Tk21,750cr needed annually to meet 2030 renewable energy target, urge civil society organisations

Bangladesh requires an annual investment of at least Tk21,750 crore to achieve its renewable energy targets by 2030, leading civil society organisations said while warning that current budgetary allocations and a restrictive tax order could derail the country's green transition.

Speaking at a press conference today (21 June), representatives from major environmental and rights groups stated that whilst the government's decision to remove import duties, value added tax, and advance income tax on clean energy equipment for fiscal 2026-27 is welcome, the current sector blueprint remains deeply flawed. 

The groups highlighted that the state has earmarked only Tk379.24 crore for renewable energy – a mere 2.2% of the total Tk17,193 crore power sector allocation – leaving a massive public-private funding deficit that threatens the national target of installing 10,000 megawatts of solar power by 2030.

Hasan Mehedi, chief executive of the Coastal Livelihood and Environmental Action Network, noted that a National Board of Revenue statutory regulatory order issued on 8 June 2026 further jeopardises the transition. 

The order restricts tax benefits primarily to value-added tax-registered renewable energy service companies operating under power purchase agreements, effectively excluding millions of residential consumers, small entrepreneurs, farmers, and community-based solar irrigation operators from the incentives, he said.

The speakers also pointed to stark structural contradictions within the fiscal blueprint, revealing that while the finance minister identified imported liquefied natural gas as a growing economic burden, existing tax exemptions on fossil fuel imports remain untouched. 

Research presented at the event estimated that a minimum public investment of Tk6,750 crore a year is required out of the total annual Tk21,750 crore matrix to bridge the green energy divide. 

Former adviser to the interim government Syeda Rizwana Hasan, representing the Bangladesh Environmental Lawyers Association, emphasised that rooftop solar alone cannot resolve regional energy inequality and load shedding beyond the capital without broader, decentralised state backing.

To resolve the funding crisis, the coalition urged the government to establish a Tk25,000 crore Renewable Energy Fund through the central bank to supply low-cost financing via commercial channels to households, entrepreneurs, and farmers.

To align state investment with climate commitments, the organisations put forward a seven-point proposal demanding the immediate revocation of the 8 June NBR order and a 10-year extension of clean energy tax holidays for all user tiers.

Additional recommendations included introducing direct subsidies of at least Tk25,000 per kilowatt for residential rooftop solar systems – with specific incentives for women and Indigenous communities – and making it mandatory for new utility-scale solar projects to integrate at least 20% battery energy storage capacity. 

The groups noted that Bangladesh's energy crisis is driven less by resource scarcity than by skewed policy priorities, urging a decisive shift towards a self-reliant economy.