[Dhaka, Friday, 20 June 2025]: Bangladesh’s environmental, development, and civil society organizations have expressed grave concern over the government’s decision to revive the previously cancelled 1,200 MW coal-fired power plant in Matarbari, Maheshkhali, Cox’s Bazar. The revival of this project, initially cancelled by the previous administration in 2021, directly contradicts the visionary ‘Three-Zero’ policy Zero Carbon, Zero Poverty, and Zero Unemployment announced by H.E. Chief Advisor Dr. Muhammad Yunus.
On 25 May 2025, the Planning Commission approved the Project Development Proposal (PDPP), thereby reactivating the plant’s second phase, reversing the earlier decision to shelve the project in alignment with Bangladesh’s climate commitments.
On 19 June 2025, the Bangladesh Working Group on Ecology and Development (BWGED) submitted an open letter to the Honorable Chief Advisor, labeling the decision as “environmentally and economically disastrous” and calling for the project’s immediate and permanent cancellation. To ensure appropriate attention, copies of the letter were also sent to the advisors and senior officials of the Ministry of Power, Energy and Mineral Resources, the Ministry of Environment, Forest and Climate Change, and the Office of the Chief Advisor.
Hasan Mehedi, Member Secretary of BWGED, stated in the letter, “Bangladesh currently has an overcapacity of nearly 14,000 MW in power generation. Still, the public continues to bear the burden of massive capacity charges for idle plants. Adding another coal-based project will not only severely damage our environment but also escalate economic pressure on citizens.”
He further added, “At COP26, Bangladesh made a clear pledge not to approve any new coal-fired power plants. Breaking this promise will undermine the country’s global credibility and sabotage its renewable energy ambitions.”
The 1,200 MW coal project in Matarbari lost its strategic relevance after Japan’s Sumitomo Corporation withdrew from the second phase in 2022, citing alignment with global decarbonization goals and the need to phase out coal. According to the Institute for Energy Economics and Financial Analysis (IEEFA), Sumitomo’s exit highlighted the lack of justification for the project’s continuation.
The financial burden of operating coal power plants is already unsustainable. Bangladesh is struggling to import sufficient coal due to a foreign currency crisis. In FY2024–25 alone, capacity charges for coal-based power plants amounted to approximately BDT 160 billion, despite operating far below capacity—a colossal economic inefficiency.
In addition to demanding cancellation of the Matarbari project, BWGED urged the Honorable Chief Advisor to significantly increase investments in renewable and environment-friendly energy solutions. The group also made a humble appeal to the interim government to reevaluate the project considering its potential negative impact on public health, the environment, and the national economy.
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