Bangladesh Set to Attract Investments in Renewables and Carbon Markets

A distinguished delegation of renewable energy and development experts, headed by former Norwegian Minister for Development and Environment Erik Solheim, met with Bangladesh's Chief Adviser, Professor Muhammad Yunus, at the State Guest House today to discuss potential investments in renewable energy, carbon markets, and agroforestry. The delegation expressed a strong interest in investing in small-scale solar plants, the carbon market, and exploring hydroelectricity opportunities in Nepal, as Bangladesh aims to reduce its dependence on fossil fuels in the coming years.

Prof. Yunus welcomed the delegation's interest, emphasizing that the interim government is actively working to attract foreign direct investment (FDI) in these fast-developing sectors. "These are critical issues for Bangladesh," he stated. "We are eager to secure substantial investments in renewable energy and carbon markets."

Highlighting Bangladesh's ongoing efforts, Prof. Yunus noted that discussions were already underway to import hydroelectric power from Nepal and Bhutan. He also mentioned the government's interest in creating a South Asian electricity grid to facilitate the transfer of power to Bangladesh through a narrow corridor in India. "Hydroelectricity from Nepal is a valuable resource, but the delivery remains a challenge," he said.

Erik Solheim, who also served as a former UN Under-Secretary-General, acknowledged the limited space available in Bangladesh for large-scale solar plants, similar to those established in China and other Asian countries. However, he suggested that the country could be an ideal location for small-scale solar initiatives.

In response, Prof. Yunus confirmed that his government has placed a strong focus on solar energy, and has already extended invitations to Chinese investors to relocate solar panel manufacturing plants to Bangladesh. "Several Chinese solar firms have visited Bangladesh, exploring opportunities to establish factories here, with the goal of exporting products to affluent Western markets," he said.

Kavin Kumar Kandasamy, CEO of ProClime, a carbon trading and climate investment firm, highlighted that Bangladesh could generate tens of millions of dollars from carbon trading, similar to South Asian nations like Sri Lanka. Prof. Yunus expressed his enthusiasm for tapping into the carbon market, as it would provide financial benefits while also supporting environmental conservation, including the protection of the Sundarbans, the world’s largest mangrove forest.

The discussions also covered the Rohingya crisis and recent developments in the Rakhine state of Myanmar, where a rebel group now controls much of the territory. The hour-long talks underscored the urgency of both climate action and regional cooperation in addressing shared challenges.

Through these collaborative efforts, Bangladesh aims to position itself as a leading player in renewable energy and sustainable development in South Asia, while simultaneously boosting its economic and environmental resilience.