Bangladesh Climate Change Fund Munjurul Hannan Khan, Ph.D. Ministry of Environment and Forests

1. ecbi Bangladesh Climate Change Fund Munjurul Hannan Khan, Ph.D. Ministry of Environment and Forests Government of Bangladesh 31 Oct.- 1 Nov. 2011, Tanzania european capacity building initiative initiative européenne de renforcement des capacités for sustained capacity building in support of international climate change negotiations pour un renforcement durable des capacités en appui aux négociations internationales sur les changements climatiques

2. Background: Climate Finance Publication of the IPCC Third Assessment Report, adaptation gained more momentum Parties agreed at COP 7 on establishing three new special funds viz. - Special Climate Change Fund (SCCF) - Least Developed Countries Fund, (LDCF) - Adaptation Fund

3. Background Climate Finance As a response to the COP7, preparation of NAPA in 2005 and Updated in 2009 Lack of Resources under the UNFCCC process Inaccessibility to the fund through existing financial architecture Delayed implementation of NAPA/ Adaptation Actions

4. Bangladesh Climate Change Trust Fund (BCCTF): Country Driven Initiative • Established under the Bangladesh Climate Change Trust Fund Act 2010 • Objective: implementing BCCSAP • Allocation USD 100 million each FY in 2009-2010, 2010-2011, 2011-2012 • Nature of Fund: Block Budgetary Allocation • Management : Formation of Trustee Board • Lead Implementing Organization: Ministry of • Environment of Forests • Operation through Board of Trustee and Technical Committee

5. Board of Trustee for CCTF BoT –17 Members Minister/ State Minister, Ministry of Environment and Forest, Finance, Agriculture, Food & Disaster Mgt, Foreign Affairs, Women and Child Affairs, Water Resources, Shipping, Health and Family Planning, Local Government, Rural Dev. And Cooperatives, Cabinet Secretary, to the government Governor, Bangladesh Bank Secretary, Ministry of Finance Member, (Infrastructure ), Planning Commission Two representatives from civil society nominated by the government Secretary, Ministry of Environment and Forests ( Member Secretary)

6. Organizational Structure: Technical Committee • Twelve member Technical Committee (TC) headed by Secretary, Ministry of Environment and Forest • Sectoral technical experts are included as member of the TC • Evaluate projects/programs and recommend for funding from CCTF

7. Organizational Structure: Sub-Technical Committee Six sub-technical committee formed based on BCCSAP: • Food security, social protection and health • Comprehensive disaster management • Infrastructure • Research and Knowledge management • Mitigation and low carbon development • Capacity building and institutional strengthening Sub-TC is responsible for technical evaluation for appraising submitted projects/ programs and recommend to TC

8. Organizational Structure: Climate Change Unit Climate Change Unit-CCU’ at the Ministry of Environment and Forest Responsible for ensuring efficient implementation of the projects/ programs undertaken by other ministries, departments and NGOs. CCU headed by the Secretary of MoEF Staff members of CCU also serve as member of ‘Sub-Technical Committee’

9. Board of Trustee 17 member (2 from CSO) Technical Committee 12 members Minister-MoEF Chair of the Trust Secretary MoEF / Secretary -Trust/ Chief CCU Sub-Technical Committee and Climate Change Unit at the MOEF Coordination with Other Ministries Monitoring implementation of BCCSAP Research/ Policy Negotiation Perform duties as technical body Management: CCTF

10. Financing Arrangement 66 % of the total CCTF will be used for projects/programs implementation Remaining 34% of total CCTF will be kept as ‘fixed deposit’ to support any emergency situation Also, interest of the 34% fund will be used for projects/programs implementation It’s not mandatory to spend the total allocated amount within the given financial year.

11. Present Utilization of Fund • Food Security, Social Protection and Health: USD 13.89 million • Comprehensive Disaster Management: USD 10.47 million • Infrastructure: USD 31.70 million • Research and Knowledge Management: USD 7.54 million • Mitigation and Low Carbon Development: USD 28. 14 million • Capacity Building and Institutional Strengthening: USD 3.64 million Total : USD 95.38 million

12. Bangladesh Climate Change Resilience Fund (BCCRF): Background Following the massive destruction caused by cyclone SIDR, the UK Government showed its interest to support Bangladesh in climate change adaptation. To shed light on current challenges, in March 08,1st “Bangladesh-UK Climate Conference” held in Dhaka. In this conference, representatives from the IFIs and DPs said explicitly that they would consider creation of a “Multi- Donor Trust Fund (MDTF)” for Bangladesh to support climate change adaptation and mitigation actions. But, the challenge was how to scale up such investment under MDTF

13. BCCRF: Objectives The objective of BCCRF is primarily to support implementation of Bangladesh’s Climate Change Strategy and Action Plan, BCCSAP, a ten-year program (2009- 2018) Also to implement similar activities that would be aimed at building the capacity and resilience of the country to meet the challenge of climate change. BCCSAP aims to build a climate resilience economy and society in Bangladesh through adaptation to the climate change as well as mitigation for a low carbon dev.path.

14. BCCRF: Framework The BCCRF will comprise grant contributions from the DPs. The funds will have two windows; an on-budget window for funding public sector projects; and an off budget window for funding projects of the national/local NGOs and non-profit organizations. The BCCRF approach would embody the five principal principles of ‘Aid Effectiveness’ i.e. country ownership, harmonization, rationalization, predictability and mutual accountability as undertaken through Paris Declaration.

15. BCCRF : Governance The governance of BCCRF will consist of three tiers: a) An independent ‘Board of Trust’ shall be administered under Bengal Trust Act and will be responsible for the strategic direction b) A Technical Committee responsible for project selection, review, assessment, evaluation and monitoring c) A Secretariat responsible for the day to day management of the BCC MDTF and supporting the Board of Trust and the Technical Committee

16. Governance First Tier : Members of the Board 1. Minister/State Minister, Ministry of Environment and Forests (Chair ) 2. Minister, Ministry of Finance 3. Minister, Ministry of Food and Disaster Management 4. Minister, Ministry of Foreign Affairs 5. Minister, Ministry of Agriculture 6. Minister, Women and Children Affairs 7. Principal Secretary to the Prime Minister Office 8. Secretary, Ministry of Environment and Forests ( Member Secretary of Trust) 9. Secretary, Ministry of ERD 10. Secretary, Planning Division 11. Two Representatives from the Development Partners 12. Two Representatives from Civil Society (Nominated by the Government) 13. World Bank (Observer)

17. Governance First Tier :Responsibilities of the Board - Provide advisory guidance on program strategic goals and alignment with BCC SAP, grant criteria and high-level issues, such as, development of ToR on the Technical Back-stopping and responsibility to GOB - Oversee overall management and utilization of BCCRF and establish control on the fund - Develop long term projects and program guide and instruct the expert committee on annual plan and financial plan

18. Governance First Tier :Responsibilities of the Board - Approve recommendation of the technical committee on the implementation of the projects and programs to tackle the impacts of climate change - Guide in the prepare an annual evaluation report through forming an evaluation team - Take necessary measures to mobilize funds from other donors - Review the achievement of results envisaged by the BCCRF - Provide advocacy support

19. Governance 2nd Tier :Technical Committee Members 1. Secretary, Ministry of Environment and Forests, Chair 2. Member (GED), Planning Commission 3. Additional Secretary, ERD 4. Joint Secretary (Development), Ministry of Environment and Forests 5. Deputy Secretary (Environment- 1), Ministry of Environment and Forests 6. Two Representative from the DPs 7. Representative from the World Bank

20. Governance 2nd Tier : Technical Committee Responsibility • Develop, review and endorse the BCCRF • Implementation Manual • Review and endorse the BCCRF’s work program • and budget allocations • Review and endorse initiating grant requests • submitted by a Government ministry or agency and other • eligible institutions • - Endorse Project Appraisal Document on a “No • objection basis” • - Review and endorse the reports prepared by the BCC • MDTF Secretariat for submission to the BoT as well as • for public dissemination • - Review all semi-annual monitoring and evaluation reports • prepared by the secretariat for submission to the BoT

21. Governance Third Tier: BCCRF Secretariat RESPONSIBILITIES Handling the BCCRF day-to-day operations, including coordination with the Technical Committee and BoT, maintaining records of the BoT’s business, including meeting minutes, decisions, and amendment of the Operational Manual, if required. Arranging BoT and Technical Committee meetings; handling the correspondence and minutes of the meetings of the BoT and Technical Committees. Providing guidance and clarification to project applicants and grant recipients on the BCCRF policy processes

22. Governance Third Tier: BCCRF Secretariat RESPONSIBILITIES Coordinate with the appropriate experts/ consultants for project specific activities such analysis, appraisal and supervision Identify needs of technical assistance to be sought from the World Bank and other DPs; coordinate with the World Bank and other DPs in this regard. Managing the Public Disclosure Policy (on the basis of the Right to Information act of the Government of Bangladesh) of the BCCRF, this includes dissemination of information through Web Site and other medium.

23. Board of Trust Role: Strategic Guidance & Alignment with the BCCSAP Technical Committee Role: Review, Selection, Evaluation and Monitoring DPs/ WB Role: Technical Back stopping, Capacity Building, Skill transfer, Secretariat Role: Administrative/ Advocacy/ Communication /Coordination/ Implementation Government Implementing Agencies Non Government Implementing Agencies BCCRF Responsibilities and Coordination

24. BCCRF Secretariat Transparency, Accountability and Governance • Accounts: The Board shall ensure proper book keeping of accounts • - The books of accounts shall be open to the inspection by the members of the Board • - Open Communications, Coordination, and Harmonization –create a website to inform about the BCCRF • - Transparency and Accountability- Use of Funds is clearly aligned with the structures, themes and activities under the BCCSAP • - Client Ownership and Capacity Building– Recognize client needs to enhance development aid effectiveness and achieve lasting results, per the Paris Declaration of Aid Effectiveness • - Establish Realistic Goals for the Short- and Medium term– Deliver outputs to meet expectations and achieve visible development impact Open and Fair • - Competition in Procurement – Procure competitively and select most cost-effective solution

25. BCCRF: Funding Status • United Kingdom - US$94.6 million • Denmark- US$1.8 million • Sweden - US$13.6 million • European Union - US$11.7 million • Switzerland - US$ 3.8 million Total : US$ 125.5 million

26. BCCRF: Funded Project • Building multipurpose cyclone shelters in coastal areas approved by GC - US$ 25 million • ‘Agricultural Adaptation in Climatic Risk Prone Areas of Bangladesh -Drought, Flood and Saline prone areas- US$ 22.8 million allocated • Afforestation and Reforestation for Climate Change Risk Reduction in Hilly and Coastal Areas - US$ 24.95 million allocated

27. World Bank : Managing BCCRF • Interim manager for BCCRF • Service charge is 4.5% • Technical inputs during project preparation • After interim period (five years) responsibility would be transferred to GOB

28. BCCF: Challenge Ahead • How to ensure transparency, accountability and governance • Predictability of fund to BCCTF and BCCRF • Utilization of fund for priority action • Institutional capacity to take responsibility of fiduciary risk management • How to convince Development Partners for direct access of fund

29. Thank you