Danish companies Copenhagen Infrastructure Partners (CIP) and Copenhagen Offshore Partners (COP) have submitted a $1.3 billion investment proposal to the government of Bangladesh to produce 500 megawatts of offshore wind energy.

With the investments, CIP and COP, the global leaders in renewable energy, proposed to develop a commercial, utility-scale offshore wind project off the coast of the Bay of Bengal, COP said in a press release yesterday.

As Denmark is the pioneer and global leader in developing the wind energy industry, this initial investment proposal and continued collaboration could be a key driver of Bangladesh's progression into a green nation, it said.

The proposal has been placed in accordance with the Mujib Climate Prosperity Plan, COP said.

CIP and COP have also proposed Summit Group, an infrastructure operator and developer in South Asia and independent power producer in Bangladesh, to join its consortium.

The offshore wind project, in particular, presents a unique opportunity for the country to maximise the utilisation of its coastal resources, supporting the development of the 'Blue Economy'.

The proposal comes at a time when Bangladesh remains heavily reliant on fossil fuel imports to meet its growing energy demand.

As a highly climate-vulnerable nation, Bangladesh's annual gross domestic product (GDP) could fall by as much as 9 per cent by the middle of the century due to climate change, according to the World Bank.

Bangladesh, therefore, needs to adapt rapidly to climate change, while simultaneously accessing cleaner, more efficient technologies that support decades of development and growth, the press release said.

The country needs to shift away from unstable fossil fuel imports and limit emissions as the country aims to achieve high-income status and eliminate absolute poverty by 2041, it said.

With the Institute for Energy Economics and Financial Analysis (IEEFA) projecting an annual need of $1.7 billion in funding for the green transition, perhaps this multibillion-dollar proposal from CIP and COP could also kick start a new wave of investment, driving Bangladesh towards a truly climate prosperous future.

In June, Bangladesh and Denmark approved a "Joint Action Plan" for the next five years under the "2022 Sustainable and Green Framework Engagement".

During a recent Dhaka visit by Dan Jørgensen, the Danish minister for development cooperation and global climate policy, agreed to a partnership in green and clean technologies and investment for sustainable development.

While both sides have recognised the importance of improving the ease of doing business in Bangladesh for more Danish investment, Denmark further expressed its interest in supporting renewable energy, maritime, and blue economy sectors, among others.

Once implemented, the offshore wind project will be the first of its kind in Bangladesh – and possibly South Asia, enabling a technology transfer that would accelerate the learning curve for a nascent industry and reduce barriers to entry for future projects, the COP said.

The preliminary study findings suggest that hundreds of direct and indirect jobs could be created during the construction phase, in addition to dozens of permanent positions during the 30-year operational phase of the project.