(Photo by International Monetary Fund via Flickr/CC BY-NC-ND 2.0)
Note: Portions of the included interview have been edited for brevity and clarity.
Bangladesh is no stranger to the rising wave of global youth protests. After 15 years of widespread corruption, unfair elections, and crackdowns on free speech and dissent, the country reached a breaking point.
In July and August 2024, hundreds of thousands of protestors marched to the beat of fury, their chants shaking the streets of Bangladesh. Ultimately, they had one demand: the resignation of Prime Minister Sheikh Hasina. On August 5th, Hasina and her allies fled Bangladesh and sought shelter in India. Three days after the country’s “second liberation,” Dr. Muhammad Yunus, the country’s only Nobel laureate, was sworn in as the Chief Adviser of an interim government.
Dr. Yunus has the mammoth task of rebuilding the country’s economy, restoring peace, and fixing its democratic future. Yet, amid these urgent priorities, the interim government is also responsible for maintaining momentum on climate action, as Bangladesh is one of the most vulnerable countries to climate change. The cancellation of over 100 USAID projects, valued at approximately $550 million, further heightens the problem.
The Green Progress So Far
Dr. Yunus coined the Three Zero theory, which includes achieving zero poverty, zero unemployment and zero net carbon emissions worldwide. Therefore, it is no surprise that his government is trying to implement the Three Zero theory in Bangladesh. While the World Health Organization deems clean air a basic human right, Bangladesh has one of the world’s worst air quality, with 78 micrograms of pollutants per cubic meter. In December 2024, the interim government announced the formation of a task force to improve the country’s environmental quality, responsible for both identifying sources of pollution and implementing a coordinated response from various levels of government.
The interim government is also highlighting climate action issues on a global level. Dr. Yunus has boldly called out the unequal impact of greenhouse gas emissions and climate change on the most vulnerable communities. They contribute the least to total emissions. For example, low-income countries face many interconnected challenges. These include exposure to air pollution, food and water scarcity, loss of land due to rising sea levels and resulting displacement of climate refugees.
During COP29, world leaders promised an extra $300 billion to help developing countries fight climate change. Bangladesh deserves a fair share of this money. However, the country still hasn’t received much climate funding. According to Dr. Yunus, asking for climate funding is “humiliating” for poor countries, as this is not just their problem to fix.
The Road to Renewable Energy
Bangladesh’s heavy reliance on gas and coal, which contribute significantly to global warming, worsens its growing climate crisis. Liquefied natural gas alone makes up 60% of the country’s primary energy use. Over-reliance on non-renewable resources not only harms the environment but also leaves the country vulnerable to global fuel price shocks—an issue made worse by the war in Ukraine. As one of the world’s fastest-growing economies, Bangladesh faces increasing pressure to move toward cleaner, more sustainable energy solutions.
The underdeveloped renewable energy sector, which accounts for just 4.5% of the country’s energy production, has also been facing scaling challenges. According to the Institute for Energy Economics & Financial Analysis, Bangladesh’s “renewable energy policy expired in 2021” and the country is preparing a new policy with new goals for the next five years.
The interim government is at a crossroads since it seeks to correct the previous government’s corruption and inefficient planning while encouraging clean electricity generation. The government “granted a 15-year tax benefit for investments to establish grid-tied renewable energy-based power facilities, with a 10-year exemption to encourage the bidders.” However, it also cancelled over 1,000-megawatt renewable energy projects, as they had been allowed without bidding under the Hasina regime. This is decreasing investor confidence and might prolong the country’s energy crisis for longer than expected.
Further, the ongoing political and economic instability has delayed the completion of the Rooppur nuclear power plant by 2 years, pushing the deadline to 2027. The delay is also in part due to an inquiry into allegations of corruption, embezzlement and money laundering to the tune of $5 billion by Hasina and her family.
According to Dr Abdullah Shibli, Senior Research Fellow at the International Sustainable Development Institute (ISDI), the private sector is just starting to get involved, especially in climate adaptation. Bangladesh also needs to raise more money within the country to help pay for climate action and other important needs, like improving education and job skills.
USAID Walks, Climate Suffers
The U.S. Agency for International Development (USAID) channels funding toward global initiatives that align with the country’s broader foreign policy goals, playing a key role alongside diplomacy and defence in promoting stability, development, and international cooperation. From 2014 to 2023, Bangladesh has received $3.2 billion U.S. dollars in aid in sectors such as humanitarian, agriculture, governance, education, health, and infrastructure. However, under Trump’s “America First” policies, 92% of USAID foreign aid contracts have been suspended or downscaled since February.
The Rohingyas have received most of the media coverage on USAID cuts in Bangladesh. They are a stateless group, many of whom fled to Bangladesh to escape persecution in Myanmar. The USAID suspension of $8.8m in aid has diminished food support, access to reproductive health, gender-based violence protection, and maternal care.
While the scale of USAID’s cuts to Rohingya aid has rightly drawn widespread attention, most media and public scrutiny have largely ignored the sweeping suspension of climate-related development programs across Bangladesh. These underreported cuts jeopardize long-term resilience efforts for millions living on the frontlines of climate change.
Pause the Future?
One critical project that USAID suspended includes the Feed the Future Bangladesh Climate Smart Agriculture Project. Initially on a timeline of 2023–2028, this project’s goal was to support climate-resilient farming by helping farmers adopt sustainable, diverse, and inclusive agricultural practices. Its expected results included supporting 230,000 people “to improve resilience to climate change” and investing in climate-smart agriculture technologies to be used by 900,00 farmers.
According to a World Bank report, the country’s “agricultural GDP is projected to be 3.1 percent lower each year due to climate change [which is] equivalent to US$570 million overall lost each year due to climate change.” Given these statistics, the suspension of food security projects may prove deadly for the country of 171 million.
Spheres of Influence had the privilege of speaking with Muntasir Saqib, Country Director of the International Fertilizer Development Center, on the suspension of the Feed the Future Bangladesh Climate Smart Agriculture Project. He mentioned that due to USAID guidelines, the project team is limited in what they can publicly share, but the suspension has had clear repercussions. The team had to redirect a lot of their equipment to partner organizations. The disruption represents a serious blow to Bangladesh’s development sector, especially given the country’s 50-year partnership with USAID. However, Saqib and his team remain cautiously optimistic, in that “while one door has closed, other donors will step in” to continue the momentum for sustainable agriculture and climate resilience.
Additionally, the Arannayk Foundation, also known as The Bangladesh Tropical Forest Conservation Foundation, “halted two projects with a total of $3 million in funding that focused on biodiversity and forest conservation.” Evidence suggests that this is likely the “USAID Ecosystems / Protibesh Activity” project, which had a timeline of 2021-2026 and a key goal to mobilize “700,000 hectares of key biodiversity areas under improved management.”
Not All Hope is Lost
Undoubtedly, the USAID cuts are devastating for climate progress. However, Bangladesh is still receiving considerable financing agreements from other international institutions. In December, the Asian Development Bank and the World Bank approved $1.1 billion “to accelerate the reforms and development activities of the interim government.”
Notably, this agreement’s goal is to support “policies to reduce air pollution, improve environmental enforcement, expand access to carbon markets, enhance sustainable water and sanitation services, improve the efficiency of the Bangladesh Delta Plan 2100, and advance a climate-resilient and sustainable environment.”
But What’s at Stake if Momentum Stalls?
The road ahead is undeniably complex. While the interim government has taken commendable steps—such as forming an air pollution task force and elevating climate justice in global forums—it’s also grappling with serious setbacks. The abrupt suspension of key USAID projects has stalled progress in areas like sustainable agriculture and forest conservation. At the same time, delays in scaling renewable energy and cancelled solar bids risk prolonging the country’s dependence on fossil fuels.
With national elections expected by the end of this year or early next year, the stakes are only growing. So far, climate action has not been a noticeable agenda in political campaigns. For example, the main opposition, the Bangladesh Nationalist Party, outlined a roadmap that focused on employment, foreign direct investment, tax reforms, and economic growth. However, they did not release any such ambitious plans for climate action. Similarly, the National Citizen Party, a brand-new political party led by the student leaders of the July-August protests, has yet to emphasize its plans on safeguarding the climate-vulnerable nation. Yet, because the party only launched in February, it still has time to articulate its climate agenda.
The next elected government must treat climate not as a side issue, but as a central pillar of its policy agenda. Bangladesh’s future depends on it.
Momentum has already been built—but it remains fragile. To keep it alive, political will, international solidarity, and homegrown innovation must work in tandem. Falling short now doesn’t just risk missed targets, it endangers lives, livelihoods, and the very possibility of a sustainable future.
Edited by Light Naing
