Bangladesh budget proposes Tk 100 crore for climate fund with carbon trading and solar tax breaks

Bangladesh's proposed FY2026-27 budget includes Tk 100 crore for the Climate Change Trust Fund, aimed at mitigation and adaptation. The budget also outlines a broad green agenda: a zero percent tax rate for solar power until 2035, a 5 percent tax rebate for solar electricity consumers, and reduced duties on electric vehicles and charging stations. The government plans to bring 50 percent of coastal mangrove forests under carbon trading and is implementing 11 new carbon trading projects under Article 6 of the Paris Agreement. On the ground, the budget targets planting 4.28 crore saplings in the next year as part of a five year goal of 25 crore trees. It also aims to create around 3.5 lakh green jobs through afforestation and environmental initiatives. A Circular Future Model focuses on waste to energy, organic fertilizer, and plastic recycling, with a goal to reduce plastic waste by 30 percent over five years. The budget also allocates Tk 200 crore for blue economy research and development.