Desk Report:
Bangladesh is keen to attract significant foreign direct investment (FDI) in renewable energy and the carbon market sectors, with a focus on small-scale solar plants, agroforestry, and hydroelectricity. The interim government, led by Chief Adviser Professor Muhammad Yunus, has expressed its readiness to explore these rapidly evolving sectors to drive economic growth and environmental sustainability.
On 2 March, Professor Yunus met with former Norwegian Minister for Development and Environment, Erik Solheim, and a delegation of development and renewable energy experts at the State Guest House in Dhaka. The delegation showed a strong interest in investing in small-scale solar plants and carbon markets in Bangladesh. They also discussed potential joint investments in hydroelectricity projects in Nepal, highlighting the importance of shifting away from fossil fuels.
Professor Yunus welcomed these discussions, emphasizing that Bangladesh is eager to tap into these opportunities. “All these are very serious issues for us. Bangladesh wants big investments in renewable energy and the carbon market,” said Yunus.
One of the key topics of conversation was hydroelectricity. Bangladesh has already initiated talks with Nepal and Bhutan to import hydroelectricity and is exploring the possibility of establishing a South Asia grid that could bring power to Bangladesh through a narrow corridor in India. Yunus referred to hydroelectricity in Nepal as “a treasure waiting to be explored,” but acknowledged that the delivery process remains a challenge.
Erik Solheim, who is also a former UN Under-Secretary General, noted that while Bangladesh lacks sufficient unused space for large-scale solar plants, similar to what China and other Asian countries have done, the country could still become an ideal location for small-scale solar installations.
In line with this, Professor Yunus shared that the interim government is placing a special emphasis on solar energy. He also revealed that China’s solar manufacturing companies have shown interest in relocating their production facilities to Bangladesh, where they could serve as a base for exporting products to wealthy Western markets.
Kavin Kumar Kandasamy, the CEO of ProClime, a carbon trading and climate investment firm, suggested that Bangladesh could easily earn tens of millions of dollars through carbon trading, similar to what South Asian nations like Sri Lanka have done.
Additionally, Professor Yunus emphasized Bangladesh’s interest in exploring the carbon market, which could generate substantial revenue while contributing to the preservation of the Sundarbans, the world’s largest mangrove forest.
The meeting also covered the ongoing Rohingya crisis and developments in the western Myanmar state of Rakhine, where a rebel group currently controls much of the territory.
The discussions highlight Bangladesh’s proactive stance in attracting foreign investments in renewable energy, carbon markets, and climate solutions while navigating regional challenges.