Specific policies crucial to unlock Bangladesh’s carbon market potential: Experts 

Experts have stressed that clear policies and increased investments are crucial to unlocking Bangladesh's carbon market potential while advancing sustainability and economic resilience.

At a roundtable titled "Catalysing Carbon Financing in Bangladesh: Private Sector Pathways and Policy Readiness", they said Bangladesh holds the potential to earn approximately $1.0 billion annually from the global carbon market. 

Since 2006, Bangladesh has generated approximately $17 million from initiatives such as improved cooking stoves and solar home systems. However, investment in the sector remains minimal due to the absence of a clear national policy, participants noted.

International consultancy firm LightCastle Partners organised the event on 26 May in the capital's Gulshan area, reads a press release.

In a featured presentation titled "Agriculture, Bangladesh and the Carbon Market," Lincoln Teo, managing director of ZERO13, highlighted Bangladesh's ambitious climate goals — including generating 16% of its energy from renewable sources by 2030 and reducing annual carbon emissions by 89.47 million tonnes of CO₂e.

 He also pointed to the Dhaka Climate Action Plan as a critical step toward building a greener, more livable capital city by 2050.

Ahmed Zubaer Mahmud, Additional Director of the Sustainable Finance Department at Bangladesh Bank, emphasised the need for collaboration: "While we've set green financing targets and launched refinancing schemes, we must now strengthen public-private cooperation and follow international best practices, with strong banking sector support."

Echoing this sentiment, Bijon Islam, CEO of LightCastle Partners, called for innovative financing frameworks aligned with environmental and social goals. "Carbon financing can unlock new investment channels. But we must rethink how we mobilise capital to support a low-carbon, inclusive economy," he said.

Several key recommendations include: enhancing the use of renewable energy to reduce carbon emissions; improving industrial efficiency; leveraging carbon financing opportunities in sectors such as waste management and forestry; and addressing financial barriers to implementation.

Experts also emphasised the urgency of adopting a strategic approach to carbon financing.