DESCO Back in Pro?t in Q1 on Increased Distribution Margin

Dhaka Electric Supply Company (DESCO) secured a profit of Tk 583 million in the first quarter through September this year, marking a strong turnaround from a loss of Tk 322 million in the same quarter last year. Higher distribution revenue and foreign exchange gains due to favorable exchange rates are two key reasons behind the significant improvement in the business of DESCO, according to the company’s earnings note. DESCO, which distributes electricity to the capital’s western and north-eastern areas, gained Tk 282 million in foreign exchange transactions in the quarter to September this year, whereas it endured a loss of Tk 713 million in this segment during the same period last year. Revenue, particularly from supply of electricity, rose 6.6 per cent year-on-year to Tk 22.74 billion in JulySeptember, according to unaudited financial statements published recently.

the company’s distribution margin increased in February this year-from Tk 7.02 to Tk 12.82-for every Tk 100 worth of power distributed.

DoE Shuts Illegal Brick Kilns, Fines TK 18 Lakh in Savar

The Department of Environment (DoE) recently conducted a special enforcement drive in Savar Upazila to curb air pollution and implement the degraded air shed declaration, shutting down several illegal brick kilns and realizing fines amounting to TK 18 lakh.

the operation was carried out jointly by the DoE’s Dhaka District Office and the Monitoring and Enforcement Wing of its Headquarters. During the drive, the Messrs ABM and Co. brick kiln at Mushurikhola under Tetuljhora union in Savar was found operating illegally. The team demolished its chimney, crushed unbaked bricks, disconnected the power supply, and fined the owner TK 600,000 on the spot.

in similar drives, two more kilns-ABN Bricks at Shyamlasi in Bhakurta union and HMB Star Bricks at Chapra-were also found operating illegally. Their chimneys were dismantled; operations stopped, and fined TK 600,000 each. Another kiln, Messrs MHS Bricks, located in Chapra, was also demolished, its operations halted, and its power supply disconnected.

Jamuna Oil’s Pro?t Hits All-Time High on Margin Hike, Interest Gains

Jamuna Oil Company earned a record profit of Tk 6.48 billion in FY25, supported by higher sales margins and substantial income from bank deposits.

the state-run oil distributor registered a 47 per cent year-on-year growth in profit for the year ended in June this year, according to a recent stock exchange filing.

the government raised the margin on fuel sales by 60 per cent to Tk 0.80 per liter for the three state-owned oil marketing companies, including Jamuna Oil, while the margin on octane and petrol rose by 50 per cent to Tk 0.90 per liter in March last year.

the record profit prompted the company to declare its highest-ever cash dividend – 180 per cent – for FY25, up from 150 per cent paid for the previous year.

investors will receive Tk 18 per share from the yearly income of Tk 58.70 per share, meaning the company will distribute only one-third of its profit as cash dividends to shareholders for the year. Due to higher dividend declaration, its dividend yields estimated to be a record high of 9.57 per cent for the year.

India’s Modi Expands Energy Ties with Bhutan

India and Bhutan expanded their energy ties recently during Prime Minister Narendra Modi’s visit to the Himalayan nation, where he extended a 40 billion rupee (£455 million) line of credit and inaugurated a hydroelectric power project.

india’s outreach to Bhutan is seen as an effort to grow its influence in the region and draw the country wedged between China and India closer to New Delhi as Beijing steps up its engagement to resolve a long-running border dispute with Bhutan and establish diplomatic relations. Modi was on a two-day visit to the country and addressed a gathering to mark the birthday celebrations of Bhutan’s King Jigme Khesar Namgyel Wangchuck’s father. ‘The partnership of trust and development between India and Bhutan stands as a model for the entire region,’ he said.

EU Moves to Bar ‘Green’ Labels for Fossil Fuel Investments

The European Commission said recently it wants to exclude companies involved in fossil fuels from financial products marketed as ‘sustainable’ in the EU, a step long demanded by environmental groups and experts. The move is part of EU proposals to revise the bloc’s Sustainable Finance Disclosure Regulation (SFDR), introduced in 2021 to steer savers toward greener investments through a classification system for funds. NGOs and experts had urged the EU executive in late September to overhaul what they called an overly vague and permissive framework, insisting at minimum that firms expanding fossil fuel activities be excluded. The commission proposal appears to answer that call, by acknowledging that the current system could mislead investors and proposing a stricter threetier classification as part of efforts to curb ‘greenwashing.’ The first category, billed as ‘sustainable,’ would automatically exclude investments in companies ‘active in fossil fuels or highemitting energy activities, or expanding their fossil fuel activities,’ according to a statement.

Energy Transition Must Support, Not Undermine, Bangladesh’s Industrial Future

Civil society plays an important role in shaping public opinion on climate action and energy transition. But their advocacy must also reflect global and domestic realities.

otherwise, wellintentioned pressure could harm the country’s i n d u s t r i a l i z a t i o n and employment prospects. Given current technological and financial constraints, the idea of Bangladesh reaching 100% renewable energy by 2050 is unrealistic.

in an interview with Energy and Power Editor Mollah Amzad Hossain, economist and Policy Exchange Bangladesh Founder-Chairman Dr. M. Masrur Reaz shared his insights. Opportunities for global financing for climate impacts are shrinking. Developed and emerging economies are showing little interest in climate finance.

the absence of concrete finance decisions at COP30 reflects this. How do you interpret it? COP Belém was described as an ‘action COP.’ Yet, even there, no concrete decision was made to ensure financing for previously agreed commitments.

this isn’t very reassuring. While developed countries show some interest in mitigation investments, they remain largely unwilling to finance adaptation or loss and damage payments.

the main reason is the current trajectory of global politics.

this lack of commitment is not unique to climate summits-almost all major global forums are now ending without concrete outcomes.

the United States once played a strong leadership role in strengthening climate action, but that has reversed.

after the recent change in administration, climate change and net-zero goals no longer hold priority. When the U.S. stops emphasizing climate action, the global community also loses enthusiasm for fulfilling commitments.

another geopolitical factor is the stance of oil-rich countries-not only in the Middle East but also in the United States and Russia. Russia, despite sanctions, remains a major oil producer.

if a peace deal between Russia and Ukraine emerges, Russian oil could re-enter the global market.

thus, maintaining the current fossil fuel dependency aligns with the interests of Middle Eastern countries, the U.S., and Russia.

industrial lobbies also play a role, such as the automobile industries of the U.S. and Japan, and the industrial equipment sectors.

achieving net zero would require them to overhaul production systems completely, which is a massive challenge. They prefer technological upgrades that reduce pollution rather than reducing fossil fuel use itself. Countries of the Global South, like Bangladesh, will face the most severe climate impacts. So developing nations must stand united. But in global forums, climate-vulnerable countries have not been able to form a unified platform. Bangladesh has announced in NDC 3.0 that it will reduce 85 million tonnes of carbon emissions by 2035, although it is not legally obligated.

this requires USD 116 billion-USD 90 billion from global support and USD 26 billion domestic investment. Your assessment? Undoubtedly, this is a strong commitment from Bangladesh. But raising USD 26 billion domestically over 10 years, about USD 2.6 billion per year, is extremely difficult.

our public finances are under significant strain. Revenue collection is weak. Internal borrowing keeps rising.

in hindsight, heavy reliance on foreign loans for mega projects was unwise.

even now, the government is compelled to borrow from banks and external lenders because revenue generation is insufficient. Bangladesh’s GDP-to-revenue ratio is below 8%, one of the lowest in the worldIn that context, allocating USD 2.6 billion annually, about 4-5% of the national budget, for emission reduction will be very challenging.

therefore, Bangladesh must rely on global concessional financing and grants. Secondly, both mitigation and adaptation require boosting private capital investment.

this would reduce pressure on the government. But global financial flows are tightening. So Bangladesh must prepare transparent and efficient project designs and implementation strategies to attract funding.

this will not be easy.

the World Bank recently published a report on climate risks for Bangladesh and other Asian countries.

it says 90% of people in this region will face extreme heat risks.

in 250 coastal villages of Bangladesh, 57% of households face disaster vulnerability.

investment is essential to overcome this. But where will the money come from? Such studies by international institutions are crucial for us because Bangladesh lacks the capacity to conduct these assessments effectively, whereas the World Bank does not.

in the future, we must also rely on the expertise of the World Bank, ADB, and other global organizations.

their data will help Bangladesh design effective strategies for addressing climate risks.

the government of Bangladesh is quite active on climate issues. However, there remains a question about how systematic this approach truly is.

in Bangladesh, awareness is being raised, and pressure is being exerted on the government to take initiatives to manage climate impacts and drive energy transition. How do you view this? Such efforts by civil society are certainly commendable. Continuous dialogue between civil society and the government is essential for formulating policies and strategies on climate resilience and energy transition. However, environmental groups and civil society must remember that their pressure should not push the government into adopting policies that could hinder economic growth. Government decisions must consider global and domestic politics, the economy, and social realities. Bangladesh aims to become a highincome country. For that, an affordable and secure energy supply is crucial. But transitioning away from fossil fuels will likely increase costs and require new investment. Civil society argues that if Bangladesh becomes 100% renewable by 2050, energy costs will drop significantly. What is your view? Look, Bangladesh is not in a position to transition entirely to renewable energy, especially 100%, by 2050.

if we try to do that hastily, energy costs will rise, and supply shortages may occur.

every year, 2.2 million people enter the job market. Unemployment and underemployment are high. We are also an importdependent country. So industrialization and job creation are essential for the future. Development must continue through employment generation. For industrialization, manufacturing, and exports, electricity and energy are indispensable. Without energy security, not only will expansion be impossible, but even retaining current progress will be difficult.

of course, it would be great if we could fully shift to renewables quickly -but is that realistic? The second issue is feasibility. Many countries have done it; maybe we can too. But do we have the time, technology, and finance required? Considering Bangladesh’s current condition, I see no possibility of reaching 15% renewable energy in the next 10 years. Currently, only 2% of our energy comes from renewables.

our renewable resource base is limited. For solar, land scarcity is a major constraint.

in this context, expecting a 100% renewable transition by 2050 is not realistic. Bangladesh has limited fossil fuel reserves, but further exploration is needed. For affordable energy, maximum use of domestic coal and gas is necessary. Environmental groups oppose new fossil fuel investments. What is your position? Our coal and gas resources are not infinite. Yet even the resources we have were not properly explored or extracted. As a result, the country is now 55% dependent on imported energy and electricity, which has led to higher prices. So, maximizing the use of domestic coal and gas is essential. For that, alongside domestic investments, the right policies and strategies must be adopted to attract foreign investment.

investment in oil, gas, and coal is risky. Advanced technologies are also beyond our reach.

therefore, for developing and utilizing our own energy resources, domestic and foreign investment must move forward together. Bangladesh’s largest export sector is textiles and ready-made garments. Buyers are putting increasing pressure to reduce carbon footprints.

over 200 LEED-certified factories already exist, and many industries are investing in energy transition and efficiency. But they are not getting higher prices. What steps could secure better pricing from global buyers? I’ve discussed this with buyers.

they argue that environmental and sustainable production must include human rights compliance.

that is basic-it should already be part of production. So why pay extra for what is fundamental? Extra payment is justified for quality or value addition.

their reasoning may be an excuse or might be genuine.

the problem is that the export sector is very sensitive.

export-oriented industries, particularly garments-which make up about 84% of exports-are extremely labor-intensive.

each factory employs thousands.

overhead costs and monthly payroll are heavy. Non-payment leads to unrest and many issues. So entrepreneurs are under constant pressure to keep factories running at any cost. This weakens their negotiating power. Business operating costs are also high.

exporters could unite under BGMEA or BKMEA to collectively present their value-added case. Prices are ultimately determined by value addition. Second, they must remain united and develop a common industry position.

third, the government should take diplomatic initiatives.

although this is a private-to-private matter, governments can still engage in strategic dialogue. How do you assess Bangladesh’s domestic investment capacity for energy transition, especially renewable expansion and energy efficiency? Can we meet the demand without foreign investment? Bangladesh, either through the government or the domestic private sector, does not have the sole financial capacity to transition from the conventional energy system. To move forward, we must attract global multilateral and bilateral investment.

the government should actively seek foreign private investment. For ensuring energy transition, there is no alternative. However, we have not yet been able to create a strong environment of investor confidence.

New Fertilizer Factory Planned in Bhola to Utilize Local Gas Industries adviser

Industries Adviser Adilur Rahman Khan has said the government plans to establish a modern urea fertilizer factory in Bhola to utilize the district’s large gas reserves. Speaking to reporters after inspecting two proposed sites near Ferighat in Bhola Sadar upazila recently, he said a feasibility study for the project is already underway. ‘There is a huge amount of gas in Bhola. No other district in the country has such a large reserve,’ he said. ‘We want to use this gas for national development and for strengthening the agriculture sector.’ Adilur said if the feasibility study yields positive results, the government will move forward with the project without delay. He also noted land acquisition is unlikely to be necessary, which would significantly reduce both project costs and implementation time. Power, Energy and Mineral Resources Adviser Mohammad Fouzul Kabir Khan and Commerce, Textiles and Jute Adviser Sheikh Bashir Uddin accompanied him during the visit.

IDCOL Wins Asian Power Awards 2025

Infrastructure Development Company Limited (IDCOL) has been named ‘Solar Power Project of the Year – Bangladesh’ winner at the Asian Power Awards 2025, which celebrated regional energy leaders at an awards dinner held on 23 October 2025 in Kuala Lumpur, Malaysia.

the distinction recognizes IDCOL’s role in co-financing the 68 MW (AC) Sirajganj Solar Power Project developed by Bangladesh-China Renewable Energy Company Limited (BCREL). Under a 20-year PPA with BPDB, the project supplies clean power to the national grid; IDCOL’s financing commitment is up to US$55 million via a syndicated arrangement.

the Sirajganj plant is engineered for climate resilience, featuring elevated substation and operating zones (16 m above mean sea level), perimeter embankments, and resilient pile structures, and is projected to avoid ~73,835 tCO2e annually. Built on 214 acres of previously barren land, the project complied with World Bank ESS, AIIB ESF, and IDCOL ESSF; the developer undertook stakeholder consultations, fair compensation for transmission-line impacts, and a 3:1 compensatory tree-planting commitment. Mr.

alamgir Morshed, Executive Director and CEO of IDCOL, said: ‘This award is a testament to our partners and clients who are accelerating Bangladesh’s energy transition. Financing Sirajganj shows how robust structuring and high EandS standards can bring affordable, reliable clean power to the grid while building climate resilience.’

Must Commit to Climate-Resilient Energy Future, CSOs Urge Parties

As the country Research at COP30 moves toward the pivotal 2026 national elections, a coalition of prominent civil society organizations recently urged political parties to adopt bold, futurefocused commitments to dismantle fossil fuel dependence, enhance national energy sovereignty and safeguard vulnerable communities through a just, equitable and climate-resilient energy transition.

the coalition released a 12-point Citizens’ Manifesto at a press conference at Dhaka Reporters’ Unity, calling on parties to commit to a transparent and renewable energy-based power sector. ‘Despite attaining almost 100 percent electricity coverage, decades of imprudent fossil fuel dependence, opaque contractual regimes and impractical master plans have precipitated severe financial haemorrhaging, intensified environmental degradation and heightened public health risks,’ said Monower Mostafa, adviser at Coastal Livelihood and Environmental Action Network, while presenting the keynote paper.

Loan-Heavy Climate Finance is Pushing Frontline Nations Toward a Debt Trap: New Analysis

Change Initiative r e c e n t l y disseminated the Climate Debt Risk Index 2025 (CDRI’25) jointly with Young Power in Social Action (YPSA), finding that loan-dominant climate finance, slow cash delivery, and high exposure to climate shocks are combining to raise debt risks across dozens of low-income and climate-vulnerable countries. The index covers 55 nations: 13 are rated ‘very high risk,’ 34 ‘high,’ 6 ‘moderate,’ and 2 ‘low.’ Sahel states and parts of coastal West Africa face frequent disasters, several small island states carry heavy per-capita burdens, and South Asia shows uneven portfolios with large loan shares in some economies. CDRI’25 integrates finance structure, climate exposure, debt indicators, poverty, income, credit ratings and naturalresource stewardship into a 0-100 score, with 2028/2031 projections using governance trends across 55 countries. CDRI’25 findings were addressed by Sabrin Sultana and Samira Basher, research analysts of Change Initiative.