Bangladesh stresses affordable climate finance for energy transition

Bangladesh has emphasised that its ability to pursue low-carbon development, expand renewable energy and implement climate commitments will depend heavily on predictable and affordable international financing.

At a press briefing on Friday, a Bangladesh delegation led by Environment, Forest and Climate Change Minister Abdul Awal Mintoo said the first four days of formal negotiations had concluded, with discussions continuing on several key agenda items.

However, a number of critical issues remained unresolved, and no final negotiated outcomes had yet been reached.

Bangladesh is working with the Least Developed Countries (LDC) Group, the G77 and China, and other negotiating partners to secure what it described as a balanced and ambitious outcome from the conference.

Funding crucial to Bangladesh’s energy transition

For Bangladesh, climate finance is not simply a matter of meeting adaptation costs but also a critical requirement for transforming its energy system, expanding renewable power generation and reducing dependence on fossil fuels.

The country’s latest climate commitment, Nationally Determined Contribution (NDC 3.0), sets a target of reducing greenhouse gas emissions by 6.39 percent below the business-as-usual scenario by 2035 using domestic resources. An additional 13.92 percent reduction is conditional on international financial and technological support.

This means a substantial part of Bangladesh’s emissions-reduction ambition will depend on whether developed countries deliver the promised funding and facilitate access to clean technologies.

Bangladesh has been pursuing rooftop solar expansion, renewable energy development, tree planting, canal restoration and other climate-related initiatives. The delegation said these measures could strengthen resilience, support sustainable development and create green employment opportunities.

However, scaling up the clean energy transition requires substantial investment in renewable power infrastructure, modern energy technologies and climate-friendly development, making international cooperation indispensable.

The delegation also called for greater and more accessible adaptation finance, highlighting the LDC Group’s demand for annual adaptation funding of US$120 billion before 2035.

It urged developed countries to establish a clear pathway for fulfilling their climate finance commitments and ensure that funding reaches countries implementing their National Adaptation Plans.

Bangladesh welcomes US$30m climate investment

Bangladesh has welcomed an announcement by the Climate Investment Funds (CIF) that it is among the first five countries expected to receive US$30 million each.

The proposed funding is expected to support stronger coastal infrastructure and climate-friendly agriculture, two areas considered essential for protecting vulnerable communities and sustaining economic activities amid increasing climate risks.

The announcement offers an important financing opportunity for Bangladesh, although the country has called for much larger and more predictable financial flows to address the scale of its climate and development challenges.

The delegation stressed that climate finance should reach local communities and support practical adaptation measures rather than remain confined to planning and institutional processes.

It also called for adaptation indicators that can measure actual improvements in climate resilience without imposing unnecessary reporting requirements on developing countries.

Bangladesh further urged faster implementation of National Adaptation Plans and greater emphasis on locally led adaptation.

Loss and damage funding remains a priority

The delegation called for additional resources for the Fund for Responding to Loss and Damage, alongside a faster and more accessible mechanism to help vulnerable countries respond to climate-related disasters.

It also urged negotiators to make practical progress on the Global Goal on Adaptation, maintain support for the Mitigation Work Programme and provide meaningful assistance to countries implementing their climate pledges.

The funding demands reflect Bangladesh’s growing exposure to climate-related hazards despite its relatively small contribution to global emissions.

According to the delegation, Bangladesh accounts for less than 0.5 percent of global greenhouse gas emissions, yet remains among the countries most vulnerable to climate change.

Cyclones, floods, saltwater intrusion and heatwaves are increasingly threatening lives, livelihoods, agriculture, infrastructure and development gains.

The delegation cited the World Meteorological Organization’s 2026 climate update, which put the global average temperature for January to September at approximately 1.47 degrees Celsius above pre-industrial levels.

Trade measures raise concerns

Bangladesh has also expressed concern about climate-related trade measures, particularly the European Union’s Carbon Border Adjustment Mechanism (CBAM).

The delegation warned that such measures could disproportionately affect businesses, workers and export-oriented industries in developing countries if introduced without adequate consideration of their economic circumstances and technological capabilities.

It argued that climate policies should be fair, inclusive and consistent with the principles of the Paris Agreement, particularly the principle of common but differentiated responsibilities and respective capabilities.

For Bangladesh, an equitable global energy transition must therefore include not only emissions-reduction commitments but also financial assistance, technology transfer and sufficient time and resources for developing economies to adapt their industries.

The country’s position reflects the wider challenge facing developing economies: pursuing cleaner energy and lower emissions while maintaining economic growth, energy security and employment.