Clean Energy, Sustainable Future: Bangladesh Low-Carbon Pathway

Mohammad Maruf Hasan :

Bangladesh, the second-largest economy in South Asia and the tenth in the Asia-Pacific region, has swiftly evolved from reliance on aid to become one of the fastest-growing economies.

Despite significant economic expansion and a decrease in poverty, it confronts the combined task of maintaining industrialisation while mitigating energy-related carbon emissions.

Given its status as one of the globe’s most climate-vulnerable nations, Bangladesh’s strategy for incorporating CO? emission reduction, technology advancement, and sustainable development will be pivotal in determining its long-term economic and environmentally sustainable development.

Bangladesh economy has developed South Asia’s most vibrant economies. The average annual GDP growth was over 6.5%, propelled by advancements in manufacturing, energy, and infrastructure. However, this swift advancement has incurred a price.

Since 2000, the nation’s CO? emissions from fuel combustion have more than tripled, indicating an energy system predominantly dependent on fossil fuels,especially natural gas, oil, and coal.

The electricity industry is the predominant source of emissions, responsible for around 80% of overall energy-related CO? emissions (major sector, gas 51% and coal 27%) in 2025.

Industrial and transportation emissions have increased significantly due to rapid urbanization and the proliferation of vehicles.

The International Energy Agency (IEA) reports that Bangladesh’s annual CO? emissions reached approximately 103Mts in 2023, relatively moderate compared to industrialised nations, however, increasing rapidly.

Policymakers currently confront an urgent challenge: How to maintain industrial expansion and satisfy increasing energy requirements without committing the nation to a high-carbon future.

Bangladesh has made substantial progress in aligning its energy plan with international climate objectives.

The Nationally Determined Contribution (NDC) pursuant to the Paris Agreement pledges to decrease greenhouse gas (GHG) emissions by 6.73% unconditionally and 13.92% conditionally by 2035 relative to a business-as-usual scenario.

Bangladesh’s Climate Prosperity Plan (2022-2041) aims to transition the nation from “climate vulnerability to climate resilience and prosperity,” prioritising green technologies, renewable energy, and sustainable financing.

For energy related emission reduction renewable energy is the best solution.

The renewable energy sector, although still in its infancy, is growing. In Bangladesh Solar energy spearheads the change, with more than 7 million solar residential systems installed to provide electricity to rural areas which is ranking among the greatest off-grid renewable energy initiatives globally.

According to CPD the government intends to generate 40% of electricity from renewable sources by 2041, facilitated by solar parks, rooftop solar installations, and wind energy initiatives in coastal areas. Efforts to decommission inefficient power facilities and advocate for liquefied natural gas (LNG) as a transitional fuel are in progress.

However, Bangladesh’s transition to green energy is progressing steadily, but fossil fuels still supply over 70% of its energy due to limited investment, technology gaps, and financial constraints.

Achieving sustainable growth will require stronger alignment between technological innovation and policy reform.

In recent years, technological innovation has emerged as Bangladesh’s most potent tool for reducing emissions. The government, universities, private sector and international cooperations are progressively prioritising energy efficiency, clean technology, and digitalisation as avenues to achieve a low-carbon economy, which is a means of low-carbon growth.
Such as, energy efficiency and industrial enhancement are the major sectors for technological innovation.

Country Government now focus on this, for example, Bangladesh’s ready-made garment (RMG) sector, which serves as its economic foundation, is seeing a green makeover. The nation currently hosts over 200 LEED-certified green factories, which are the largest quantity globally.

As a result, country’s green factories employ energy-efficient technology, water reclamation, and renewable energy sources to reduce emissions by as much as 40%.Comparable sustainable technologies are currently being advocated in the steel, cement, and fertiliser sectors.

Renewable energy technology is the main part of sustainable development for a country? in Bangladesh domestic entrepreneurs and foreign investors are investing in solar photovoltaic (PV) manufacturing, microgrid systems, and energy storage technologies.

Off-grid solar solutions significantly enhance rural electrification, diminishing reliance on diesel and elevating living standards.

Simultaneously, experimental initiatives in wind and biogas energy exhibit increasing promise for diversification.

Innovations in smart grids, data analytics, and the Internet of Things are enhancing energy management and forecasting in Bangladesh.

Bangladesh Power Development Board (BPDB) and the Sustainable and Renewable Energy Development Authority (SREDA)’s smart metering efforts seek to reduce transmission losses and improve energy efficiency.

In response to escalating urban air pollution, the government is investigating the deployment of electric vehicles (EVs).

Despite being constrained, domestic entrepreneurs and international companies are pursuing prospects in electric vehicle manufacturing and battery recycling.

This might substantially reduce emissions in the transport sector if integrated with renewable energy-powered charging infrastructure.

Bangladesh did not have this technology; the country needs to depend on foreign partnerships. Technological transformation necessitates funding, and Bangladesh is securing both domestic and international resources.

The Green Transformation Fund and the Bangladesh Climate Change Trust Fund (BCCTF) are funding environmentally sustainable projects, and the ADB, World Bank, and JICA are endorsing renewable energy and energy efficiency initiatives. China’s participation in the Belt and Road Initiative (BRI) has generated both prospects and apprehensions.

Chinese investment in power and infrastructure has expedited development, however it has also encompassed numerous coal-based projects. Beijing’s recent transition to “green BRI” projects may steer future funding towards renewable and low-carbon technology in Bangladesh.

China contributes to Bangladesh’s renewable energy sector via direct investment, project financing, and equipment provision, encompassing significant initiatives such as a 500 MW solar and wind power plant and a joint venture for solar panel manufacturing with an investment of $400 million.

These investments are a component of China’s extensive involvement in Bangladesh’s infrastructure, designed to advance its renewable energy objectives while promoting economic collaboration.

Chinese enterprises, including CMC and China Energy Engineering Group, have invested in Bangladesh’s renewable energy sector, executing significant projects such as the 50 MW Mymensingh solar facility and the 66 MW Cox’s Bazar wind farm.

These measures bolster Bangladesh’s objective of producing 40% of its electricity from renewable sources by 2041, while enhancing bilateral relations through financing, technology transfer, and a mutual commitment to clean energy advancement.

The European Union (EU) and Nordic nations are providing technical assistance for energy transition and green innovation, thereby aiding Bangladesh in enhancing its institutional capacity for climate governance.

Embracing green innovation boosts Bangladesh’s export competitiveness, meeting global sustainability demands and enhancing its reputation in the EU and US markets.
Bangladesh’s energy and climate policies have evolved beyond mere electricity concerns; they now encompass economic identity.

The nation’s capacity for sustainable growth, emission reduction, and adoption of innovation will dictate its success in realising the 2041 vision of becoming a high-income, climate-resilient country.

As the global community accelerates towards carbon neutrality, Bangladesh finds itself at a critical crossroads.

The decisions made today between reliance on fossil fuels and the pursuit of green innovation will influence not only its environmental trajectory but also its position in the global economy.

By investing in technology, governance, and human capital, Bangladesh can demonstrate that economic advancement and environmental stewardship are not mutually exclusive but rather interdependent components of a sustainable future.