PM Tarique Rahman Orders Action Plan to Tap Global Carbon Credit Market

Prime Minister Tarique Rahman today directed the authorities concerned to formulate a comprehensive action plan to reduce carbon emissions and enhance Bangladesh's carbon credit potential, aiming to position the country strategically within the growing global carbon market.

The directive came during a high-level executive meeting on climate change held at the Prime Minister's Office in the Cabinet Division at the Bangladesh Secretariat, according to Deputy Press Secretary to the Prime Minister, Hasan Shiplu.

Diversifying Into Green Technologies

During the session, the Prime Minister underscored the importance of expanding the use of renewable energy and promoting environmentally friendly technologies across the industrial sector. He emphasized that improving energy efficiency, conserving national forests, and executing large-scale tree plantation programs are critical to increasing the nation's carbon absorption capacity.

The instructions align with the government's ambitious five-year initiative launched on June 13 to plant 25 crore (250 million) trees nationwide. Recent estimates from the World Bank suggest that if successfully executed, large-scale afforestation alone could enable Bangladesh to tap significant annual revenue from global carbon trading, despite the nation accounting for less than 0.56 percent of global greenhouse gas emissions.

Ensuring Transparency and Data Integrity

To securely capitalize on these opportunities, Prime Minister Tarique Rahman instructed officials to prepare realistic strategies that ensure maximum transparency in carbon credit management. He stressed the necessity of establishing a reliable national database and strengthening institutional coordination with international environmental organizations to facilitate certified carbon credit generation and trading.

To streamline these cross-sectoral initiatives, the Prime Minister directed the immediate formation of a specialized committee. This body will be tasked with improving policy synchronization and administrative coordination among the relevant ministries and subordinate agencies working toward securing carbon credits.

Unlocking New Climate Finance Pathways

Senior government officials and ministers present at the meeting noted that a carbon credit functions as an internationally recognized financial instrument awarded for reducing or removing one metric ton of carbon dioxide (CO₂) or its equivalent greenhouse gases from the atmosphere. They agreed that structured emission reduction measures would significantly bolster Bangladesh's prospects of earning credits according to international frameworks like Article 6 of the Paris Agreement.

Under this market-based compliance mechanism, foreign entities or carbon-heavy industries that exceed their allotted emissions limits must purchase verified credits from low-emitting nations like Bangladesh that successfully execute clean technologies, methane capture, or reforestation projects.

The high-level meeting was attended by the State Minister for Environment, Forest and Climate Change, Dr. Sheikh Faridul Islam, alongside various advisors and special assistants to the Prime Minister, secretaries of the relevant line ministries, and senior administrative officials.