DHAKA, June 7, 2026 – The Centre for Policy Dialogue (CPD) has called for comprehensive fiscal reforms to remove policy biases favouring fossil fuels and accelerate Bangladesh’s transition to renewable energy.
At a press briefing in the capital today, CPD Research Director Dr Khondaker Golam Moazzem presented a study titled “Fiscal Discrimination between Fossil Fuel and Renewable Energy: Alternate Solutions to Address the Energy Crisis.”
The study found that fossil fuel-based power projects have received more than 95 percent of development budget allocations over the years, while renewable energy initiatives have received less than five percent, discouraging investment in clean energy technologies.
According to the report, liquefied natural gas (LNG) imports enjoy significantly lower tax burdens than renewable energy technologies such as solar equipment, lithium-ion batteries, electric vehicles and grid infrastructure. The study argues that the current fiscal framework undermines the competitiveness of renewable energy and slows the country’s energy transition.
CPD estimated that preferential tax treatment for LNG results in substantial revenue losses and provides additional financial benefits not available to renewable energy industries.
The report also highlighted the heavy subsidy burden of fossil fuel-based electricity generation, noting that renewable energy projects receive no capacity payments despite facing high upfront investment costs.
To create a level playing field, CPD recommended reducing taxes on renewable energy equipment, restoring VAT on LNG imports, lowering customs duties on energy storage technologies and ending discriminatory incentives for fossil fuel-based power generation.
Dr Moazzem urged the government to introduce green subsidies and grants in the FY2026-27 budget to support smart grid development, renewable energy expansion and electric vehicle adoption.
CPD researchers Helen Mashiyat Preoty and Atikuzzaman Shazeed were also present at the briefing.
