The Energy Transition in Bangladesh

Bangladesh is undergoing a significant shift in its energy sector, balancing its historical reliance on petroleum, natural gas, and coal with a growing emphasis on renewable energy, particularly solar and hydropower. As the country seeks to diversify its energy mix, it is prioritising energy security and sustainability, integrating ESG principles into its development strategy to ensure responsible growth. Bangladesh’s geopolitical position in South Asia, coupled with its industrial growth and rising energy demands, drives its need for a more resilient and diversified energy framework. The country’s increasing investments in renewable energy, alongside its abundant mineral resources such as peat, salt, and limestone, are positioning it as a key player in the region’s energy transition. Furthermore, Bangladesh’s potential for critical minerals such as coal, iron ore, and bauxite provides a foundation for expanding its mining sector to meet both domestic industrial needs and contribute to global supply chains. Bangladesh’s strategic focus on clean energy aligns with its broader economic goals, enhancing its role in regional energy security while contributing to the global shift towards a low-carbon economy. By fostering international partnerships, particularly with neighbouring India and regional organisations like SAARC, and leveraging its natural resources, Bangladesh is positioning itself for long-term sustainable growth and a leading role in South Asia’s energy transformation. These efforts are critical for supporting both national development and climate resilience.