Bangladesh has the potential to earn about $1.0 billion a year from global carbon markets, and has already made progress in the carbon credit market, earning $17 million since 2006 through projects such as improved cooking stoves and solar home systems. Yet while countries around the world invest in the carbon sector to protect the environment, investment in Bangladesh remains very low because the country has no clear policy on the carbon credit market. Several steps, including a clear policy, are urgently needed to develop the sector.

This was said at a roundtable titled "Pathways to carbon finance in Bangladesh: private sector potential and policy actions" at a hotel in Gulshan in the capital on Monday (26 May). The international consultancy LightCastle Partners organised it.

The roundtable aimed to raise awareness among private sector leaders and investors about Bangladesh's carbon market readiness and the implementation of Article 6 of the Paris Agreement. Speakers included Ahmed Zubayer Mahmud, additional director of Bangladesh Bank's sustainable finance department; Asim Rahman, policy adviser at the Netherlands embassy; environment expert Shahadat Hossain Shakil; and Sumaiya T Ahmed, head of sustainability at PRAN-RFL Group.

LightCastle Partners Chief Executive Officer (CEO) Bijon Islam moderated. Lincoln Teo, managing director of ZERO13, gave a presentation on agriculture, Bangladesh and the carbon market.

He said Bangladesh is strongly committed to tackling climate change damage. Its main goals are to generate 16 percent of energy from renewables by 2030 and, conditionally, to cut 89.47 metric tonnes of carbon emissions by the same year, which will also play a major role in sustainable agriculture, water management and economic growth. The Dhaka Climate Action Plan, adopted in line with national and international climate commitments, is important for making Dhaka environment-friendly and liveable by cutting excess carbon emissions by 2050.

Ahmed Zubayer Mahmud said: "We have set green finance targets and launched refinancing schemes. The challenge now is to follow good global examples in carbon finance and, with the support of the banking sector, work in a coordinated way with all public and private stakeholders in our country's context."

Bijon Islam said the country needs innovative and sustainable finance aligned with social and environmental impact, and urged a search for new sources of investment through carbon finance. He stressed building an inclusive and resilient economy rather than viewing Bangladesh's economy only in terms of growth.

Several recommendations emerged:

• increase the use of renewable energy to cut carbon emissions;
• bring efficiency to industry through technology;
• use carbon finance opportunities in waste management and afforestation;
• simplify the work of regulators to increase private sector participation;
• identify financial barriers and work to remove them.

The speakers also stressed the right strategies and more investment in the sector, encouraging scheduled banks and large institutions to finance it, policy support to strengthen the country's position in the carbon market, and a clear policy to advance carbon finance.

Source: Jagonews24. First published in Bengali on The Agro News.