Achieving a Just Energy Transition in Bangladesh: Balancing Sustainability, Social Equity, and Climate Resilience

Md. Ashrafuzzaman Khan
Coordinator – CCDB Climate Centre

Bangladesh is at a critical point in tackling the urgent issue of climate change. Bangladesh contributes only 0.56% of global greenhouse gas emissions but is the seventh most vulnerable country to climate change, facing significant impacts from the climate crisis.

The country has made progress in energy infrastructure, but shifting from fossil fuels to renewable energy is still a pressing challenge. This journey requires not just environmental reform but also social considerations.

‘Just Energy Transition (JET)’ aims to protect the environment while safeguarding human rights, particularly for marginalized communities. JET is essential to support vulnerable communities, disadvantaged groups, industries, and workers during the transition to clean energy.

Current Scenario of Bangladesh’s Energy Landscape

 Bangladesh’s energy sector is undergoing significant transformation, but it still faces significant challenges in meeting its sustainability goals. The Sustainable and Renewable Energy Development Authority (SREDA) reports that Bangladesh’s total installed electricity capacity is 31,255 MW. Of this, 4.98% is sourced from renewable energy. Renewable energy has seen considerable expansion with more than 1176 MW added to the national grid and 380 MW off-grid.

Renewable energy still accounts for only a small fraction of the country’s total power generation. The government has set ambitious targets for the future, including achieving 40% renewable energy penetration by 2041. The focus is shifting to increasing solar power capacity for both grid-connected and off-grid systems, along with other renewables like wind, hydro, biogas, and biomass. There is still a considerable gap between the current transition stage and the country’s reliance on fossil fuels, which still dominate its energy landscape.

Bangladesh has significantly advanced in adopting solar home systems (SHS) to improve electricity access, especially in off-grid rural areas. About 6 million SHSs have been installed in remote areas where electrification through grid expansion is challenging and costly. Solar power is a key solution for clean, affordable, and sustainable energy, helping to reduce habitat destruction and supporting the conservation of various species. It will safeguard abiotic components, including soil, water, and air quality, ensuring they remain healthy and sustainable for future generations. Shifting to clean energy can enhance agriculture by boosting crop yields, promoting sustainable farming, and safeguarding livestock from extreme climate effects. Reducing our dependence on fossil fuels helps protect both living and non-living components, making ecosystems more resilient. By prioritizing environmental sustainability and social equity, Bangladesh can build a cleaner, more resilient future for all.

The benefits include providing energy access to remote communities, reducing reliance on fossil fuels, lowering carbon emissions, and empowering local economies by enhancing education, businesses, and quality of life. Over 56,500 biogas plants and 26 solar mini-grids with a total capacity of 5 MW have been built across the country. Furthermore, 1,515 solar irrigation pumps are now operational, with an installed capacity of around 40 MWp.

Bangladesh is a signatory to the Paris Agreement, which seeks to keep global warming below 2°C within this century, ideally aiming for 1.5°C. Bangladesh has committed to reducing carbon emissions by 21.8% by 2030, focusing on increasing renewable energy and improving energy efficiency. The country’s Nationally Determined Contributions (NDCs) reflect its recognition of the urgent need for clean energy and climate resilience. The Greenhouse gas (GHG) emissions from the energy sector will be 76% of total emissions in Bangladesh by 2030.

The World Resources Institute reports that the energy sector is the biggest contributor to global greenhouse gas emissions, accounting for about 76% of CO2 emissions. Countries worldwide are under growing pressure to decarbonize their energy systems to reach net-zero emissions by 2050. Achieving Net-zero emissions requires teamwork, and with renewable energy leading the way, we can create a greener, sustainable future.

The Need for a Just Energy Transition

 As Bangladesh moves towards a more sustainable energy future, a just energy transition (JET) is becoming increasingly crucial.

The country is heavily reliant on fossil fuels, particularly natural gas, for its energy needs. A Just Energy Transition extends beyond replacing fossil fuels with renewable energy.

It focuses on ensuring that the social, economic, and environmental effects of this shift are fairly shared, particularly benefiting vulnerable groups like fossil fuel workers, women, and rural communities. The needs are as follows:

• Climate Change Mitigation: Bangladesh faces severe climate risks, such as floods, cyclones, and sea-level rise, due to its geographic location. Bangladesh is highly vulnerable to climate change, with slow-onset and extreme weather events disrupting the lives and livelihoods of millions. These climate change impacts are caused by anthropogenic greenhouse gas emissions, and the energy sector is the prime contributor. So, a just energy transition is critical for reducing carbon emissions and building resilience against these impacts. Switching to renewable energy is essential for lowering emissions and protecting vulnerable communities from climate change. Mitigation is the best form of adaptation.

Environmental Protection:

In Bangladesh, a just energy transition is crucial for protecting the environment. Shifting from fossil fuels to renewable energy sources will reduce carbon emissions, improve air quality, and help mitigate climate-related disasters.

This transition will help protect biodiversity by reducing habitat destruction and supporting the conservation of plants, animals, and microorganisms. It will safeguard abiotic components, including soil, water, and air quality, ensuring they remain healthy and sustainable for future generations.

Transitioning to clean energy can enhance agriculture by boosting crop yields, promoting sustainable practices, and safeguarding livestock from extreme climate effects.

Reducing reliance on fossil fuels helps preserve ecosystems and their components. By prioritizing environmental sustainability and social equity, Bangladesh can build a cleaner, more resilient future for all.

• Energy Security and Sovereignty: The ongoing Russia-Ukraine war has exposed the vulnerabilities of countries reliant on fossil fuel imports. Bangladesh, similarly, faces energy security concerns due to its dependency on natural gas and imported fuels. A Just Energy Transition would improve the country’s energy independence by lessening dependence on foreign sources and investing in domestic renewable resources like solar and wind for a stable energy future.
• Potential of Solar Power: Bangladesh has immense potential for solar energy, thanks to its abundant sunlight. With an average of 200–250 watts per square meter, solar power can help meet our energy needs sustainably. Solar energy is a clean and affordable alternative to fossil fuels, providing electricity to rural areas. Currently, over 6 million solar home systems are in use. Additionally, floating and rooftop solar plants can efficiently utilize land, preserving cropland. By expanding solar power, Bangladesh can build a more sustainable and affordable energy future.
• Green Job Creation: The renewable energy sector in Bangladesh offers significant opportunities for job creation. Expanding renewable energy projects will create sustainable jobs and provide training opportunities, especially for marginalized groups like women and youth.

Social Equity and Gender Inclusion

A Just Energy Transition ensures that the benefits of cleaner energy are shared equitably across society.  In Bangladesh, women are underrepresented in the energy workforce, so their inclusion in renewable energy is vital for gender equality and social equity.

Policies that promote women’s participation can empower marginalized groups and help include everyone in the transition to a greener economy. It’s important to involve everyone in decision-making and ensure the transition creates more green jobs instead of eliminating current ones.

A just transition must prioritize the needs and rights of marginalized communities and fossil fuel workers by providing fair wages, retraining, and alternative job opportunities.

Additionally, infrastructure development must respect local communities’ legal, land, and cultural rights. Ultimately, a just energy transition balances environmental protection with human rights, creating a sustainable and equitable future for all.

• Economic Opportunities and Sustainable Growth: Moving toward a low-carbon economy can unlock significant economic opportunities. By investing in renewable energy, Bangladesh can reduce energy costs, attract green investments, and drive innovation. Aligning with global climate goals and embracing sustainable practices will position Bangladesh as a leader in clean energy, attracting international funding and technology.
• Leveraging Carbon Markets: Bangladesh has significant potential to leverage carbon markets to support its climate goals. The country can generate and sell carbon credits in international markets by using low-carbon technologies and practices in energy, agriculture, forestry, land use, and waste management. This provides a financial incentive for businesses to reduce emissions and attracts green investments. Engaging in carbon trading can help Bangladesh achieve sustainable development, support global climate efforts, and create new revenue for the economy.

Challenges in Achieving a Just Energy Transition

While Bangladesh is on the path, several key challenges remain that threaten the success of its energy transition:

Financial constraints hinder the development of renewable energy projects in Bangladesh, especially large-scale solar and wind plants that need significant upfront investment. Additionally, high investment costs, long payback periods, and limited financial access further deter potential investors.

• Financial Constraints: The absence of targeted financial solutions and incentives slows the growth of the renewable energy sector and hampers the achievement of the country’s energy goals.
• Infrastructure Development: Bangladesh’s energy infrastructure, especially in rural areas, remains underdeveloped. Investing in grid infrastructure, storage, and energy distribution is essential for expanding renewable energy systems to off-grid communities.
• Policy Gaps: There are important discrepancies in renewable energy targets across various policies, including the Renewable Energy Policy, Mujib Climate Prosperity Plan (MCPP), and Integrated Energy and Power Master Plan (IEPMP). These inconsistencies reflect gaps in the implementation strategies, including the absence of detailed financial estimates, inadequate subsidies for clean energy.
• Social and Employment Impact: The fossil fuel sector provides many jobs, especially in the coal and gas industries. Moving away from these energy sources may cause job losses and economic challenges for workers lacking skills for the green economy. This is a critical concern for vulnerable communities that rely on energy-related jobs.
• Capacity and Skill Gaps The renewable energy sector needs a skilled workforce for the installation, maintenance, and management of green technologies. Bangladesh currently lacks the necessary capacity to provide widespread education and training for workers in this field. There is a pressing need to address these skill gaps through educational reforms and vocational training programs.
• Social Resistance to Change: Social resistance to energy transitions often stems from fears of economic disruption, job losses, and changes to familiar lifestyles. In rural areas, communities may distrust new renewable technologies and feel excluded from decision-making, resulting in low participation.
• Land Use and Resource Management: Large renewable energy projects, like solar and wind farms, need a lot of land, which can conflict with agricultural and ecological areas. Bangladesh struggles to balance land use for energy projects with food security and biodiversity protection. However, the country has significant potential due to its rivers and rooftops.
• International Collaboration and Global Market Integration: Bangladesh requires international assistance in technology, funding, and expertise to meet global climate goals and enhance market integration. Challenges in international markets, like energy trade and complex climate financing, can hinder progress.

Solutions for a Sustainable and Just Energy Transition

Despite these challenges, there are solutions and strategies that can ensure a just energy transition in Bangladesh:

• Financial Support and Investment: The government should mobilize both public and private funds through green financing and international partnerships. Mechanisms such as green bonds, carbon trading, and climate finance can bridge the gap in funding clean energy projects. Immediate implementation of tax incentives for green energy sources and related components is crucial. Innovative financing solutions like blended finance and climate funds should be utilized to scale up the renewable energy sector. Expanding public-private partnerships (PPPs) will speed up the use of renewable energy technologies in rural and off-grid areas, making them more affordable and accessible.
• Policy and Regulatory Reform: Develop a “National Just Energy Transition Policy” to address inconsistencies in current power and energy policies. This policy should be created in collaboration with all stakeholders. The policy will serve as a guide for the development of the energy sector and the implementation of related plans. Legal mandates should be established to enforce targets, and financial support for the clean energy sector should be increased to address financial barriers. The policies must align with global climate goals and prioritize renewable energy development.
• Worker Retraining and Reskilling:Investments from both the government and private sector in retraining programs are crucial for transitioning to green jobs. These programs aim to help workers transition from fossil fuel industries to fields like solar energy, green construction, and energy efficiency services. It is important to ensure fair access to opportunities, especially for women, youth, workers, and marginalized communities.
• Gender-Sensitive Policies: A gender-inclusive approach should be central to the just energy transition. This could involve creating job opportunities for women in renewable energy, energy efficiency, and environmental management sectors. Programs that provide solar-powered agricultural tools and promote gender-responsive energy policies will greatly enhance social equity and empower rural women.
• Technological Innovation and Local Solutions: Encouragement of research and initiatives focused on renewable energy technologies should be prioritized. Create hands-on learning opportunities in higher education to engage young people in developing green energy and building a skilled workforce. Additionally, technical education curricula supporting green and renewable energy should be introduced into the national education system.
• Energy Access: Upgrade power transmission lines and infrastructure, and make net metering systems widely available to all consumers, including individuals and cooperatives. Expanding off-grid solar systems and other renewable technologies to remote areas is critical for providing energy access to underserved populations. This expansion will enhance the livelihoods of rural and marginalized communities, especially women who often gather firewood and other energy sources.
• International Collaboration and Funding: Bangladesh should avoid international agreements in the energy sector that compromise state sovereignty or public interests for the benefit of corporations. Technology exchange agreements with regional and international partners should be signed, ensuring equitable access to renewable energy technologies. Bangladesh can seek international partnerships like the Just Energy Transition Partnership for financial and technical support in decarbonizing. Partnering with donor organizations, financial institutions, and private investors will gather the necessary resources for the energy transition.

Conclusion: A Just and Sustainable Future for Bangladesh

Bangladesh’s energy transition is crucial for creating a resilient and sustainable future. Transitioning from fossil fuels to renewable energy is essential for addressing climate change and helping vulnerable communities and workers benefit from this change.

By tackling financing issues, policy gaps, and social protection, Bangladesh can show how to achieve a sustainable energy future that is inclusive, fair, and environmentally friendly.

Bangladesh can achieve a low-carbon, resilient, and fair energy system through commitment, innovative policies, and collaboration, benefiting both its people and the planet.