Climate action not a burden, but an opportunity for businesses: energy adviser

Climate action is no longer a burden for entrepreneurs and businesses, rather it is an opportunity to enhance competitiveness, according to experts.

"Climate should be treated as a core business strategy issue, not just a compliance matter where we meet minimum standards," said M Fouzul Kabir Khan, adviser to the power, energy, and mineral resources ministry.

He was speaking today at the plenary session of the "Second edition of Bangladesh Climate Action Forum 2024," organised by the Bangladesh Apparel Exchange (BAE) at the Radisson Blu Dhaka Water Garden.

Khan said the risks of climate transition, particularly the physical hazards like the recent floods, pose real threats.

Institutional investment is needed for building protective or adaptive structures and the perspective of loss and damage should be taken into consideration after any climate hazard takes place, he said.

"It's not just about risks. Climate-related risks also present opportunities for the business community in the actions they take today," Khan said.

He also mentioned that global investors are creating new opportunities and ways for businesses to stay competitive along with opening up new sources of international investment.

He urged businesses to take advantage of the alignment with the interim government's reform agenda. "Now is the time to lead by modernising, upgrading and making businesses more responsible and impactful."

Khan also highlighted Bangladesh's low penetration of renewable energy, which is just 2 percent.

"We aim to increase this and move towards larger and more sustainable systems," he said.

Lutfey Siddiqui, the chief adviser's special envoy for international affairs, said the modern journey towards sustainability began about 35 years ago.

"As entrepreneurs and businesses, it's important not just to focus on producing things cheaply, but on how we produce them," Siddiqui said.

"Climate transition is a real risk, and we need to treat it as a strategic business issue, not merely a compliance requirement."

Michael Miller, the ambassador and head of the delegation of the European Union to Bangladesh, pointed out the importance of action needed to be taken for countries like Bangladesh, which is among the most climate-vulnerable nations in the world.

Every fraction of a rise in degree of global temperature matters, he said.

Miller also mentioned that the global gateway aims to mobilise up to 300 billion euros in public and private investments by 2027 through a combination of grants, concessional loans, and guarantees to de-risk investments.

Achim Tröster, the German ambassador to Bangladesh, mentioned energy security as a critical concern for both Bangladesh and Germany.

As Bangladesh emerges as a major regional economic power, it is essential to meet its energy needs in a sustainable, secure, and climate-resilient manner, he said.

Thijs Woudstra, chargé d'affaires of the Netherlands embassy, said Bangladesh's garment industry is moving towards decarbonisation and it is time to take positive climate action in response to the national and global energy crisis.

"I look forward to continued collaboration with the Bangladeshi garment sector and the broader private sector to advance sustainable and circular textiles," he said.

Mostafiz Uddin, founder and CEO of BAE, encouraged entrepreneurs to prioritise the planet and the country.

"Climate action is no longer a burden for businesses—it's an opportunity," he said.

More than 300 engineers from apparel manufacturing units participated in the event, gaining practical strategies to drive progress towards sustainability and decarbonisation within their organisations.