Bangladesh seeks Australia’s support for green energy transition

Environment, Forest and Climate Change Adviser Syeda Rizwana Hasan has urged the Australian government to provide financial assistance – either in the form of a grant or concessional loan – to support Bangladesh's green energy transition.

She made the call while speaking at a dialogue on Bangladesh-Australia Climate Policy and Green Energy Transition, organised by the Centre for Policy Dialogue (CPD) today at a city hotel.

Highlighting the country's growing carbon emissions, Rizwana said, "Coal-based power plants contribute 28% of total air pollution in the country.

"While Bangladesh emits little carbon globally, national emissions are rising day-by-day. Australia can play a crucial role in financing our climate initiatives and energy transition."

However, she also noted that the transition would not be swift due to existing financial burdens.

Outlining the problems of funding the green energy transition, she emphasised that current power sector agreements have placed a heavy financial burden on Bangladesh, slowing the shift to renewable energy.

"I don't think the process [green transition] will be very fast because of the burden [power deals] we have on our shoulders. We cannot shrug them off. These are agreements, legally binding contracts… we have to carry on with these problematic deals for the next few years," said Rizwana Hasan.  

She added, "We are suffering from climate change, to which we did not contribute. On the other hand, we are taking loans that our next generations will have to repay. It's a double jeopardy for a country like us."

Describing the financial strain of energy expenses, the adviser said, "It is very important for Bangladesh to think whether its energy market should remain import reliant. Prices vary, and markets are volatile."

She noted that the financial burden from the energy sector alone consumes a significant portion of our available resources.

Australian High Commissioner to Bangladesh Susan Ryle, in her introductory speech, outlined her government's efforts in tackling climate change globally.

She said, "We are working with the International Finance Corporation (IFC) in Bangladesh to unlock commercial investments in the power sector and explore pathways to achieve net-zero in the energy sector. We understand the importance of building regional clean energy supply chains." 

The appointment of a dedicated ambassador for climate change demonstrates Australia's resolve to step up international action and work alongside global partners such as Bangladesh to tackle the climate crisis, Susan opined.

During the panel discussion, Fahmida Khatun, executive director of the CPD, raised concerns, stating, "By 2025, we are supposed to reach 10% [power generation] from renewable energy, and by 2041, the target is to occupy 40% of power from green energy but as we speak, contribution of green energy is very low. How do you address those issues?"

In reply, Rizwana Hasan said, "We have to emphasise on the green transition that needs massive and extensive planning and we [interim government] don't have enough time to get into the extensive planning."

"Countries like Bangladesh will be one of the worst sufferers of climate change. We are already confronting some of the challenges. We should also ensure our investments in all sectors are climate resilient," she added.

The event was attended by Kristin Tilley, Australian ambassador for Climate Change; Martin Holtmann, country manager of IFC Bangladesh, Bhutan, and Nepal; and Khondaker Golam Moazzem, research director of CPD, who presented a detailed paper during the dialogue. CPD's Fahmida Khatun moderated the session.