Category: Energy and Power

With the main objectives of creating a competitive energy market, ensuring transparency in management, operation, and tariff determination, fostering a favorable environment for private investment, and safeguarding consumer interests, the Bangladesh Energy Regulatory Commission (BERC) was established as an independent and quasi-judicial autonomous body through the enactment of the Bangladesh Energy Regulatory Commission Act, 2003, passed by the National Parliament on March 13, 2003.

as an impartial and quasi-judicial statutory organization, the Commission is committed to ensuring fair rights, good governance, and justice for all stakeholders in the electricity and energy sectors. Since its inception, the Commission has held regular open meetings and public hearings to determine rational tariffs, prevent customer harassment, introduce prepaid and EVC meters, mobile billing systems, online customer services, and annual bill payment certificates, as well as ensure proper redress for disputes related to unfair and monopolistic practices. BERC carries out its activities in accordance with Section 22 and other relevant provisions of the Bangladesh Energy Regulatory Commission Act, 2003.

activities Related to Energy Audit As per Section 22(a), the Commission has the legal responsibility to assess the efficiency of energy-using entities, evaluate the quality of their machinery and equipment, conduct regular verification, inspection, and analysis of fuel consumption through energy audits, and ensure improved energy efficiency and conservation.

to this end, the Bangladesh Energy Regulatory Commission’s Power Plant Energy Audit Regulation 2022 is under process. Despite the importance of this responsibility, no specific activities had been undertaken in this regard previously. However, to establish a Testing Institute under the BERC, the Rajdhani Unnayon Kartripakkha allocated Plot No. 1 (one bigha) on Road 203, Sector 1 of the Purbachal New Town Project.

the establishment has been delayed due to the non-handover of the allocated plot. A stakeholder workshop for establishing the testing laboratory has already been completed.

the process of assessing the efficiency of captive license-holding entities has also begun.

activities Related to Tariff According to Section 22(b), the Commission is legally responsible for determining reasonable tariffs, improving efficiency, and ensuring safety in electricitygeneration, transmission, marketing, supply, storage, distribution, and service quality.

the Commission determines wholesale (bulk), transmission (wheeling), and retail tariffs for electricity.

it also sets transmission and distribution tariffs for gas and determines consumer-end gas prices. Additionally, the Commission determines the tariff for LPG and Jet A-1 (aviation fuel) and has initiated tariff determination for furnace oil supplied by BPC.

in April 2025, tariffs for new, promised, and existing (excess load users) consumers under the industrial and captive power categories were revised.

activities Related to Licensing As per Section 22(c), the Commission has the legal obligation to issue, cancel, amend, or modify licenses, set licensing conditions, and grant or revoke exemptions from licensing requirements. Under Section 27 of the Act, BERC issues licenses for various categories. Captive generators with capacities exceeding one megawatt are required to obtain a license, while generators of one megawatt (1,000 kW) or less must obtain a waiver certificate.

in FY 2024-2025, the Commission issued a total of 221 licenses and waivers in the electricity sector, 273 in the gas sector, and 408 in the petroleum sector, totaling 902 licenses and waivers across all three sectors.

activities Related to Scheme Approval According to Section 22(d), BERC is legally mandated to approve new investment or project proposals of licensees such as Petrobangla, BPDB, and BPC, considering their financial capabilities. No previous commissions had exercised this authority or received approval requests under this provision.

the present Commission, however, took steps in this regard and, on May 7, 2025, issued letters to all government licensees requesting lists of their current and planned projects. Several licensees have already submitted their lists, and the approval process has commenced.

activities Related to Codes and Standards Under Section 22(e), the Commission has the legal duty to develop and enforce codes and standards to ensure quality assurance.

accordingly, the Bangladesh Energy Regulatory Commission (Electricity Grid Code) Regulations, 2023 have been enacted.

the formulation of the Electricity Distribution Codes and LPG Codes, and Standards is ongoing. for gas sector organizations and companies was completed on February 28, 2025. Implementation of the software in gas companies will begin soon.

in 2024, the Uniform System of Accounts (Electricity) 2024 was developed for electricity sector organizations and companies.

activities Related to Dispute Resolution Under Section 22(g), the Commission is legally responsible for resolving disputes between licensees and between licensees and consumers and, if deemed necessary, referring them to arbitration.

according to Section 40 of the Act, notwithstanding anything in the Arbitration Act, 2001, or any other law, disputes between licensees or between licensees and consumers must be referred to the Commission for resolution. During FY 2024-2025, the Commission received 49 dispute applications, of which 42 were resolved through hearings and orders issued.

additionally, under Section 56 of the Act, consumer complaints against licensees are resolved following prescribed procedures. Participation in the South Asia Forum for Infrastructure Regulation (SAFIR) To enhance regional cooperation in the energy sector among South Asian countries, the South Asia Forum for Infrastructure Regulation (SAFIR) was established in 1999. However, due to limited activity within SAARC, SAFIR’s achievements remain modest.

on December 12, 2024, Mr. Jalal Ahmed, Chairman of BERC, attended the 27th Executive Committee Meeting (ECM) and the 30th Steering Committee Meeting (SCM) held in Delhi, India.

internal Training, Seminars, and Workshops To enhance the skills of BERC’s officers and staff, 14 internal training sessions and 5 workshops/seminars were organized during FY 2024-2025.

it has been decided to hold at least one seminar/workshop every month.

in June 2025, the BERC signed an MoU with the Energy Centre of the Texas Agricultural and Mechanical University, USA.

under this MoU, the BERC is in the process of holding a symposium in January 2025. Initiative to Introduce ERP Software To digitize office operations and establish a paperless environment, BERC has taken an initiative to introduce ERP software for its overall administrative management. Relocation of the Commission Office To ensure improved customer service and a more conducive work environment, the BERC office was relocated from the Trading Corporation of Bangladesh (TCB) building to the IEB Building, Ramna, Dhaka, on June 22, 2025.

The Asian Development Bank (ADB) has signed a $30 million sustainabilitylinked loan facility agreement with Envoy Textiles Limited, marking ADB’s first such loan in Bangladesh.

the financing will support the design and construction of a new automated, energy-efficient spinning unit at Envoy’s manufacturing plant in Jamirdia, Mymensingh, boosting the company’s annual yarn production capacity by 4,550 tonnes.

the loan will also finance the installation of 3.5 MWp rooftop solar panels and refinance short-term local working capital loans. Sustainability-linked loans are performance-based debt instruments tied to predefined key performance indicators, assessed against sustainability performance targets. For Envoy, these include rooftop solar generation capacity and greenhouse gas emission reductions.

Of the many problems plaguing the energy sector, unaccountedfor gas (UFG) or system loss is certainly a significant one.

it constitutes a direct financial loss at a time when the government has to provide subsidies, and does not have enough foreign currency to purchase LNG. System loss is an ageold problem in Bangladesh, as it is in many developing countries. Unpublished data for 11 months of the latest fiscal year (FY 2024-25) from Petrobangla reveal that the total system loss based on the difference between gas entering the national grid and gas sold to customers is 7.77%.

if this is the only loss, it wouldn’t be too bad.

the problem arises with the hidden loss in the domestic or residential sector. Since this sector is predominantly unmetered and consumers pay a flat fee according to the number of burners, the question that logically arises is: how is the amount of gas consumed by this sector determined? The gas shown as consumed is calculated using a hypothetical consumption per burner. The data from the gas consumption of metered customers indicate that this figure is an overestimation. Petrobangla, in their annual gas consumption data for FY 2023-24, has shown a gas consumption of 11% in this sector. Knowledgeable insiders strongly believe this cannot be more than 8%.

therefore, nearly 3% gas is unaccounted-for (UFG).

this UFG is in addition to the 7.8% normally shown in annual reports.

thus, the actual gas loss exceeds 10%. Table 1 presents a historical picture of system loss from the FY 1994-95 to the present.

the first noteworthy thing is that the system loss has increased from 5-6% in the late 1900s/early 2000s to 7-8% in recent years.

the second is that in volume terms, the gas loss has gone from around 25 Bcf to nearly 80 Bcf. Before 2017, the gas loss was something no one worried much about because gas was cheap, and it was thought we would comfortably cross 2030 before any shortage was felt. This belief was shattered in 2015 when the gas shortage started to bite, especially in the industrial sector.

the reason oilfired power plants were introduced was precisely because we could not supply enough gas to our gas-fired power plants. This crisis was considered so serious that power plants started to be built having dual-fuel capability – oil and gas.

today, as a result of the huge scarcity of gas, even a 1% system loss must be looked upon with great seriousness. Moreover, the financial implications of gas loss must be computed in terms of the cost of importing LNG. Petrobangla data on gas sector system loss between the years 2006-07 and 2018-19, nearly 12 years, is unreliable. During this period, gas pressure at the customers’ meters would fall to dramatically low values.

under these pressures, the old meters gave erroneous readings because the meters assume the designated pressure of 15 psig is available.

this resulted in over-billing of hundreds of customers. As a result, instead of system loss, Petrobangla’s data showed system gain. This metering error continued for a long time.

this has been corrected for all the larger distribution companies (Discoms), but the smaller distribution companies still have metering errors.

as a result, their gas situation, even in FY 2023-24, shows system gains (see Table 2). Since system gain is a physical impossibility, hundreds of customers are being overcharged, and theft of gas is continuing undetected. Petrobangla has recently released the financial loss due to UFG or system loss company-wise (Table 2).

it estimates that Tk 3,790 crores is lost as a result of UFG. The financial loss is calculated using a gas price of Tk 18.6 per cubic meter, which is the average price of gas for Petrobangla (LNG gas price + domestic gas price). If this loss is calculated at the full LNG import price, the loss will exceed Tk 12,000 crores or nearly USD 1.0 billion. Note UFG – Unaccounted-for Gas; MMcm – million cubic meters One always hears the name of Titas when it comes to system loss, but it is interesting to note from Table 2 that Bakhrabad has the highest loss at 10%. This is an unacceptably high distribution system loss.

another interesting thing that has come to light in recent times is the GTCL system’s loss of 2%. Such a high transmission loss is unusual, to say the least.

this implies that even before the gas reaches the distribution companies, 2% of the gas handled by GTCL, worth approximately Tk 1,000 crore, is lost. At the full LNG import price, the UFG is worth at least Taka 3,000 cores. Each cargo of imported LNG costs approximately Tk. 500 crore.

that means the equivalent of nearly 6 cargoes of LNG is lost in the transmission network operated by GTCL.

if UFG is assumed to be a metering error, such a high metering discrepancy is technically extremely difficult to explain. Since theft from the high-pressure transmission lines would be highly challenging, to explain this phenomenon to everyone’s satisfaction, Petrobangla needs to investigate this with due importance. The actual system loss of the distribution companies, especially Titas and Bakhrabad, is much more than revealed by the data in Table 2.

this is because these larger distribution companies supply a lot of gas to bulk users, i.e., the gasbased power plants and fertilizer plants. There is very little or no system loss in the supply to these customers.

if the gas supplied to these bulk users is deducted from the total supplied by the discoms, then the actual performance with regard to gas loss emerges. For example, in FY 2023-24, a total of 992 Bcf of gas was supplied, of which 75 Bcf was UFG, 545 Bcf, and 51 Bcf were supplied to gasbased power plants and fertilizer plants, respectively.

therefore, 992-545-51 = 396 Bcf of gas was distributed by the distribution companies to non-bulk users, i.e., industries, CNG stations, commercial institutions, and domestic customers.

the loss of 75 Bcf of gas shown for 2023-24 occurs in these sub-sectors.

therefore, the actual loss is approximately 18.9% (75/396). A long time back, there was a study of gas loss according to feeders (pipelines serving areas); some feeders with a high percentage of residential and small commercial/industrial customers were found to have a loss exceeding 30%. This clearly indicates the problem of distributing gas to densely packed areas. Table 3 shows the mean UFG (system loss) in various regions of the world.

as can be seen, the average system loss of the world’s natural gas transmission and distribution infrastructures is only 1.67%. However, high system losses do exist, but very high system lossesare becoming rare.

the countries with the highest UFG percentages are Myanmar (15%), Syria (13.8%), Pakistan (11.7%), and South Africa (8%) (Ravalec et al., 2025).

it should, however, be noted that two of the high system loss countries are embroiled in civil wars, while the other two are countries that have never been able to manage their energy sector well. Table 3: UFG (System Loss) from Natural Gas Transmission and Distribution Network in 2021 Source – Global methane emissions from natural gas transmission and distribution networks Geoffroy Hureau, Armelle Lecarpentier, Sylvain Serbutoviez, Jean Kaniewicz, Mike Madden, Chris Brooks, Aileen Robertson, Colin Harrison, Chris Langston and Mickaele Le Ravalec Sci.

tech.

energ.

transition, 80 (2025) 28 DOI: https://doi.org/10.2516/stet/2025007 Countries with moderate system losses are Russia (2.0%) and the USA (2.1%) (Ravalec et al., 2025).

it is worth pointing out that at one time, Russia was a big methane emitter with pipeline losses exceeding 10%. With regards to the USA, the average of 2.1% comes from a spread of 1-4%.

the average system loss of developed countries, as reported by Eurostat, is 0.5%. Several EU countries have system losses below 0.5%.

these system loss data point to one unmistakable fact, and that is Bangladesh’s gas system loss is very high.

the fact that some countries have similar high losses is no excuse to continue this bad performance. The fact that Petrobangla is being transparent by revealing the financial losses of its distribution and transmission companies is indeed praiseworthy. Moreover, they have initiated measures to reduce UFG, including disconnecting illegal connections.

the problem is monumental, and it is certainly not possible to bring down the system loss to the global average of 1.67% considering the poor state of the distribution pipelines, especially within Dhaka city, and the numerous socio-economic constraints, but a 4.0% UFG and the elimination of theft through illegal connections in the domestic sector are targets that can be set.

the future of sustainable gas supply in Bangladesh depends on reducing UFG to levels that will meet the expectations of the people.

The Anti-Corruption Commission (ACC) conducted raids at various facilities of the state-owned Jamuna Oil Company Limited in Chattogram recently, following reports of discrepancies involving 375,365 liters of diesel — a loss categorized as damage to state assets.

the daylong operation was carried out by the enforcement team of the ACC’s Chattogram District Office-1, confirmed Md Subel Ahmed, its deputy director.

the team visited the company’s Patenga terminal and its head office in Agrabad.

a three-member team led by ACC Assistant Director Sayeed Mohammad Imran conducted the raid, he added. During the operation, the ACC team visited the Patenga terminal and summoned fuel supply records from the officials concerned. Mohammad Maksudur Rahman, assistant general manager (terminal) of Jamuna Oil, handed over the relevant documents to the investigators. Preliminary examination of the records revealed that the Chattogram terminal had reported a total shortfall of around 375,000 liters of diesel sent to depots in Fatullah and Cumilla at different times

Power tariffs of half a dozen of the state-owned power plants are set to be cut years after initiation of their commercial operations, said sources.

the proposed new tariffs are expected to get approved by the Advisers Council Committee on Economic Affairs as state-run Bangladesh Power Development Board (BPDB), the lone buyer of electricity from these plants, has already negotiated down the tariff rates of these power plants, they said.

the power-purchase agreements (PPAs) between the BPDB and the relevant power plants will also be amended accordingly.

the return on investments (ROEs) of those power plants might be fixed at 6.0 per cent from existing 12 per cent and the tariff rates would also be reduced proportionately, a senior BPDB official said.

of the six power plants — four are owned by state-run Rural Power Company Ltd (RPCL) and two are owned by another state-owned BR PowerGen Ltd.

the RPCL-owned units are: 210MW Mymensingh Power Plant, 52.194MW Kodda Power Plant, 25.50MW Rowzan Power Plant and 105MW Gazipur Power Plant.

and two other plants –163MW Mirsharai Power Plant and Kodda 150MW Power Plant – are owned by BR PowerGen Ltd.

In 2010, fewer than six in ten Bangladeshis had electricity.

today, more than 99% of households are connected-a transformation that has touched every corner of life. Factories run shifts, students study under light, mothers deliver babies in powered clinics, and life expectancy has risen above 72 years. From boro rice, which is entirely irrigation-dependent, to aquaculture that relies on aeration, pumping, and cold-chains, Bangladesh’s nearuniversal electricity access has been a quiet force behind our rise from ~32 million metric tonnes to ~37 million metric tonnes of rice (milled), and from ~3.1 million metric tonnes to ~5.0 million metric tonnes of fish since 2010.

these gains in food security are as vital as the gains in manufacturing and services.

this achievement is often overshadowed by criticism of ‘capacity payments’-fees paid to power plants for being available, even when underutilized.

these payments rose to around Tk 260-280 billion annually. Yet what did the nation gain in return? Bangladesh’s economy expanded from US$115 billion in 2010 to nearly US$450 billion today. Exports tripled to US$55-58 billion annually, powered by electricityreliant industries.

almost 48 million electricity customers-homes, farms, and factories-depend daily on this reliability. Studies consistently show that electricity consumption drives GDP growth, not the other way around.

the challenge now is not to undo progress but to optimize it. Retiring costly rental units, cutting system losses, and integrating renewables could save over Tk 138 billion annually. Bangladesh ended the darkness.

the next step is efficiency-ensuring that every kilowatt we generate continues to fuel growth, dignity, and resilience

New commitments to boost renewable energy and increase access to electricity and clean cooking technologies by 2030 have brought the finance and investment pledged through the United Nations to US$ 1.6 trillion, with $284 billion already mobilized, according to the fourth edition of the Energy Compacts Annual Progress Report being released today.

the report, which is being launched at the EnergyNow SDG7 Action Forum on the margins of the UN General Assembly, shows expanding action under the Energy Compact voluntary commitments on both energy access and transition. Of the $284 billion mobilized or deployed since 2021 through the Compacts, the majority has been private sector investment in renewable power generation. The report cites figures from the 2025 Tracking SDG7 Report that over $4 trillion total investment is needed annually to reduce the ranks of 660 million people living without electricity and over 2 billion still cooking with polluting fuels, while setting the world on a climate action trajectory towards net-zero emissions by 2050 and averting ever-worsening climate impacts.

Saudi Arabia, Russia and six other key members of the OPEC+ alliance are likely to agree to raise crude output when they meet virtually, with analysts divided over the size of the expected hike.

the meeting by the group of eight oil-producing countries known as the ‘Voluntary Eight’ (V8) comes as oil prices head for weekly losses and rumors of a possible output increase of up to 500,000 barrels per day (bpd) swirl.

angered by what it dismissed as ‘wholly inaccurate and misleading’ media reports, the 12-nation Organization of the Petroleum Exporting Countries (OPEC) urged news outlets in a recent statement to ‘exercise accuracy…

in order to avoid fueling’ market speculation.

experts had initially expected a production hike of 137,000 bpd from November, which would mirror the October increase. But Commerzbank analyst Barbara Lambrecht cautioned that uncertainty remained, as ‘the group has frequently surprised markets with swift production hikes in the recent past’

Top government officials, including former power and energy state minister Nasrul Hamid, reportedly colluded with several corporate entities in Bangladesh and India to secure controversial power deals under an indemnity law during the past Awami League regime.

the national committee, commissioned to review the controversial power deals of the AL era, reportedly gathered sufficient circumstantial evidence to prosecute the corporate companies and their collaborators in an international arbitration court.

the national committee comprising five members was formed in September last year, about three months before the controversial indemnity law-Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010- was finally repealed 14 years after its promulgation.

after the repeal, the incumbent government, which replaced the past AL government in August last year following a student-led uprising, cancelled all solar projects approved under the now-defunct law but retained all fossil fuel-based projects

Many emphasized the need for a just transition that supports sustainable development, called on all countries to honor their commitments to climate finance and technology transfer, and reiterated their commitment to multilateralism.

a number of speakers underscored the role of the courts in holding countries to account, and cited the ICJ advisory opinion, affirming that countries have legally binding obligations to prevent climate harm and protect human rights.

in closing, UN Deputy Secretary-General Amina Mohammed emphasized that it is possible to limit global temperature rise to 1.5°C, but only if countries act with urgency, determination, and solidarity.

uN Secretary-General António Guterres convened the Climate Summit 2025 as a platform for country leaders to announce climate change commitments and to accelerate momentum toward the 2025 UN Climate Change Conference (UNFCCC COP 30) in November. Nearly 100 countries shared their plans for or updated nationally determined contributions (NDCs), which signal their countries’ intentions to take climate action.

in addition to announcing updated national targets for climate action, Heads of State and Government and ministers reaffirmed their support for multilateralism and science and demanded immediate action to prevent irreversible damage. During the opening segment, Scientists Johan Rockström, Director, Potsdam Institute for Climate Impact Research, and Katherine Hayhoe, Texas Tech University, provided assessments of current efforts to meet the goals of the Paris Agreement. Rockström warned that impacts associated with a temperature rise beyond 1.5°C risk crossing tipping points, leading to irreversible change. ‘The window is still there, but it’s narrow,’ he said. Hayhoe said while the science is clear, awareness does not necessarily lead to action. Saying we need to know we are not alone and there is hope, she called on leaders to ‘choose courage over fear, action over delay, and hope over despair.’ UN Secretary-General António Guterres emphasized that both science and economics compel climate action. He said COP 30 must conclude with a credible global plan to get us on track by: n supercharging the clean energy transition; n drastically cutting methane emissions; n ending the destruction of forests; n cutting emissions from heavy industry; and n ensuring climate justice. Luiz Inácio Lula da Silva, President of Brazil, said the submission of NDCs is not an option but an obligation, citing the recent advisory opinion by theInternational Court of Justice (ICJ). Xi Jinping, President of China, announced his country’s new NDC, which aims to, inter alia: reduce its economy-wide net GHG emissions by 7-10% from peak levels by 2035; increase the share of nonfossil fuels in total energy consumption to over 30%; expand installed capacity of wind and solar power to over six times the 2020 levels; scale up total forest stock volume; expand national carbon emissions trading market to cover major sectors; and establish ‘a climate adaptive society.’ Ursula von der Leyen, President of the European Commission, announced the EU will formally submit its new NDC ahead of COP 30, said the emissions reduction target would be between 66% and 72%, described work on a 2040 target of 90% emissions reduction to reach climate neutrality by 2050, and outlined the EU’s efforts in the areas of global partnerships and climate finance. Mia Mottley, Prime Minister of Barbados, called for using innovative financial instruments to implement NDCs and for a legally binding agreement on methane that could be based on the Montreal Protocol. Many emphasized the need for a just transition that supports sustainable development, called on all countries to honor their commitments to climate finance and technology transfer, and reiterated their commitment to multilateralism.

a number of speakers underscored the role of the courts in holding countries to account, and cited the ICJ advisory opinion, affirming that countries have legally binding obligations to prevent climate harm and protect human rights.

in closing, UN Deputy Secretary-General Amina Mohammed emphasized that it is possible to limit global temperature rise to 1.5°C, but only if countries act with urgency, determination, and solidarity.

the Climate Summit 2025 took place on 24 September, during the High-Level Week of the 80th session of the UN General Assembly (UNGA).

tackling Climate, Sustainable Development Crises Together Could Cut Costs by 40%: Report A report issued by a UN-convened expert group finds that tackling the climate and sustainable development crises together could unlock efficiencies at scale and reduce government spending needed to address these crises by nearly 40 percent. Harnessing Climate and SDG Synergy: Quantifying the Benefits, the third global report prepared by the independent Expert Group on Climate and SDG Synergy, was launched today ahead of the Climate Summit during the UN General Assembly High-Level Week, at a time when progress towards achieving climate targets under the Paris Agreement and the Sustainable Development Goals (SDGs) is far off track.

the finance gap for SDG action exceeds USD 4 trillion annually, and over USD 6 trillion annually for climate action. ‘The climate and development crises are not separate – they are deeply interconnected, and so must be their solutions,’ UN Under-Secretary-General for Economic and Social Affairs Li Junhua and Executive Secretary of UNFCCC Simon Stiell stated jointly in the preface of the report, representing the two agencies that co-convene the expert group. Declaring that the report shows that ‘we have the solutions and roadmap’ for a more integrated approach, they issued a call for cooperation across ministries and sectors – for a whole-of-society approach. ‘Let us seize this moment of opportunity for transformative change, for people and planet,’ they concluded.

the expert report comes at a crucial time: 2025 presents a critical window to maximize the potential of synergistic action, as countries prepare new national climate commitments under the Paris Agreement, some of which are being announced at the Climate Summit.

these Nationally Determined Contributions (NDCs) can be a key mechanism, the report states, to align climate action with sustainable development and the SDGs. Citing two examples of co-benefits, the report urges that NDCs should include action on biodiversity and recognize the positive health impacts in cities of reducing emissions and air pollution.

the report suggests that tailoring synergistic strategies to country-specific development and climate objectives ensures that investments are targeted where they are needed most, and that climate action delivers multiple social, economic, and environmental benefits. Currently, ‘fragmentation across governance, finance and policy continues to hinder progress,’ the report states, ‘necessitating reforms for effective and inclusive action.’ Stating that private sector investment is vital, the report makes the argument that by aligning incentives, demonstrating economic value, and reducing risk through synergistic action, governments can leverage private funding to magnify the impacts. Growing Evidence The report’s conclusions are based on statistical modelling, using the cost of meeting the greenhouse gas emission reduction objective of fulfilling all NDCs as well as achieving certain development targets measured by the Human Development Index. By contrast, synergistic allocation of funds could reduce total government spending by up to 37 percent, according to the modelling. The expert group intends to broaden the analysis in future reports to add other benefits, including social values such as lives saved.

the report expands the growing body of evidence on the clear benefits of synergistic policies and action, building on the expert group’s global reports over the past two years, as well as detailed thematic reports examining specific synergies that can yield major impact.

it cites examples showing that: n Nature-based climate solutions such as conserving biodiversity and restoring ecosystems could deliver up to 37 percent of cost-effective CO2 mitigation by 2030; n City policies such as fossil-fuel phaseout, and encouraging cycling and walking as well as plant-based diets can deliver major co-benefits for climate and health; and n Integrating disaster insurance into development plans can boost resilience, considering that in Africa, only 0.5 percent of disaster losses are insured, and each 1.0 percent rise in coverage brings countries 5.8 percent closer to achieving the SDGs. Political momentum on climate and SDG synergies has been building, including through annual conferences, with increasing recognition of the need to break down the silos that are holding back progress urgently needed.

the recommendations in the report will continue to be advanced in various forums, including at Climate COP30 coming up in Brazil in November.

the 17-member expert group, drawn from diverse backgrounds and research institutions, is co-led by Luis Gomez Echeverri (International Institute for Applied Systems Analysis) and Heidi Hackmann (CREST, Stellenbosch University).