Bangladesh, a rapidly developing nation, addresses the dual narratives of sustaining economic growth and ensuring environmental sustainability. To address these challenges, Bangladesh has sought international partnerships to bolster its renewable energy sector and enhance energy efficiency. Notably, the Nordic countries—Norway, Sweden, and Denmark—have emerged as key allies in Bangladesh’s energy transition journey. Through substantial investments, technological expertise, and strategic collaborations, these nations are helping Bangladesh move towards a greener and more sustainable future.
Norway-Bangladesh Energy Cooperation: Norfund’s $1 Billion Renewable Energy Investment
On Oct. 17, 2023, Norfund, Norway’s investment fund for developing countries, announced a groundbreaking $1 billion investment aimed at strengthening the renewable energy sector across eight countries, including Bangladesh. This investment is managed by the Climate Investment Fund (CIF), which focuses on promoting renewable energy and low-carbon technologies. The initiative targets the development of solar power plants, wind farms, and rooftop solar installations in Bangladesh, significantly enhancing the country’s sustainable energy infrastructure.
This strategic investment aligns with global efforts to transition to greener energy sources and positions Bangladesh as a critical player in the renewable energy arena. The focus on solar power plants and wind farms is particularly crucial for Bangladesh, a country with ample sunlight and coastal winds, making these technologies highly viable. Furthermore, the emphasis on rooftop solar installations highlights the potential for decentralized energy solutions that can provide clean energy to both urban and rural areas.
Norfund’s investment not only brings financial resources but also leverages Norway’s extensive experience and expertise in renewable energy. This collaboration is expected to drive technological advancements and improve energy efficiency in Bangladesh. By integrating renewable energy into its power grid, Bangladesh can reduce its reliance on fossil fuels, decrease greenhouse gas emissions, and enhance energy security.
Sweden’s Commitment to Transforming Bangladesh’s Energy and Garment Sectors
Sweden has also demonstrated a strong commitment to supporting Bangladesh’s energy sector development. On 10 November 2020, Sweden expressed its eagerness to collaborate with the Bangladesh government to improve the country’s power and energy infrastructure. This partnership includes comprehensive discussions on enhancing transmission and distribution networks, waste management systems, and affordable energy production.
Sweden’s engagement in this sector underscores its dedication to sharing expertise and fostering sustainable development. The collaboration aims to address key challenges in Bangladesh’s energy sector, such as transmission losses, inefficient distribution networks, and inadequate waste management practices. By improving these areas, Sweden hopes to create a more efficient and sustainable energy infrastructure in Bangladesh.
A significant milestone in this cooperation came on 5 May 2024, when Sweden proposed a partnership to facilitate a green transition within Bangladesh’s garment sector, which is a major contributor to the country’s economy. This proposal emphasizes the importance of renewable energy development and energy efficiency in industrial operations. Discussions highlighted ongoing and proposed solar power projects, which are essential for Bangladesh’s goal of generating 40% of its electricity from clean energy sources by 2041.
Sweden’s initiative reflects its broader commitment to aiding Bangladesh in achieving a more sustainable and eco-friendly industrial sector. The focus on the garment industry, which is in other countries known for its high energy consumption, is particularly noteworthy. By transitioning to renewable energy and implementing energy-efficient practices, the garment sector can reduce its carbon footprint and contribute to Bangladesh’s overall sustainability goals.
Denmark’s Role in Bangladesh’s Renewable Energy Revolution
Denmark, known for its leadership in renewable energy, has also played a pivotal role in supporting Bangladesh’s energy transition. Danish companies Copenhagen Infrastructure Partners (CIP) and Copenhagen Offshore Partners (COP) have proposed a substantial $1.3 billion investment aimed at generating 500 megawatts of offshore wind energy in Bangladesh. This ongoing project is designed to align with the Mujib Climate Prosperity Plan, which aims to enhance climate resilience and sustainable development in Bangladesh.
The initiative focuses on creating a commercial, utility-scale offshore wind project off the coast of the Bay of Bengal. This project is expected to harness the region’s strong coastal winds to produce clean energy, significantly contributing to Bangladesh’s renewable energy capacity. Additionally, Summit Group, a prominent infrastructure operator and developer in South Asia, has expressed interest in joining the consortium, further bolstering the project’s potential impact.
On 9 June 2023, Bangladesh and Denmark approved a Joint Action Plan (2023-2028) under the Sustainable and Green Framework Engagement. This plan marks a significant step in their bilateral cooperation and emphasizes a partnership in green and clean technologies. The collaboration aims for sustainable development through various sectors, including renewable energy, energy efficiency, circular economy, sustainable urbanization, and the blue economy.
Denmark’s keen interest in deepening its collaboration with Bangladesh is evident in its focus on these diverse sectors. The Joint Action Plan outlines strategies to promote renewable energy development, improve energy efficiency, and foster sustainable urbanization. It also emphasizes the importance of a circular economy, which aims to minimize waste and make the most of resources. Moreover, the inclusion of the blue economy highlights the potential for sustainable use of ocean resources for economic growth, improved livelihoods, and job creation.
Bangladesh-Finland Energy Cooperation
At the “Finland’s Smart Infrastructure Day; Building Bangladesh” seminar on 28 November 2022, Finland expressed its commitment to supporting Bangladesh’s energy sector, smart city initiatives, and smart port solutions. Finnish Ambassador Ritva Koukku-Ronde highlighted opportunities for economic and technical cooperation, urging Finnish companies to invest in these sectors. FBCCI President Md Jashim Uddin emphasized the benefits of Finnish expertise for Bangladesh’s development. The seminar, organized by the Finnish Embassy in Dhaka and the FBCCI, featured key businesses from both countries discussing potential collaborations.
The energy cooperation between Bangladesh and the Nordic countries—Norway, Sweden, and Denmark—demonstrates a shared commitment to sustainable development and the global transition to renewable energy. These partnerships provide substantial financial investments, technological expertise, and innovative solutions to address the challenges of energy efficiency and climate resilience. Norway’s $1 billion investment through Norfund aims to significantly enhance Bangladesh’s renewable energy infrastructure, positioning the country as a key player in the global renewable energy sector. Sweden’s collaborations focus on improving energy efficiency and promoting a green transition in Bangladesh’s industrial sectors, particularly the garment industry. Denmark’s substantial investment in offshore wind energy and the Joint Action Plan under the Sustainable and Green Framework Engagement highlight a comprehensive approach to sustainable development across various sectors.
As Bangladesh moves forward with these collaborations, it positions itself as a critical player in the global effort to achieve a greener and more sustainable future. The support from Norway, Sweden, and Denmark not only helps Bangladesh meet its energy needs but also contributes to global climate goals. These partnerships reflect a shared vision of fostering sustainable economic growth, enhancing energy security, and addressing the pressing challenges of climate change.
The Nordic countries’ energy cooperation with Bangladesh serves as a model for international collaboration in the pursuit of sustainable development. Through strategic investments, technological innovation, and a commitment to renewable energy, Norway, Sweden, and Denmark are helping Bangladesh pave the way towards a cleaner, more resilient, and prosperous future.
[Photo by Ronitsunny, via Wikimedia Commons]
Syed Raiyan Amir is a Senior Research Associate/ Research Manager at the KRF Center for Bangladesh and Global Affairs (CBGA). He was a Research Assistant at the United Nations Office on Drugs and Crime (UNODC) and International Republican Institute (IRI). He has completed his internship at Bangladesh Enterprise Institute (BEI). The views and opinions expressed in this article are those of the author.
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