A recent study by the Bangladesh Institute of Bank Management (BIBM) highlights that Bangladesh’s renewable energy goals lack clear alignment and adequate funding. Although the Mujib Climate Prosperity Plan (MCPP) sets a 40 percent renewable energy target by 2041, the Integrated Energy and Power Master Plan (IEPMP) 2023 aims for only 8.8 percent, revealing inconsistencies between government policies. Currently, renewables make up just 2.93 percent of Bangladesh’s energy production, with solar energy dominating. Achieving a 40 percent renewable share requires annual investments of $1.53 to $1.71 billion, a gap compounded by a lack of grid modernization.
BIBM Professor Shah Md Ahsan Habib emphasized that financial constraints hamper small-scale green entrepreneurs, with banks hesitant due to high transaction costs and inadequate documentation. Bangladesh required Tk 20,520 crore to hit the 40 percent target in 2023, but banks disbursed only Tk 742 crore. Experts suggest increased support from banks and foreign investments to bridge the funding gap and meet national energy targets.
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