Chief Adviser Muhammad Yunus, Chief Adviser of the interim government has emphasised that most climate-vulnerable countries with limited decarbonisation capacity require substantial financial and technological assistance to develop their green industries.
Addressing a high-level meeting of Climate Club leaders organised by Germany and Chile in Baku, Azerbaijan on Tuesday (12 November), he expressed Bangladesh’s willingness to collaborate with the Climate Club, leveraging international cooperation in capacity building, technology transfer, and concessional decarbonisation finance.
Dr Yunus highlighted the necessity of extensive international actions to reduce greenhouse gas emissions more rapidly and sustainably.
He reiterated the need to limit global warming to 1.5 degrees Celsius, requiring a 43% reduction in global emissions by 2030 and achieving net-zero emissions by 2050.
The chief adviser called for proven low-emission technologies to be showcased and installed, particularly in emerging markets and developing economies.
Dr Yunus pointed out that many decarbonisation technologies necessitate significant upfront investments, posing a barrier for industries in countries with limited financial resources, such as Bangladesh.
To encourage industrial decarbonisation in emerging economies like Bangladesh, Dr Yunus underscored the importance of developing financial mechanisms to facilitate concessional finance for private sector industries.
He also stressed the need for international cooperation, capacity building, and technology transfer under Article 6.8 of the Paris Agreement.
The Nobel Laureate advocated for international agreements on carbon pricing or border adjustments to create a level playing field by imposing balanced carbon costs on imports.
He argued that special and preferential measures are necessary for Least Developed Countries (LDCs), given their unique circumstances and developmental needs.
Addressing industrial decarbonisation, Dr Yunus remarked that global carbon emissions could hinder the incentives for low-carbon technology innovations as certain sectors might prioritise cost over sustainable practices. He emphasised the necessity of policies like carbon border adjustments and international collaboration to balance decarbonisation efforts with economic stability.
Dr Yunus warned that these policies could impact the competitiveness of companies in vulnerable developing nations, such as Bangladesh, due to higher production costs associated with stringent emissions regulations.
"Special and preferential measures tailored to LDCs are essential to address these unique needs and challenges," he said.
He also highlighted that fragmented and overly ambitious mitigation policies risk shifting industrial activities to regions with either no carbon pricing policies or less stringent ones, leading to increased emissions and hindering the global goal of reducing carbon output.
Dr Yunus further noted that the EU-proposed Carbon Border Adjustment Mechanism (CBAM) indirectly applies emissions standards to exported goods and encourages countries to strengthen their climate policies by curbing carbon emissions.
Concluding his remarks, Dr Yunus called for international cooperation to support equitable and inclusive transitions, stimulate economic growth, and create new employment opportunities in emerging markets.
