Why FY2026–27 could be Bangladesh’s most action-oriented climate budget yet

Graphics: TBS

Bangladesh's FY2026–27 climate and environment budget could become the country's most action-oriented climate budget yet because it connects ambition with visible delivery. It links resilience with water security, afforestation, green jobs, carbon trading, plastic reduction, e-waste management, air quality and cleaner transport. Its success, however, will depend on transparent implementation, public monitoring and real results for people, rivers, forests, cities and coastal communities.

For a country on the frontline of climate change, this is more than another sectoral allocation. The budget sends an important signal on environment, water security, pollution control and climate resilience at a time when salinity, floods, cyclones, river erosion, air pollution, plastic waste and shrinking ecological security are already shaping people's lives.

Under one of the government's "Top 10 Priorities" – "Environment and Water" – Tk10,533 crore has been allocated for Water Resources. Another Tk100 crore has been proposed for the Bangladesh Climate Change Trust to address the impacts of climate change. At first glance, the Tk100 crore allocation may look familiar, as both the FY2024–25 budget of the last Awami League government and the FY2025–26 interim government budget proposed the same amount for climate-related purposes. What makes this year's budget different is not that single allocation, but the wider framework: climate has been linked with water governance, afforestation, green jobs, carbon trading, pollution control, waste management, e-waste, air quality, transport, agriculture and coastal resilience.

This is where FY2026–27 stands out. The FY2024–25 budget recognised climate change and referred to the Climate Change Trust Fund, while the FY2025–26 interim budget kept the climate allocation steady during a period of fiscal restraint. But available climate-budget analysis showed that climate-relevant allocation across 25 ministries declined from Tk42,206.89 crore in FY2024–25 to around Tk41,208.97 crore in FY2025–26. It also fell as a share of GDP.

By contrast, the FY2026–27 budget comes with a larger national spending envelope, a higher Annual Development Programme of Tk3 lakh crore and a stated shift towards increasing development expenditure. This matters because climate action in Bangladesh depends heavily on implementation. Canals must be re-excavated, embankments strengthened, forests restored, waste systems built, rivers protected and transport systems modernised.

Bangladesh is among the world's most climate-vulnerable countries. Rising global temperatures, sea-level rise, salinity intrusion, cyclones and floods are creating serious challenges for people, the economy and future generations. In this context, several initiatives in the budget deserve close attention.

These are commitments linked with rivers, forests, coasts, children, air quality, public health, livelihoods and long-term climate resilience. Compared with the previous two budgets, the FY2026–27 budget appears more action-oriented because it moves beyond broad recognition and includes quantifiable targets across several sectors.

First, the government has announced plans to plant 25 crore trees across the country over the next five years. The initiative is expected to create around 3.5 lakh direct and indirect green jobs. This is significant because climate action is often treated only as an environmental necessity. Here, it is also being linked with employment, livelihoods and rural economic activity.

Second, the FY2026–27 budget sets clear plantation targets. The government plans to plant 4.28 crore seedlings on 25,960 hectares under block plantations and 37.27 lakh seedlings along 3,727 kilometres under strip or roadside plantations. In addition, 1.77 crore seedlings will be planted on 4,000 hectares under mangrove plantations, while 56 lakh seedlings will be planted under homestead forestry. These figures make the plantation agenda more measurable than a broad promise to make the country greener.

Third, the "One Child, One Tree" programme has been finalised to plant 1 crore trees through primary school students. This is one of the most interesting parts of the budget because it connects climate action with education and civic responsibility. If implemented properly, it can help build environmental awareness from the school level.

Fourth, water security has received strong attention. The budget targets 20,000 kilometres of canal re-excavation in five years, with work on 6,598 kilometres already ongoing. The Padma Barrage Project has been approved with a seven-year implementation plan and is expected to benefit 37% of the population. The Teesta Master Plan has also been initiated. For a riverine country facing both floods and dry-season water stress, water infrastructure and river restoration should be treated as core climate adaptation, not merely engineering work.

Fifth, the budget introduces a stronger climate finance dimension. The plan to bring 50% of coastal mangrove forests under carbon trading activities can support climate finance and ecosystem protection. If Bangladesh can develop credible carbon accounting, community benefit-sharing and transparent monitoring, mangrove-based carbon finance could become an important source of resilience funding.

Sixth, pollution control and waste management have received greater attention. Plastic waste reduction has been targeted by 30% within the next five years under the 3R policy: reduce, reuse and recycle. New guidelines and updated rules will be formulated for e-waste management. A "Circular Future Model" will also be implemented for better waste management and resource efficiency. These are important steps because Bangladesh's climate debate often focuses on floods and cyclones, while urban pollution, plastics and e-waste are becoming equally urgent environmental crises.

Seventh, air pollution and transport emissions are now part of the climate-environment conversation. Regular air quality monitoring will continue to control environmental pollution. To reduce vehicle pollution, 10 modern Vehicle Inspection Centres will be established through BRTA. The government also plans to introduce electric bus services, an important step towards cleaner urban transport.

These are not merely budget numbers. They are commitments linked with rivers, forests, coasts, children, air quality, public health, livelihoods and long-term climate resilience. Compared with the previous two budgets, the FY2026–27 budget appears more action-oriented because it moves beyond broad recognition and includes quantifiable targets across several sectors.

But allocation alone will not be enough. The real challenge is implementation with good governance. Bangladesh has seen many ambitious plans fall short because of weak monitoring, slow project execution, poor coordination, inflated costs and limited public disclosure. Every tree planted, every canal re-excavated, every taka spent, every waste management guideline, every vehicle inspection centre and every climate project must be transparent, accountable and open to public tracking.

The government should publish regular progress reports on plantation, canal restoration, mangrove expansion, plastic reduction and air quality improvement. Climate projects should have open dashboards, independent audits, citizen monitoring and clear performance indicators. The Climate Change Trust should disclose project selection criteria, implementation status, spending updates and impact assessments in a user-friendly format. Carbon trading projects must ensure environmental integrity and community benefits, not just paper credits.

Climate action must not remain confined to documents, speeches or budget lines. It must reach people, schools, rivers, forests, farmers, cities and coastal communities. The FY2026–27 budget gives Bangladesh an opportunity to show that climate policy can be practical, measurable and people-centred.

Now the responsibility is to convert ambition into delivery. Let this budget become a real turning point for a greener, cleaner, safer and more resilient Bangladesh.

Hasibul Islam Rafi. Sketch: TBS

Hasibul Islam Rafi is a Climate and Development Practitioner and a former International Consultant for UNDP Asia and the Pacific.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.