SMEs in BSCIC industrial estates could cut more than 14.09 million tonnes of carbon dioxide emissions, earn up to $0.40 million annually through carbon credits, and reduce operational costs by 30 to 50 per cent by adopting decentralised rooftop solar energy, a new study has found.
The study, conducted by Change Initiative, also revealed that such a transition could help secure long-term export competitiveness by enabling compliance with environmental and sustainability standards.
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Unveiling the findings at a press conference at a hotel in Dhaka o. Saturday, M. Zakir Hossain Khan, chief executive officer of the organisation, said SMEs account for more than 90 per cent of industrial units, employ around 85 per cent of the industrial workforce, and contribute 25 to 30 per cent of the country’s GDP. Yet, he noted, they operate within an energy system in which around 95 per cent of electricity is generated from fossil fuels, leaving them highly vulnerable to global volatility.
Khan said the present government could raise the share of renewable energy to 20 per cent, in line with its electoral commitment for 2030, within just one year if it adopted a crash programme.
He said funding would not be a major obstacle if resources were allocated efficiently and safeguarded against corruption.
Replying to a question, he said Bangladesh could potentially mobilise a $5 billion renewable energy fund from development partners, while another $5 billion could be generated through carbon and pollution taxes imposed both domestically and in export destinations.
He stressed the urgent need for an energy transition to strengthen energy security and sovereignty by reducing dependence on imported fuel.
The research focused on four high-impact sectors within Bangladesh Small and Cottage Industries Corporation industrial estates: tannery, plastic manufacturing, plastic packaging and light engineering. Together, these sectors are estimated to emit 46.99 million tonnes of carbon dioxide annually, with a technically feasible reduction potential of 14.097 million tonnes per year.
The keynote presentation was delivered by co-researchers Sabrin Sultana and Najifa Alam Torsa, who highlighted the study’s key findings.
Zakir Hossain Khan said: “While global conflicts threaten to turn out our lights and air pollution steals years from our lives, our factory rooftops remain idle.
Renewable energy policy must move beyond targets to ensure energy sovereignty by reducing import dependence and delivering reliable, affordable power to SMEs, which drive Bangladesh’s economy and employment.
“We do not just want to survive the 2026 energy crisis, we want to lead the region. If China, India and Vietnam can accelerate their renewable energy transitions, Bangladesh too can move towards a nature-smart and sovereign future by securing energy independence, insulating CMSMEs from grid instability and shielding them from the price volatility of imported fossil fuels without losing competitiveness or jobs.”
The study combines machine-level energy assessments, production mapping and verified electricity data to build a robust emissions baseline.
Beyond technical solutions, the study also identifies several structural barriers hindering adoption of solar energy, including limited access to concessional finance, high upfront investment, a lack of technical expertise among relevant stakeholders, and the absence of standardised energy auditing systems.
To address these challenges, the study proposes a cluster-based decarbonisation pathway built on three pillars: shared renewable energy systems at estate level
innovative financing models, including OPEX and concessional renewable energy finance stronger institutional coordination through BSCIC and related agencies.