Bangladesh has huge potential to earn carbon credits: State Minister Waseqa
The two programmes that earned us the most credits were the solar home system and the improved cooking stove. However, these programmes are no longer in operation. We had more than 6 million solar home systems, she said
Bangladesh has enormous potential to earn carbon credits, said State Minister for Finance Waseqa Ayesha Khan during a discussion on Thursday (16 May).
"The two programmes that earned us the most credits were the solar home system and the improved cooking stove. However, these programmes are no longer in operation. We had more than 6 million solar home systems," she said at the event.
The Bangladesh Institute of International and Strategic Studies organised the seminar, "Application of Carbon Financing Challenges and Policy Options for Bangladesh", at the BIISS auditorium in the capital.
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Waseqa said, "If I ask the environment ministry, I don't think they will be able to tell me how many of those 6 million solar home systems are in operation now. There is a data gap. So, what cannot be measured is never done. That's the business we'll have to look at.
"Carbon financing, carbon credits – all that comes after we are used to using renewable energy. So, I think we are missing a step here."
The state minister said the authorities are aware that the power ministry has implemented a net measuring system. However, many stakeholders are concerned about the issue still remaining in the Bangladesh Export Processing Zones Authority because it has a different law governing energy usage. So, net measuring is not applicable there.
She said Bangladesh has so far implemented nearly 800 projects at a cost of $480 million from its own resources. Even today, 300 new projects were approved at the Executive Committee of the National Economic Council meeting on the annual development programmes. This is an inadequate amount, but the country requires $7-8 billion every year to implement the national adaptation plan.
Waseqa said, "We are looking to have 40% of our energy from clean sources by 2041. That is still a long way to go. In 2021, more than 10 coal plants were cancelled. But now, there are supercritical coal plants which are known to be quieter."
Major General Abu Bakar Siddique Khan, director general of BIISS, said, "Balancing economic growth with environmental preservation requires creative approaches and strategic investments.
"Additionally, the lack of institutional frameworks and capacity poses significant hurdles in carbon financing management. Standard regulations, technical expertise, and fostering partnerships are essential steps toward overcoming these challenges."
Mahfuz Kabir, research director at BIISS, presented the keynote paper, titled "Pathways of Carbon Financing Imperatives for Bangladesh." The keynote presentation was followed by a panel discussion.
The panel consisted of Eun Joo Allison Yi, senior environment specialist at the World Bank; Arif M Faisal, program specialist at UNDP, Bangladesh; Alamgir Morshed, executive director and CEO at Infrastructure Development Company Limited; Shams Mahmud, managing director at Shasha Denims Ltd and director, BGMEA; and Nazrul Islam, additional foreign secretary.
The speakers focused on the need to establish comprehensive policy guidelines, raise awareness, and encourage effective participation of all relevant stakeholders.
They noted that the country is among the lowest carbon emitters but remains highly vulnerable to climate change impacts. Carbon financing can be a useful instrument in this regard.
