If 10 percent carbon tax is imposed on the fuels, it can add at least Tk. 430 crores of revenue in country’s annual income as well as reduce 11 lakh tons of carbon emission annually.
Along with decreasing carbon emission, imposition of carbon tax can encourage renewable energy production and green economy in the country.
Policy Research Institute (PRI) organised a dialogue on ‘Towards a Carbon Tax for Bangladesh’ at their conference room in the city, on Sunday, where experts came up with the observations.
Vice-Chairman of PRI, Dr. Sadiq Ahmed and Director of the organisation, Dr. Bazlul Haque Khondker presented a study finding in the programme.
Dr. Sadiq, while presenting the study, said Bangladesh is experiencing rapid growth in GDP but it may put serious adverse environmental consequences if the fuel using practice is not changed from fossil fuel to renewable one.
He said Bangladesh having 2.7 percent of the world’s population share, is responsible for only 0.2 percent of global carbon emission.
However, in 2016, it produced at least 22 crore tons of carbon where power generation, industry and transport, altogether, contributed 76 percent, Dr. Sadiq said.
At least 44 percent of the total amount of carbon emission in the country is coming from power generation sector while 14 percent from transportation and rest of the emission is coming from industrialisation and urbanisation, he added.
The PRI researcher claimed carbon emission could be reduced in two consecutive steps- eliminating subsidy from fuel oil and imposing carbon tax on them which would help to decrease carbon emission and increase revenue as well.
He also said the imposition of additional tax on the fuel can cause employment falls and increase in the price of goods and services and may affect the highest and lowest 10 percent of economic clusters.
In the discussion, the other experts said Bangladesh is way behind the rest of the world in clean energy and clean technology manufacturing. Elimination of fossil fuel subsidy and introduction of carbon tax will help encourage clean energy production.
They also stressed to develop the rail and water way transportation system which would help to decrease the carbon emission from road transportation.