Bangladesh will need green growth to achieve its vision of upper middle-income country by 2031, which can be achieved through institutional strengthening, regulatory reforms, climate responsive public and private finance and enabling policy framework, says a new World Bank report launched on Thursday.

According to the Framework for Implementing Green Growth in Bangladesh - 2023 report, green growth—by balancing economic prosperity with environmental compliance, benefits and protection—can be a strong and sustainable driver of growth.

The report proposed nine key policy directions that aim to achieve three overarching objectives: effective environmental governance and energy transition, new engines and skills for green growth, and a just transition to a resilient, green, and healthy society.

Policy directions include strengthening environmental governance, promoting renewable energy trade, investing in green industries and human capital, and improving public health and well-being, among others. It is important that all the recommended policies work together for them to be successful.

“Global experience shows that growth that harms the environment cannot be sustained. On the other hand, green growth can offer a strong and effective way to reduce poverty while safeguarding our environment, essentially serving as a catalyst for growth," said Abdoulaye Seck, World Bank Country Director for Bhutan and Bangladesh.

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“I am happy to see Bangladesh government’s commitment towards achieving green and resilient growth, which resonates well with the World Bank’s new vision, of ending poverty on a livable planet.”

Bangladesh’s Green Growth agenda needs to take a holistic approach, encompassing clean air, water, and land, quality jobs, mobility, clean technology, and investments in human capital.

The report also suggests robust financing mechanisms to support green growth initiatives and address environmental challenges and build skills for green financing among sectors, establish public-private partnerships among others.

“Coordination and coalitions among the ministries, between the public and private sectors, development partners, and other stakeholders will be essential for implementing the framework for green growth,” said Eun Joo Allison Yi, World Bank Senior Environmental Specialist and co-author of the report.

“Together, prioritizing and implementing green growth policies and investments will help Bangladesh to achieve economic growth in a sustainable manner.”

The report recommended creation of a governance framework for greener growth, use of a mix of incentives to boost environmental markets, and to boost institutional capabilities.

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The Framework can serve as a basis for how green growth can be realized in alignment with the country’s economic and sectoral priorities.

This can be a positive step towards a future for Bangladesh that is greener, climate resilient, and more sustainable.