible to enforce greater change. Conforming the principle that “the
594 collective strength of the rope is many times stronger than the individual strength of each

13
595 strand” (Huq, 2016b), Bangladesh needs to set an agenda that is inclusive, ambitious and
596 environmentally sustainable.

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