Climate prosperity: What govt's $90b mega plan aims to achieve
The Mujib Climate Prosperity Plan foresees investment prospects in resilient sectors like energy, water, transport, and agriculture, amounting to $90 billion over the coming decade, resulting in incremental GDP gains of over $50 billion.
The government has outlined an ambitious $90 billion investment strategy under the Mujib Climate Prosperity Plan (MCPP) 2022-41, to foster robust socio-economic progress while maximising green initiatives and resilience against climate change.
The MCCP aims to eradicate extreme poverty and climate-induced migration by 2030, create 4.1 million new climate-resilient jobs, improve air quality and mobility, and achieve "net savings or avoided losses" of at least $30 billion annually by 2030.
With assistance from international and other investors, the plan aspires to achieve 30% renewable energy target by 2030 and up to 40% by 2041, while also focusing on enhancing grid resilience and modernisation.
At a cabinet meeting held on 27 February last year, Prime Minister Sheikh Hasina endorsed the draft of the MCPP 2022-2041. The Department of Environment released the final version on its website last month.
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The plan was formulated by the Ministry of Environment, Forest, and Climate Change, in collaboration with various other ministries, including Agriculture, Commerce, Environment, Industries, Road Transport and Bridges, and several others, comprising a total of at least 15 ministries.
The MCPP foresees investment prospects in resilient sectors like energy, water, transport, and agriculture, amounting to $90 billion over the coming decade, resulting in incremental GDP gains of over $50 billion.
The plan's key pillars include building resilience and resource efficiency through infrastructure and agriculture, promoting green growth and sustainable industries, ensuring social development and climate justice, diversifying financing sources, and strengthening governance institutions.
Specifically, the investment plan designates $46.93 billion for climate adaptation, $25.64 billion for building resilience, $2 billion for addressing loss and damage, and $15.15 billion for low-carbon co-benefits.Officials at the Department of Environment told TBS earlier this month that it is key to create a roadmap for transitioning from vulnerability to resilience and development. A dedicated monitoring team will oversee the plan's implementation, with reviews scheduled every five years, particularly in 2030 after achieving the SDG targets.
In an exchange of views with a delegation of Climate Parliament and Bloomberg Foundation at the Secretariat on 30 January, Environment, Forest and Climate Change Minister Saber Hossain Chowdhury said the Bangladesh government would try to mobilise $15 billion over five years for climate actions.
He also said that his ministry would craft a concrete implementation plan under the MCCP and Five-Year Plan to build a resilient and climate-smart Bangladesh.
"Increasing the use of renewable energy is our priority. We will harness the latest innovations and cutting-edge technology but with a Bangladeshi twist. Solutions will be relevant, tailored to our unique needs and landscape," said the minister.
The financing structure of MCPP comprises 36% government expenditure, 47% private sector investment, 16% international partner support, and 1% guarantee for private sector involvement.
Mirza Shawkat Ali, director for Climate Change and International Convention at the Department of Environment, told TBS last week that the 100-day timeline, initiated by the Ministry of Environment, will guide the development of a roadmap for implementing this plan within the specified period. Additionally, several projects are already underway.
He also said that various ministries will make decisions in coordination with this plan for new projects. The Economic Relations Division (ERD) of the Ministry of Planning also has instructions regarding this plan.
"We are working as a team. Another task force team will be prepared from the prime minister's office," Shawkat Ali added.
We have to dream big: Saber
Speaking to TBS on Thursday, Environment Minister Saber Hossain Chowdhury expounded on the vision of the climate action plan and its implementation strategy.
He described the MCPP as a comprehensive and ambitious initiative aimed at shifting Bangladesh's trajectory from vulnerability to resilience to prosperity. The plan prioritises climate adaptation and mitigation measures, emphasising investment mobilisation, public-private partnerships, and transparent governance.
"The plan's key pillars include building resilience and resource efficiency through infrastructure and agriculture, promoting green growth and sustainable industries, ensuring social development and climate justice, diversifying financing sources, and strengthening governance institutions," said the minister.
He mentioned that implementation strategies encompass decentralised approaches, public-private partnerships, as well as innovation and technology adoption.
"Having contributed the very least to climate change, Bangladesh is however one of the most impacted. Despite being at the receiving end and being asked to adapt beyond our means, we see Bangladesh as a role model in adaptation and a pioneer in devising solutions," said Saber.
"It is of course ambitious but we have to dream big," the minister said, listing challenges such as the need for significant financing and ensuring equitable distribution of benefits.
What the mammoth plan aims at
In 2021, Prime Minister Sheikh Hasina presented the gist of the MCCP at the global climate summit, COP26, in Glasgow, explaining Bangladesh's climate resilience strategy to the world.
The plan envisages mobilising $1 billion per year by 2030 from international and national resources to invest in locally-led adaptation.
The action plans entail expanding digital payment coverage, addressing climate refugee issues, establishing a 4-gigawatt offshore wind generation array network along the bay, transitioning coal, oil, and diesel thermal power plants, upskilling the workforce for high-tech green hydrogen and biomass power plants, and identifying high-value green export products.
The plan aims to electrify waterway transportation along 10,000 kilometres of internal river routes, build 10,000 kilometres of bike lanes and footpaths, and upgrade numerous rural, regional, and national roads and highways spanning several thousand kilometres.
The extensive national climate action framework plan also aims to raise tree coverage from 22% to 25% by 2030, curb deforestation and forest degradation, encourage afforestation in char lands and coastal belts, restore river systems around Dhaka city, and enhance urban drainage networks and solid waste management initiatives.
