A new government, a renewed hope for climate and energy leadership

Every new government inherits unfinished business. Some inherit economic reforms; others inherit social challenges. Bangladesh's new government inherits something larger and more complex: a climate reality that is intensifying, and an energy system under growing economic and fiscal pressure.

With this new leadership comes renewed hope. A chance to strengthen climate and energy policy, bring coherence to long-standing challenges, and turn commitments into meaningful progress for the nation and its people.

Bangladesh has long been recognised as one of the most climate-vulnerable countries in the world. However, vulnerability does not define us. The country has invested in adaptation, early-warning systems, and resilience planning. Internationally, Bangladesh has earned credibility as a consistent and principled voice on climate justice.

The next phase of leadership will be defined not by words abroad, but by action at home.

The scale of climate action is substantial. Meeting Bangladesh's updated climate commitments could require over $300 billion by 2030, with adaptation needs alone amounting  $8–9 billion annually. The government already allocates roughly 6–7 per cent of the national budget to climate initiatives, a strong demonstration of domestic ownership. National resources form a solid foundation, but strategic partnerships can amplify their impact.

Equally important is mobilising predictable international support, which often remains fragmented, slow, and structured as concessional loans rather than grants. The new government faces a dual responsibility: to continue securing fair and accessible global climate finance, and to strengthen domestic systems to govern these resources. Transparent budget tagging, stronger coordination across ministries, and credible, bankable projects can significantly enhance Bangladesh's ability to attract and use finance efficiently.

Climate finance must be viewed not as an expense, but as an investment in economic resilience. Well-designed adaptation reduces fiscal risk, resilient infrastructure lowers reconstruction costs, and climate-informed planning protects productivity.

Energy transition is equally pressing.

Renewables currently account for less than 3 per cent of installed electricity capacity, while nearly half of power generation relies on fossil fuels, including natural gas, coal, and LNG imports. This exposes the economy to global price volatility and foreign exchange pressures. Expanding renewable energy and improving efficiency is not only an environmental imperative, but a pathway to economic stability, reducing import dependency, stabilising power costs, and ensuring energy security. Achieving even moderate renewable expansion will require roughly $1 billion in additional annual investment over the next decade. Investors require predictability. Stable procurement frameworks, credible payment systems, well-communicated subsidy reforms, and clear grid integration planning are essential.

The new government has the opportunity to frame climate and energy transition as a long-term, integrated strategy. Climate impacts and energy dependencies are linked: one strains public finances, the other foreign reserves. Addressing both through coherent, well-planned policy strengthens macroeconomic stability.

This moment calls for implementation, institutional strengthening, and policy continuity.

Strategic measures should focus on establishing a central climate coordination unit, enhancing budget transparency and climate finance tracking, ensuring the effective implementation of the Climate Change Trust Fund, and developing a pipeline of bankable climate and energy projects. Policies should embed climate and energy considerations into broader economic planning, expand renewable capacity, improve energy efficiency, and create stable frameworks and incentives to attract private sector investment in renewable energy and low-carbon technologies.

Engaging youth as innovators, researchers, and community leaders is central. Nurturing a new era of young leadership will drive innovation, enhance resilience, sustain climate and energy progress, and strengthen Bangladesh's credibility in international climate finance and energy partnerships.

Bangladesh has repeatedly demonstrated that vulnerability does not preclude leadership. The responsibility before the new government is to translate that leadership into domestic systems that are financially sound, strategically aligned, and resilient for decades.

The climate crisis will not pause for political cycles. with thoughtful planning and steady governance, Bangladesh can turn this period of transition into one of lasting strength. We, the citizens of this country, place our highest optimism in this new era.

Farah Anzum is the Bangladesh Lead at Global Strategic Communications Council (GSCC). She can be reached at farah.anzum@gsccnetwork.org.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.