Bangladesh needs to do to boost Chinese investment in renewable energy: CPD’s recommendations

The Centre for Policy Dialogue (CPD) has outlined key measures Bangladesh should adopt to attract Chinese investment in its renewable energy sector. These include offering tax incentives, reducing import duties, and streamlining documentation processes.

The recommendations were presented by Dr. Khondaker Golam Moazzem, Research Director at CPD, during an event in Dhaka on Thursday, where experts discussed strategies to increase Chinese involvement, particularly in solar energy projects.

The event, organized in collaboration with the Bangladesh-China Renewable Energy Forum, brought together policymakers, industry leaders, and financial experts to discuss strategies to draw overseas investment into renewable energy, particularly solar power projects.

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Dr. Moazzem’s presentation, titled "Overseas Investment in the Renewable Energy Sector: How to Attract Chinese Investment in Bangladesh?", emphasized the need for green bonds and public-private joint ventures to fund renewable energy initiatives. He pointed out that Bangladesh's interim government recently canceled 37 renewable power plants approved under the previous regime, creating a fresh opportunity for Chinese investment.

CPD also noted that Bangladesh’s government has decided to establish 10 grid-connected solar power plants through private sector initiatives, which could serve as a significant test case for Chinese involvement.

Bangladesh has set ambitious targets to meet 40% of its energy needs through renewable sources by 2041. Achieving this will require an estimated investment of $1.5 to $1.71 billion, the CPD reported.

China, the world’s largest investor in renewable energy, has already invested around $676 billion in clean energy in 2023 alone—accounting for 38% of the global total. This positions China as a crucial partner in helping Bangladesh meet its energy goals.

Chief Adviser of the interim government, Prof Muhammad Yunus, had earlier urged Chinese Ambassador to Dhaka, Yao Wen, to consider relocating some of China's solar panel manufacturing facilities to Bangladesh.

During the recent visit of the Chief Adviser to the UNGA, Chinese Foreign Minister Wang Yi indicated that China wants to invest in solar panels in Bangladesh and deepen trade and economic ties.

Today’s event featured prominent figures from both the public and private sectors. Among the speakers were Md. Abdur Rahman Khan FCMA, Chairman, National Board of Revenue (NBR); Chowdhury Liakat Ali, Director, Sustainable Finance Department, Bangladesh Bank; Md. Ariful Hoque, Director General, Bangladesh Investment Development Authority (BIDA); Syeda Afzalun Nessa, Head of Sustainability, HSBC; Md Shahidur Rahman, Country Manager, Jinko Solar Bangladesh; Shafiqul Alam, Lead Energy Analyst, Institute for Energy Economics and Financial Analysis (IEEFA); and Gan Peng, Chairman, Chint Solar (Bangladesh) Co. Ltd. Dr Fahmida Khatun, Executive Director, CPD, moderated the event.