Category: Energy and Power

Asia’s liquefi ed natural gas (LNG) market is showing signs of recovery after months of disruption caused by the Iran conflict and supply interruptions through the Strait of Hormuz.

Renewed buying by China, the world’s largest LNG importer, has helped lift regional demand, signaling improved market confi dence.

According to commodity analytics fi rm Kpler, Asia is expected to import around 21.8 million tonnes of LNG in June, the highest monthly volume in fi ve months and slightly above the level recorded a year earlier.

The rebound follows a sharp decline in April, when LNG imports fell to a six-year low after supply disruptions from Qatar tightened global availability.

China has resumed spot LNG purchases as prices eased from the record highs seen during the peak of the Middle East crisis.

Japan has also increased imports to meet summer electricity demand, while India is diversifying supplies through imports from the United States, Nigeria and Angola to reduce dependence on Qatar.

Despite steady progress in renewable energy deployment, 655 million people worldwide still lacked access to electricity in 2024, while nearly 2 billion people continued to rely on polluting fuels and technologies for cooking, according to the latest Tracking SDG 7: The Energy Progress Report.

The report warns that the world is not on track to achieve Sustainable Development Goal (SDG) 7 on universal access to affordable, reliable and sustainable energy by 2030.

Electrifi cation efforts, particularly in Sub-Saharan Africa, must triple to meet the target, as the region accounts for more than 560 million people without electricity.

Renewable energy continued to expand, supplying over 30% of global electricity, while global renewable generation capacity reached a record high.

However, progress in energy effi ciency and clean energy fi nancing remains insuffi cient.

International public fi nance for clean energy in developing countries increased only marginally to US$24.6 billion in 2024, with funding for the least developed countries declining

Coal is regaining importance as an alternative fuel across Asia as countries respond to oil supply disruptions linked to tensions in the Middle East and restrictions on shipping through the Strait of Hormuz.

According to industry executives, China has signifi cantly increased coal stockpiling while also expanding coalto-chemicals production to reduce dependence on imported crude oil.

The shift reflects growing concerns over energy security and volatile oil markets.

Rising demand is also supporting global coal trade and dry bulk shipping activity.

Shipping industry offi cials warn that higher fuel costs and longer shipping routes, driven by security risks in the Red Sea and Gulf region, are pushing up freight rates for coal and other bulk commodities

Bangladesh’s transition toward electric mobility is taking shape as more than an environmental initiative, with the government positioning the electric vehicle (EV) sector at the center of a broader strategy to strengthen energy security, reduce dependence on imported petroleum and promote sustainable industrialization.

The National Budget for Fiscal Year 2026-27 (FY27) and the Bangladesh Climate Budget Report 2026-27 outline a series of tax reductions and incentives designed to accelerate the adoption of environmentally friendly transportation while supporting the growth of a domestic EV ecosystem.

The move comes against the backdrop of Bangladesh’s heavy reliance on imported energy.

According to the budget documents, the country currently imports approximately 95 percent of its petroleum requirements, making fuel dependency a signifi cant national concern.

Bangladesh’s energy regulator is considering a reduction in wholesale electricity tariffs after reversing planned price hikes for low-income households, as state-run distributors warn of substantial revenue losses.

The Bangladesh Energy Regulatory Commission (BERC) is expected to take a decision soon, although offi cials say the scale of any reduction remains under review.

The move follows BERC’s 3 June announcement raising both wholesale and retail electricity prices.

However, within a day, the regulator partially rolled back the decision, retaining previous tariff rates for residential consumers using up to 50 units under the lifeline category and up to 75 units under the fi rst consumption slab.

Offi cials estimate that the rollback could reduce the combined revenues of distribution companies by around Tk2,300 crore.

The Bangladesh Rural Electrifi cation Board (BREB), which serves the largest number of consumers, is likely to bear the brunt, with projected losses of about Tk1,780 crore.

Calls to hold fossil fuel companies fi nancially accountable for climate damage are gaining global momentum, with campaigners, journalists and civil society leaders urging governments to make major polluters contribute more to climate action and recovery.

Speaking at a ‘Make Polluters Pay’ event during London Climate Action Week, representatives from climate organizations highlighted growing support for measures such as windfall taxes on oil and gas profi ts, closing tax loopholes, and expanding climate litigation against fossil fuel companies.

The event was organized by 350.org and Stamp Out Poverty and chaired by Climate Home News journalist Megan Rowling.

Participants argued that while climaterelated disasters and energy price volatility continue to affect households and vulnerable communities, many fossil fuel companies have continued to report substantial profi ts.

According to 350.org’s Out of Pocket report, an estimated US$12 trillion flows annually to the fossil fuel industry through subsidies, tax incentives and unaccounted climate damages-far exceeding current global climate fi nance.

Speakers said recent developments, including climate superfund laws in parts of the United States, windfall taxes in Europe, and climate-related legal cases in several countries, reflect a growing international effort to strengthen corporate accountability for emissions and climate impacts.

Campaigners also stressed that revenues generated through such measures could help fi nance clean energy deployment, climate adaptation, and resilience-building in developing countries and vulnerable communities.

They emphasized that communities most affected by climate change often contribute the least to global emissions but bear the greatest social and economic costs.

The discussion concluded that making major polluters contribute to climate solutions is increasingly becoming part of mainstream policy debates, with advocates calling for stronger international action to ensure climate fi nance supports a just and equitable energy transition

Finnish technology company Wärtsilä has successfully demonstrated what it describes as the world’s fi rst large-scale engine operating entirely on 100% hydrogen, supplying electricity to Spain’s national grid from its test facility in Bermeo.

The milestone marks a signifi cant advance in hydrogen-based power generation, proving that large engine systems can run exclusively on hydrogen under real grid conditions.

The demonstration features Wärtsilä’s 31H2 engine, which is currently undergoing performance validation.

According to the company, the hydrogen-powered engine is designed to provide flexible, dispatchable electricity that can help balance intermittent renewable energy sources such as wind and solar.

Green hydrogen also offers long-duration energy storage while producing no carbon emissions at the point of use

Bangladesh needs policy reforms, lower taxes and duties, and easier access to fi nancing to accelerate the growth of its renewable energy sector, experts said, adding that Pakistan’s recent ‘solar revolution’ offers valuable lessons for expanding rooftop solar and distributed power generation in Bangladesh.

The observations were made at a dialogue titled ‘Pakistan’s Solar Revolution: Lessons for Bangladesh from a National Budget Perspective,’ organized by the Centre for Policy Dialogue (CPD) at a hotel in the capital recently.

Speakers at the event said Bangladesh has already made a political commitment to transition towards renewable energy, which is a positive development.

However, signifi cant structural and institutional challenges continue to hinder effective implementation.

CPD Research Director Dr.

Khandaker Golam Moazzem said Pakistan’s rapid expansion of solar power had transformed the country’s electricity sector within a short period.

‘Bangladesh can also reduce its dependence on fossil fuels and make more effective use of renewable energy resources,’ he said.

The Centre for Policy Dialogue (CPD) has welcomed several renewable energy incentives proposed in Bangladesh’s FY2026-27 national budget but cautioned that continued fi scal advantages for fossil fuels could undermine the country’s long-term energy transition goals.

CPD Senior Research Associate Helen Mashiyat Preoty presented these observations in a paper titled ‘Proposed National Budget for FY2026-27: What is There for the Power and Energy Sector?’ at a discussion held at the organization’s Dhanmondi offi ce on Wednesday.

The session was chaired by CPD Research Director Khondaker Golam Moazzem.

The proposed budget allocates Tk 17,345 crore to the Ministry of Power, Energy and Mineral Resources, representing a modest 2.3% increase from the revised FY2025-26 budget.

Of this amount, Tk 17,193 crore is allocated for development expenditure, while Tk 152 crore is designated for operational expenditure, which has increased by 7.8%.

However, CPD highlighted a concerning long-term trend: the ministry’s share of the national budget has steadily declined from 6.87% in FY2015-16 to 1.85% in FY2026-27.

The Power Division received Tk 14,996 crore, a 3.9% decrease from the revised allocation, while the Energy and Mineral Resources Division saw a signifi cant 72% increase to Tk 2,349 crore, mainly due to higher development spending.

The United Nations has unveiled preliminary proposals under its UN80 reform initiative to strengthen global environmental governance by improving coordination across climate, biodiversity, and sustainable development efforts.

A draft assessment, jointly led by the UN Framework Convention on Climate Change (UNFCCC) and the UN Environment Programme (UNEP), identifi es fragmentation in environmental science, governance, and implementation, while recommending closer cooperation among UN agencies and multilateral environmental agreements.

The report also proposes enhancing the role of the UN Environment Assembly (UNEA), strengthening coordination mechanisms, and introducing AI-enabled support centers to help countries implement environmental commitments more effectively.

It emphasizes greater policy coherence, improved access to fi nancing, and stronger engagement with the private sector to accelerate sustainable development