Experts call for policies and investments to earn from carbon market

Experts at a roundtable discussion stressed the need for adopting a strategic approach to carbon financing with clear policies and increased investment to unlock Bangladesh’s carbon market potential.

LightCastle Partners, an international consultancy firm, arranged the roundtable discussion titled ‘Catalysing Carbon Financing in Bangladesh: Private Sector Pathways and Policy Readiness’ in the Gulshan area of Dhaka on Monday.

They organised the event to raise awareness among private sector leaders and investors about the country's readiness for carbon market participation and implementation of Article 6 under the Paris Agreement.

Bangladesh holds the potential to earn approximately $1.0 billion annually from the global carbon market. While the country has made some progress generating $17 million since 2006 through initiatives like improved cooking stoves and solar home systems, investment in this sector remains limited due to the absence of a clear national policy.

Key speakers at the event included: Ahmed Zubaer Mahmud, additional director of the Sustainable Finance Department of Bangladesh Bank; Ashim Rahman, policy advisor, Embassy of the Netherlands in Bangladesh; Shahadat Hossain Shakil, environmental expert; and Sumaiya T. Ahmed, head of Sustainability, PRAN-RFL Group.

The roundtable was moderated by Bijon Islam, chief executive officer (CEO) of LightCastle Partners.

A featured presentation titled ‘Agriculture, Bangladesh and the Carbon Market’ was delivered by Lincoln Teo, managing director of ZERO13.

In his presentation, Teo emphasised Bangladesh’s commitment to combating climate change, citing national goals to produce 16 per cent of energy from renewable sources by 2030 and reduce annual carbon emissions by 89.47 tonnes of CO₂e.

He noted that achieving these targets will significantly support sustainable agriculture, water management, and overall economic growth.

The Dhaka Climate Action Plan, aligned with global and national climate commitments, was also highlighted as a critical step toward making the capital more livable and environmentally sustainable by 2050.

Ahmed Zubaer Mahmud underscored the importance of coordinated action across stakeholders. “While we've set green financing targets and launched refinancing schemes, we must now strengthen public-private cooperation and follow international best practices, with strong banking sector support,” he said.

Bijon Islam called for innovative financing models aligned with environmental and social impact. “Carbon financing can unlock new investment channels. But we must rethink how we mobilise capital to support a low-carbon, inclusive economy,” he noted.

Several key recommendations emerged from the event. These include: enhancing the use of renewable energy to reduce carbon emissions; improving industrial efficiency through technological integration; leveraging carbon financing opportunities in sectors such as waste management and forestry; strengthening the capacity and effectiveness of regulatory institutions to encourage greater private sector participation; and identifying as well as addressing financial barriers to implementation.