Switching to non-carbon and renewable energy and climate financing

COP 28 (28th UN Climate Summit in Dubai) has been engaged in debates on various ways of Green House Gas (GHG) emission reduction in the atmosphere for decelerating the global warming and climate change. Participants (governments, financial institutes, private sector investors) have been discussing several options including carbon taxing, emission trading, reducing high levels of subsidies provided for fossil fuel industries for finding ways to finance non- carbon and renewable energy. Experts believe that there are requirements of trillions of dollars of investment annually in renewable energy to help shift the world to a 'low carbon economy'. The IMF Managing Director Christian Georgieva in the COP 28 forum suggested for putting 'an implicit price on carbon emissions' to generate necessary funds for tackling climate crisis. She believes that the furthering policies for making carbon emission costly will help to accelerate decarbonisation process of economic activities in the world. More radical views advocate for rapid phase out of fossil fuels for achieving global warming level at 1.5-degree celsius threshold at the end of this century. However, there is no denial on accelerating renewable energy sources adaptation, radically scaling up financing for renewable energy development (and use) and phasing out fossil fuel use.
There are manifold challenges for countries like Bangladesh for phasing out of fossil fuel and switching to renewable energy. Bangladesh has become an energy import dependant country. Coal, liquid petroleum and gas (LNG) are imported to keep the country's economy functional. Domestic energy sources (mainly natural gas) share have squeezed significantly in the country's energy balance. However, solar energy (Solar Home Systems, rooftop and land based solar, solar energy based irrigation) are gaining popularity. There are promising indications of developing wind energy based electricity (due to major technological advancements in efficiency improvement for wind turbines) in the coastal and offshore areas in the country. But the cost of electric energy generated from renewable (solar and wind) energy remains high (nearly Taka 12/unit). Moreover, the intermittent nature of solar and wind energy demands for limiting their share in the national grid. For the same reason a large back up fossil fuel based capacity building/maintenance is required for securing grid stability.
Experts are hopeful that Bangladesh can significantly (up to 30 per cent) reduce its energy demands by improving energy efficiency and energy conservation measures. Bangladesh lacks geographical and geotechnical advantages for harnessing large volume of hydro-electricity (green energy), but it may enjoy the hydro electricity generating potentials of its neighbours (through regional grid). In addition, the emerging 'green hydrogen' technology development in the neighbouring countries may enable the local energy industries to switch from LNG to liquid Hydrogen (import and use). Improved and efficient battery technology may offer significant capacity enhancement for renewable energy basket. Thus Bangladesh may join the race for phasing out fossil fuels. Renewables with battery back-up for solar and wind energy offer almost double cost (approximately Taka 22-25 per unit) compared to the present intermittent and limited scale of using grid connected solar power cost per unit. Government subsidy cannot sustainably support the huge gaps between generation and distribution costs of electricity that the stable and wide variety of renewable sources may offer.
Bangladesh has already stepped into nuclear power generating era. Worldwide consensus on acceptance of nuclear energy as a non carbon source has been growing. Although the initial cost for establishing the nuke power and to exploit it safely is huge, operational cost for the same remains low. Therefore, Bangladesh may expand its nuclear energy capacity to get more reliable baseload power.
The available technological options at present and in the foreseeable future offer ways for phasing out of fossil fuel and moving to non-carbon and renewable energy based economy. However, the economic sustainability and social acceptance of the options are linked with climate financing and technological assistances from the global community. The low-income countries like Bangladesh and high-income industrially developed nations should not be put on the same timeframe for the transition to non-carbon (net zero) economy. Moreover, Bangladesh, the hardest hit climate change victim should receive manifold financial supports (for climate change mitigation and adaption) from the global community on a priority basis.
Repeated discussions in the UN climate conferences for ensuring 43 per cent GHG emission reductions (relative to 2019) within 2030, 60 per cent GHG emission reduction within 2035 and net zero achievement within 2050 will not yield meaningful results, unless the global community effectively and rapidly ensures financing and technology sharing to developing countries like Bangladesh.

Mushfiqur Rahman is a mining engineer. He writes on energy and environment issues. [email protected]