Bangladesh's dependence on fossil fuels hinders its ability to meet international commitments under the Paris Agreement and sustainable development goals (SDGs) related to climate change mitigation and clean energy transition.
Speakers made the observations at a national policy dialogue hosted on Saturday with an eye to promoting renewable energy and ensure sustainable development.
Dependence on imported fuels and global price volatility translate to higher electricity bills for consumers and businesses that, according to them, can stifle economic growth and increase household expenses.
The Bangladesh Enterprise Institute (BEI) organised the event at a city hotel where chairman of the parliamentary standing committee on foreign ministry Dr AK Abdul Momen was present as the chief guest.
BEI president Ambassador M Humayun Kabir chaired the dialogue where BEI researchers Samiul Haque and Faysal Ahmed delivered two keynotes.
Top government officials and university professors took part in the event.
According to the discussants, large investments required for fossil fuel infrastructure development create substantial debt obligations for the government, which diverts resources from other crucial sectors like education and health care.
The need for continuous fossil fuel imports can put pressure on taka, leading to currency depreciation, which further increases the cost of imported fuels, creating a vicious cycle, they say.
Despite having potential, the growth of renewable energy in Bangladesh is not significant, the speakers added.
Bangladesh has significant solar energy potential, with 4.5 hours of daylight on average per day.
The government, however, is working towards achieving the goal of 40-per cent renewable energy usage by 2041.
The Sustainable Finance Policy (2020) of the Bangladesh Bank mandates banks and financial institutions allocate 20 per cent loans to sustainable projects, including 5.0 per cent specifically for green initiatives.
Low levels of awareness and acceptance of green energy initiatives among local communities can, however, impede project implementation, according to them.
The speakers say local communities lack technical expertise or project and financial management skills to effectively utilise funds for renewable energy schemes.
Chairman of the parliamentary standing committee on power, energy and resources ministry Md Ziaur Rahman, Power Cell director general Mohammad Hossain, EU Green Inclusive Development programme manager Hubert Blom, The Asia Foundation country director Kazi Faisal Bin Seraj and BUET Institute of Energy and Sustainable Development director Dr Farseem Mannan Mohammedy also spoke.
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