Bangladesh can attract big investments in renewable energy, carbon market, experts tell CA

A delegation of development and renewable energy experts, led by former Norwegian minister for development and environment, Erik Solheim, called on Bangladesh Chief Adviser Professor Muhammad Yunus at the State Guest House today (2 March).

The team expressed their keen interest to invest in small-scale solar plants and carbon markets, agroforestry in the country, and jointly explore hydroelectricity investment opportunities in Nepal as Bangladesh focuses more on easing off fossil fuels in the coming years.

Prof Yunus welcomed the move, saying the interim government was now ready to attract foreign direct investment (FDI) in these rapidly evolving sectors.

"All these are very serious issues for us. Bangladesh wants big investments in renewable energy and the carbon market," the chief adviser said.

Prof Yunus said Dhaka had already initiated talks to import hydroelectricity from Nepal and Bhutan, and his government was more than eager to explore opportunities to set up a South Asia grid to bring the power to Bangladesh via a narrow corridor in India.

"This [hydroelectricity in Nepal] is a treasure waiting to be explored. But delivery is a problem," the chief adviser said.

Erik Solheim, also a former UN under-secretary general, said Bangladesh lacks enough unused space to build a large-scale solar plant as China and some other Asian countries did.

But, he said, the country could be a perfect place to set up small-scale solar plants.

Prof Yunus said his government has put a special emphasis on solar plants, and he has already invited Chinese investors to relocate solar panel manufacturing plants to Bangladesh.

Officials from several Chinese solar manufacturing firms have visited Bangladesh since then to explore opportunities to set up factories here with a view to using them to export much of their products to rich Western nations.

Kavin Kumar Kandasamy, Chief Executive Officer of ProClime, a carbon trade and climate investment firm, said Bangladesh can easily earn tens of millions of dollars by carbon trading as the South Asian nations like Sri Lanka have done.

Prof Yunus said Bangladesh was keenly interested in exploring the carbon market, as it would help the country earn millions while at the same time support the efforts to protect the Sundarbans, the world's largest mangrove forests.

During the hour-long talks, the chief adviser and the Solheim-led delegation also discussed the Rohingya crisis and recent developments in the western Myanmar state of Rakhine, where a rebel group now controls most of the territories.