Chief Adviser Professor Muhammad Yunus said most climate vulnerable countries with limited decarbonisation capacity need to have adequate financial and technical support to develop green industries.

He said Bangladesh is willing to work with Climate Club to catalyse international cooperation in terms of capacity building, technology transfer and concessional decarbonisation finance.

The Chief Adviser was speaking at the High Level Climate Club Leaders Meeting, hosted by Germany and Chile, at COP29 in Baku, the capital of Azerbaijan, according to a message received in Dhaka.

Prof Yunus said deep, rapid and sustained reduction in greenhouse gas (GHG) emissions and comprehensive international action are required for reducing global GHG emissions by 43 percent by 2030, reaching net-zero by 2050 to limit warming to 1.5 degree Celsius.

He called for demonstrating and deploying proven low-emissions technologies, particularly in emerging markets and developing economies.

"Many decarbonisation technologies require significant upfront investment. These high capital costs can be a barrier for industries, particularly in most vulnerable developing countries like Bangladesh, with limited access to financing," he said.

The Chief Adviser underscored the need for developing financial vehicles to finance the industrial decarbonisation fostering access to concessional finance for the private sector industries in the emerging developing economies like Bangladesh.

Ensuring international cooperation, capacity building and technology transfer under Article 6.8 of the Paris Agreement are essential, he said.

Putting emphasis on international agreements on carbon pricing or border adjustment taxes to create a level playing field by imposing equivalent carbon costs on imports, the 2006 Noble Peace Laureate said the least developed countries (LDCs) will need preferential treatment owing to their special circumstances and development needs.

About the industry decarbonisation, he said, carbon leakage can dilute incentives for innovation in low-carbon technologies globally as some sectors might prioritise cost over sustainable practices.

"To mitigate these risks, policies such as carbon border adjustments and international cooperation are essential to balance decarbonisation efforts with economic stability," Prof Yunus said.

Conversely, he said, these policies can affect the competitiveness of the companies of particularly vulnerable developing countries like Bangladesh since strong emission policies will cause higher production costs, making them less competitive globally.

"Hence, preferential treatments are required for LDCs owing to their unique circumstances and development needs," he added.

The Chief Adviser said advancing ambitious mitigation policies in a fragmented way is leading to emitting industrial activities moving to regions with less stringent or no carbon pricing policies, which leads to carbon leakage and thus may hamper the global goal of reducing overall global emissions.

Carbon Border Adjustment Mechanisms (CBAMs) proposed by the EU, could incentivise countries to strengthen their climate policies by indirectly applying emissions standards to exported goods and prevent carbon leakage, he said.

Prof Yunus said international collaboration is required to foster economic growth and create new job opportunities in emerging markets, supporting a just and inclusive transition.

Source: BSS