For millions in Bangladesh, flooding is not just an isolated disaster, but increasingly becoming a way of life. Every year, families are forced to rebuild their lives after devastating floods and cyclones — a cycle that is only worsening with climate change. As one of the world’s most climate-vulnerable nations, Bangladesh faces a choice: continue relying on fossil fuels or invest in a clean energy future. The stakes are high: Bangladesh will need at least $12 billion by 2050 to combat climate change. But every dollar spent on fossil fuel imports is a dollar not spent on healthcare, education, and infrastructure — critical investments for a country already struggling with poverty and inequality.
The Price of Inaction: How Climate Change is Already Costing Bangladesh
Bangladesh’s vulnerability to climate change is undeniable. Two-thirds of the country’s land lies just five meters above sea level, placing it at heightened risk from cyclones, floods, and landslides. Climate-related damages are already immense: rural families spend almost $2 billion annually repairing climate damage, exceeding government spending and accounting for 12 times the international climate aid received. By 2050, 17% of Bangladesh’s territory could be lost to rising sea levels, displacing millions and reducing agricultural land by 30%. Climate change is not a distant threat — it’s already reshaping lives.
The economic cost is staggering. Climate-related damages could cost Bangladesh up to a third of its agricultural GDP and under certain conditions, see its GDP fall by as much as 9% by 2050, with agriculture suffering the heaviest losses. The poorest communities, often in rural areas, will bear the brunt, exacerbating poverty and inequality. Entire villages are being swallowed by the sea. Extreme weather events are becoming more frequent, forcing families into migration and deepening poverty.
Breaking Free from Fossil Fuel Dependence
Despite these challenges, Bangladesh continues to rely on fossil fuels, with a net energy import rate of 44.3%. This dependence is a major economic risk. In 2022, when global energy prices surged, Bangladesh’s foreign reserves plummeted.
Foreign reserves, the collection of foreign currencies and assets a country's central bank holds, are crucial because they allow a nation to stabilize its currency, pay for essential imports, and respond to crises. When reserves run low, inflation rises, and necessities, like food and medicine, become more expensive, pushing millions deeper into poverty.
Investing in renewables offers a solution. By transitioning to solar and wind energy, Bangladesh can reduce reliance on costly imports, protect the economy from fuel price volatility, make electricity more affordable for families, and free up resources for other investments, such as education, healthcare, and climate adaptation efforts. This is not just an environmental decision — it is an economic one. Every taka spent on fossil fuels is a missed opportunity for long-term growth and resilience.
Powering a Fairer Future: Why Renewable Energy Can Lift Millions Out of Poverty
Bangladesh’s energy crisis is also a social justice issue. Power outages cost $3.3 billion annually, disproportionately impacting the poorest communities. Renewable energy, especially solar and wind, could provide reliable, affordable power to rural and underserved regions. For millions of Bangladeshis living in extreme poverty, the high cost of electricity forces difficult trade-offs between food, healthcare, and education. By reducing fossil fuel dependence, renewable energy would stabilize prices and make electricity more affordable, allowing low-income families to allocate their limited resources more effectively.
Moreover, the areas with the highest poverty rates are the most at risk from climate change in the country. Climate policies targeting these vulnerable areas address both environmental risk and the systemic inequalities that keep people in poverty. By investing in renewables, Bangladesh can reduce energy poverty, promote economic equity, and ensure that the benefits of the green transition are felt across society. Access to reliable energy isn’t just about powering homes — it’s about powering opportunity, development, and a path out of poverty.
A Global Message: How Bangladesh’s Green Transition Can Inspire Change
The world is facing a polycrisis — a web of interconnected challenges including climate change, economic instability, and migration. Bangladesh is on the frontlines, with 4.1 million people displaced by climate-related disasters, a number expected to rise to 13.3 million by 2050.
More importantly, Bangladesh’s response can send a powerful message. If Bangladesh, despite limited resources, successfully scales renewable energy, it challenges the narrative that economic constraints justify climate inaction. This sets a precedent for other developing nations and puts moral and diplomatic pressure on wealthier countries to accelerate their own transitions. By proving that clean energy is viable even in emerging economies, Bangladesh strengthens the case for higher global commitments and greater accountability in climate negotiations.
The Road Ahead: Why Bangladesh Must Act Now on Renewable Energy
Bangladesh stands at a crossroads. The decisions made today will not just shape its economy — they will determine the future of millions living on the frontlines of climate change. Investing in renewable energy isn’t just about sustainability; it’s about survival, economic independence, and ensuring that no community is left behind. The cost of inaction is far greater than the price of transition. By choosing renewables, Bangladesh has the chance to break free from fossil fuel dependency, lift millions out of energy poverty, and build a future where growth doesn’t come at the expense of the planet.
More than that, it can send a powerful message to the world: if a developing nation with limited resources can take bold climate action, then wealthier, high-emission countries have no excuse to delay. The path forward is clear. The time to act is now.
This series is made possible with funding from Beyond Bretton Woods and Middlebury College.