Apr 22, 2025
| Daily Sun Report
Civil society groups in Bangladesh have raised serious concerns over the Asian Development Bank’s (ADB) $17.34 billion investment in 106 energy projects across the country, criticising the bank’s continued support for fossil fuel-based infrastructure as outdated and harmful.
Speaking at a press conference in Dhaka on Tuesday, ahead of the ADB’s 58th Annual Meeting, representatives from NGO Forum on ADB, Coastal Livelihood and Environmental Action Network (CLEAN) and other allied organisations warned that the ADB’s energy strategy is locking Bangladesh into carbon-intensive development pathways.
Under the banner “Unpacking the Risks in ADB Investments in Bangladesh’s Energy Sector”, the groups said most of the ADB’s energy financing in the country has been directed toward fossil fuels despite global commitments to shift toward clean and renewable alternatives.
A recent analysis of NGO Forums reveals a critical failure in environmental and social safeguard implementation. Of the 106 projects worth $17.34b, over 65% ($11.36b) lack any safeguard classification, undermining transparency and accountability. Only 7.95% of funds are allocated to high-risk environmental projects, and a mere 0.35% ($60.58m) address resettlement or indigenous concerns.
NGO Forum Fossil Fuel Campaigner Sarmin Bristy said, “This raises serious doubts about ADB’s commitment to sustainable development.” NGO Forum on ADB Executive Director Rayyan Hassan said, “In electricity generation, ADB financed $4.88B for 2884.8 MW, of which 82.9% supports fossil fuel plants. Only 2.55% is directed to solar energy, with no investment in wind power. Fossil fuel projects receive the highest per-MW investment at $2.04M, while solar lags behind at $0.51m. Moreover, 67 project closures ($9.84b) signal poor planning and inefficiency.”
He strongly urged, “ADB must undergo an urgent policy overhaul to embed a proactive coal phase-out strategy, champion a just and equitable energy transition, align financing with the Paris Agreement to prevent carbon lock-in, prioritise regionally viable clean energy solutions, and decisively shift away from fossil fuel dependency to uphold environmental integrity and meet global climate goals.”
While presenting the bitter truth about ADB’s energy finance in Bangladesh, CLEAN Chief Executive Hasan Mehedi said, “In another daydream, ADB believed that the fossil gas will come someday. So, it further invested $104.11 million for upgrading Khulna 150 MW Gas Turbine Power Plant to a 225 MW Combined Cycle Power Plant. The Government had to pay Tk1,824 crore in the last 11 years for this power plant.”
“Bangladesh is on the frontlines of the climate crisis, yet ADB continues to bankroll fossil fuel projects that deepen our vulnerability and rob us of a liveable future. There is no ‘transition’ in gas, no justice in displacement and no sustainability in debt-driven destruction,” he added.
NGO Forum on ADB and CLEAN have called on the ADB to immediately end all fossil fuel financing and instead support a just and sustainable energy transition. The groups urged the bank to implement genuine safeguards, ensure free, prior and informed consent of affected communities and uphold fundamental human rights.
They also demanded that the ADB reject carbon markets, greenwashing tactics and corporate-led initiatives disguised as climate action. ADB must either lead a just, fossil-free energy transition or be held accountable for fuelling climate breakdown.
As the annual meeting unfolds, civil society organisations are calling for concrete action, not empty promises. “The era of fossil finance must end,” they said, adding that civil society will be watching closely and calling on international media, the public, and financial watchdogs to hold ADB accountable for its climate contradictions.
News Link: ADB’s $17b energy gamble endangers Bangladesh: Civil society