Climate-vulnerable countries need adequate support: Chief Adviser
-
-
|
Photo: Collected
Dhaka: The Chief Adviser to the interim government, Dr. Muhammad Yunus, said that most climate-vulnerable countries with limited decarbonization capacity need adequate financial and technical support to develop green industries.
He said that Bangladesh is willing to work with the Climate Club by leveraging international cooperation in capacity building, technology transfer and concessional decarbonization finance.
The Chief Adviser made these remarks on Tuesday (November 12) while addressing a high-level Climate Club leaders’ meeting hosted by Germany and Chile on the sidelines of the COP-29 conference in Baku, the capital of Azerbaijan.
Dr. Yunus said that comprehensive international action is needed to reduce greenhouse gas emissions in a more rapid and sustainable manner and to reduce global greenhouse gas emissions by 43 percent by 2030 and limit warming to 1.5 degrees Celsius to reach net-zero by 2050.
He called for the demonstration and deployment of proven low-emission technologies, especially in emerging markets and developing economies.
The Chief Adviser said, “Many decarbonizations technologies require significant upfront investments. Such high capital investments can be a barrier for industry in countries with limited access to finance, especially in the most vulnerable developing countries like Bangladesh.”
The Chief Adviser stressed the need to develop financial mechanisms to finance industrial decarbonization by encouraging private sector industry to access concessional finance in emerging developing economies like Bangladesh.
He said it is essential to ensure international cooperation, capacity building and technology transfer under Article 6.8 of the Paris Agreement.
The Nobel Peace Prize-winning economist, emphasizing the need for an international agreement on carbon pricing or cap-and-trade taxes to create a level playing field by imposing a fair carbon cost on imports, said that least developed countries (LDCs) will need preferential treatment given their specific circumstances and development needs.
On industrial decarbonization, he said, carbon emissions could reduce the incentives for innovation based on low-carbon technologies globally, as some sectors may prioritize costs over sustainable management practices.
Dr. Yunus added that to mitigate these risks, policies such as carbon cap coordination and international cooperation are essential to balance decarbonization efforts with economic stability.
On the other hand, these policies could affect the competitiveness of companies in particularly vulnerable developing countries like Bangladesh. Higher emissions policies will make them less competitive globally in the face of higher production costs, the Chief Adviser added.
He added, “Therefore, preferential arrangements will be required for least developed countries given their specific circumstances and development needs.” ’
The Chief Adviser said that ambitious mitigation policies in a fragmented manner are pushing industrial activities into regions with no or less stringent carbon pricing policies, which could lead to carbon emissions and thus hinder the global goal of reducing overall global carbon emissions.
He said that the EU’s proposed Carbon Border Adjustment Mechanism (CBAM) could encourage countries to strengthen their climate policies by indirectly applying emission standards to exported products and preventing carbon emissions.
Professor Yunus said that international cooperation is needed to support a just and inclusive transition, as well as to boost economic growth and create new job opportunities in emerging markets.
