A recent study published in the International Journal of Sustainable Energy and Environmental Research highlights Bangladesh’s efforts to combat climate change through green finance and renewable energy production. The study, conducted by researchers from multiple Bangladeshi universities, argues that green finance and green energy can play a transformative role in reducing Bangladesh’s vulnerability to climate-related impacts, given its geographic and socioeconomic challenges.

The research notes that Bangladesh, an emerging economy facing significant climate threats like flooding and rising sea levels, urgently needs innovative solutions. The authors outline green finance as an essential tool to bridge the investment gap in climate-resilient projects, particularly renewable energy.

Green finance initiatives in Bangladesh encompass financial instruments such as green bonds and loans, primarily funded by private banks, which have enabled projects in renewable energy, waste management, and eco-friendly manufacturing. According to the study, private commercial banks contribute significantly to Bangladesh's green financing sector, directing nearly 75 per cent of funds from non-banking financial institutions to environmentally conscious projects.

Bangladesh has also made strides in green energy production through solar, wind, and hydropower technologies, which are essential in reducing greenhouse gas emissions. The Bangladeshi government’s Sustainable and Renewable Energy Development Authority (SREDA) has set ambitious targets, aiming to add 41 gigawatts (GW) of solar power to the national grid by 2041. 

Moreover, the country has collaborated with international entities like the European Investment Bank, securing €400m to transition away from traditional energy sources. The Mujib Climate Prosperity Plan (MCCP) outlines Bangladesh’s goals to achieve 30 per cent renewable energy by 2030 and 40 per cent by 2041.

The study provides comprehensive policy recommendations for enhancing green finance and green energy production in Bangladesh. It advises the government to implement policies that encourage investment in renewable technologies and suggests greater involvement from Bangladesh Bank to develop green finance products. By bolstering research and development in clean energy technology, the study argues, Bangladesh can advance its green sector and ensure long-term climate resilience.