Integrating Climate Finance and Accounting for Sustainable Development: A Qualitative Study in Bangladesh

Abstract

This study investigates the understanding, reporting, and mobilization of climate finance by financial institutions and businesses in Bangladesh, analyzing the interplay between accounting and climate finance. Bangladesh has a significant deficiency in integrating climate-related risks into corporate accounting practices, notwithstanding the gravity of the issue and global commitments to rectify it. This study aims to bridge the existing gap by examining how modern financial disclosures, particularly in the context of climate finance, can facilitate sustainable development. The research employs documentary analysis of corporate reports, financial statements, and policy documents to demonstrate that despite increasing awareness of climate finance, its effective utilization is obstructed by challenges such as data constraints, insufficient technical expertise, and inadequate policy enforcement. The findings underscore the imperative for standardized accounting principles, innovative tools such as carbon accounting and green bonds, and enhanced regulatory frameworks to foster transparency and stimulate investment. This study contributes to both academic literature and practical policy by asserting that the integration of climate finance into accounting practices is essential for Bangladesh's transition to a low-carbon, climate-resilient economy. The study suggests stronger disclosure requirements, capacity training, and the use of new technologies to boost climate financing flows and make sure they are in line with sustainable development goals. To validate these findings and enhance methodologies for integrating climate financing into international accounting standards, subsequent research should investigate cross-national comparisons.