Green Economy-How I Met Your Mother Earth (Part 3)

As I write this, we are dealing with a bloody August. The number of people in a deplorable state because of this flood (be it political or natural) is way too many.

Bangladesh is acutely aware of the environmental challenges it faces, which are compounded by its vulnerability to climate change. Rising sea levels, increasing temperatures, and more frequent and severe natural disasters pose significant risks to the country's development gains while the country is striving to become a middle-income country by 2026, with ambitions to reach high-income status by 2041.

According to the Global Climate Risk Index, Bangladesh ranked seventh among the countries most affected by climate change in 2022 (Germanwatch, 2023)

Recognizing these challenges, the government of Bangladesh has taken steps to transition towards a Green Economy. The country's Eighth Five-Year Plan (2020-2025) emphasizes green growth as a critical pillar of sustainable development, with a focus on renewable energy, energy efficiency, and climate resilience (Bangladesh Planning Commission, 2020).

In terms of renewable energy, Bangladesh had set a target to generate 40% of its electricity from renewable sources by 2041, up from just 3% in 2022 (Sustainable and Renewable Energy Development Authority, 2023). The country has also made significant progress in expanding access to clean energy through initiatives like the Solar Home Systems (SHS) program, which has provided solar power to over 5 million households in rural areas (Infrastructure Development Company Limited, 2023).

Despite these efforts, Bangladesh still faces significant challenges in transitioning to a Green Economy. The government has changed, which might thwart existing plans away under the new regime.

It remains heavily dependent on fossil fuels, with over 60% of its electricity generated from natural gas (Bangladesh et al., 2023). Additionally, rapid urbanization and industrialization have led to increased pollution and environmental degradation.

As an emerging Asian Tiger, trade plays a central role in our economy, especially in the textile and garment industry. These two spearheads account for more than 80% of the country's exports and employ over 4 million people, most of whom are women (Export Promotion Bureau of Bangladesh, 2023).

The global demand for sustainable products is on the rise, creating new opportunities for Bangladesh to diversify its export base. For example, the global organic cotton market is projected to grow at a CAGR of 12% from 2023 to 2030, driven by increasing consumer demand for eco-friendly textiles (Grand et al., 2023).

By investing in sustainable production and certification, Bangladesh could tap into this growing market and enhance its green trade potential. I think the Green Economy presents an opportunity for Bangladesh to transform its trade practices and promote sustainable development. To fully capitalize on the opportunities presented by the Green Economy and trade, Bangladesh needs to adopt a comprehensive approach that integrates environmental sustainability into its trade policies and practices.

The transition to a Green Economy requires collaboration between the public and private sectors. The government should foster partnerships with businesses, NGOs, and international organizations to promote green trade and investment.

Bangladesh should actively participate in and promote green trade agreements that include provisions for environmental protection and sustainability.

This could help the country gain preferential access to markets for green products and attract investment in green technologies. It should strengthen its environmental regulations and standards, particularly in industries like textiles that have a significant environmental impact.

This would not only protect the environment but also improve the competitiveness of Bangladeshi products in the global market. To foster innovation in green technologies and practices, the government should support green innovation by providing incentives for research and development in this area.

This could include tax breaks, grants, and subsidies for companies that invest in green innovation. They should prioritize investments in green infrastructure, such as renewable energy, public transportation, and waste management systems. This would not only reduce the environmental impact of economic activities but also create jobs and stimulate economic growth.

The transition to a Green Economy will require unprecedented levels of international cooperation. All these impending issues cannot be solved by any country alone.

Whether it is through international agreements, sustainable trade deals, or collaborative efforts to develop green technologies, the Green Economy is a global endeavour. However, cooperation is not just about governments.

The private sector, in particular, has a critical role to play in financing and scaling up green solutions. As Larry Fink, CEO of BlackRock, put it in his 2023 letter to CEOs, "The next 1,000 unicorns will not be search engines or social media companies; they will be sustainable, scalable innovators – start-ups that help the world decarbonize and make the energy transition affordable for all consumers" (BlackRock, 2023).

The International Renewable Energy Agency (IRENA) projects that renewables could account for 90% of the increase in global power capacity through 2030, with solar and wind leading the way (IRENA, 2023).

The global green building materials market is projected to reach $529 billion by 2028, driven by increasing demand for energy-efficient buildings (Fortune Business Insights, 2023). Moreover, let us not forget the rise of electric vehicles (EVs) – the EV market is expected to grow at a CAGR of 30% between 2023 and 2030, reaching $1.4 trillion by 2030 (BloombergNEF, 2023).

This seems reassuring since it seems going green is not just good for the planet – it is good for business. That being said, after Bangladesh 2.0 happened, if I keep a separate section for Gen Z (born 1997-2012) and Gen Alpha (born after 2012), I do not think anyone would mind. Yes, the impulsive, instant gratification, fickle-minded masters of quick fixes who murdered the English language (seriously? Skibidi?) peeps whom we all love to hate because we do not get them. However, considering their activities, 'fam', you all are 'lit' and 'slaying', 'no cap'.

A 2023 survey by McKinsey found that 85% of Gen Z consumers consider the environmental impact of a product before making a purchase, compared to 74% of Millennials and 60% of Gen X (McKinsey & Company, 2023).

For them, sustainability is not just a nice-to-have – it is a non-negotiable. Whether it is a Netflix documentary on sustainable fashion or a TikTok trend promoting zero-waste lifestyles, the Green Economy is no longer just a niche topic for environmentalists.

It is becoming a mainstream movement driven by these young consumers who are increasingly concerned about the environmental impact of their choices.

Social media, their apparently useless tool, has turned the Green Economy into a meme, and that is not a bad thing. Memes are a powerful tool for communication, capable of turning boring complex ideas into easily digestible and shareable content with a dash of fun/sarcasm in it. From Greta Thunberg's "How dare you!" speech to memes about reusable straws and soy lattes, social media is thriving with the conversation around the Green Economy. However, it is not just about memes – social media is also a platform for movements.

The #FridaysForFuture movement, started by Greta Thunberg, has mobilized millions of young people around the world to demand action on climate change.

Similarly, the #StopAdani campaign in Australia used social media to successfully oppose a massive coal mine project, highlighting the power of online activism.

Platforms like TikTok, Instagram, and X are hotbeds of green activism, with hashtags like #ClimateStrike, #FridaysForFuture, and #ZeroWaste trending regularly.

Whether it is through viral challenges, educational content, or just good old-fashioned shaming, Gen Z and Gen Alpha are using social media to hold companies and governments accountable for their environmental impact.

These digital natives have grown up in a world where climate change is not a distant threat, but it is putting their 'gyatt' on the line. Being aware of it, they are using their considerable influence to push for change. So maybe Wi-Fi is also a weapon in this battle?

If you are still pondering, can we really go green? The answer is simple. Yes, a 1000 times yes. We have the means- the technology, the willpower, the situation. The transition to a Green Economy is not just about changing how we produce and consume – it is about changing how we think.

It is about recognizing that the old model of economic growth is no longer viable. It is about embracing a new model, one that embraces sustainability and cares genuinely for the planet. That is not easy. So the question should be, will we go green?

We love our planet, our very own mother Earth, no? If we consider this as love, then let me end this with Taylor Swift, "The stakes are high, the water's rough, But this love is ours."

For Part 2, please click on this link.

(The writer is an engineer turned finance and ESG enthusiast, trying to drink gulps from the immensely stimulating ocean of finance/economics/ESG and move to greener pastures to shift from his tedious job in the capital market. Tell him how he can do that at [email protected])