BANGLADESH stands at a critical juncture in its development journey, where energy, equity and environment intersect in profound ways. As the country aspires to become a prosperous, climate-resilient nation by 2041, it faces the dual challenge of sustaining economic growth while responding to the escalating climate crisis. Central to this transition is the need to reform the energy sector in a way that is just, inclusive and people-centred. A just energy transition is not merely about replacing fossil fuels with renewables; it is about transforming the energy system to serve all citizens equitably, create decent livelihoods and uphold environmental sustainability.
A just energy transition recognises that energy is more than a commodity — it is a public good and a human right. In Bangladesh, millions of people, particularly in rural, remote and climate-vulnerable regions, still lack reliable access to electricity. Where access exists, quality and affordability remain major concerns. A transition that is truly people-centred must begin with the principle of universal energy access. This means prioritising off-grid renewable solutions, such as solar mini-grids and solar home systems, which can bring affordable and sustainable energy to underserved communities. Initiatives like the Infrastructure Development Company Limited’s solar home system programme have already proven the potential of decentralised renewables in Bangladesh. Scaling such efforts and integrating them with digital technologies can ensure that no one is left behind.
However, access alone is not sufficient. The energy transition must also be a catalyst for decent work and inclusive economic opportunity. Fossil fuel industries, though limited in Bangladesh, still employ significant numbers of workers, especially in sectors like coal transport, fuel distribution and diesel-powered irrigation. As the country moves towards renewable energy, a well-planned labour transition strategy is essential. Workers in fossil fuel-linked sectors must be supported through retraining, skills development, and pathways to green jobs. The expansion of the solar energy sector, energy-efficient appliances, and electric mobility presents new opportunities for employment. These emerging sectors can be designed to be more gender-inclusive and youth-friendly, aligning with Bangladesh’s demographic dividend.
Training institutions and vocational education programmes must be reformed and supported to integrate green energy modules, with partnerships between the private sector, government and civil society. This will also ensure that the energy transition becomes a job-creating engine, especially for the underemployed youth population across the country.
Community empowerment lies at the heart of a just transition. The current energy system is highly centralised, dominated by state-owned utilities and large private sector actors. This structure often excludes local communities from decision-making and benefit-sharing. A shift towards community-owned or community-managed renewable energy projects can not only democratise the energy system but also build local resilience and accountability. For example, rural energy cooperatives, with support from local governments and NGOs, could manage mini-grids and revenue-sharing models. Such decentralised governance models have shown promise in countries like Nepal and India and could be tailored to the Bangladeshi context.
Moreover, energy cooperatives can support inclusive economic development. Women, youth and indigenous communities can participate actively in energy planning and management, leading to stronger ownership and better results. Platforms for participatory decision-making can ensure that the voices of marginalised groups are heard and acted upon.
Equity must be a guiding principle throughout the transition. Low-income households, slum dwellers and people in disaster-prone areas often face the brunt of energy poverty. Without targeted policies, the transition could inadvertently deepen existing inequalities. Subsidies, pricing structures and investment incentives must be designed to protect vulnerable groups. For instance, targeted subsidies for solar irrigation pumps can reduce costs for smallholder farmers while cutting emissions. Likewise, rooftop solar and battery storage systems in informal settlements can provide energy security and reduce reliance on costly and polluting diesel generators.
Social protection schemes can be designed in tandem with clean energy initiatives to make energy affordable and accessible. At the same time, effective monitoring and feedback systems must be instituted to ensure that benefits reach the intended groups and that course corrections are made where needed.
Gender, migration, informality
THE energy transition must also engage with the realities of gender, migration and informal work. Women and girls often bear the burden of energy scarcity, spending hours collecting fuel or managing household chores in low-light conditions. A people-centred energy system must address these gendered dimensions. Empowering women as clean energy entrepreneurs, technicians and community leaders can enhance both energy access and gender equity. Similarly, climate-induced migration is displacing thousands from coastal and riverine areas to urban slums, where energy access is precarious. Urban planning must integrate affordable, clean energy services for these populations.
Efforts should also address the informal energy economy, such as the role of diesel-run generators or kerosene vendors in slums. A just transition means formalising and supporting these actors to shift towards clean alternatives while protecting their livelihoods.
Bangladesh’s unique geography and climate vulnerability demand that energy infrastructure be resilient. Cyclones, floods, river erosion and salinity intrusions regularly disrupt power supply, destroy infrastructure and displace communities. Clean energy systems must therefore be built with climate resilience in mind. For example, elevated solar panels, flood-resistant batteries, and portable clean energy kits can maintain services during disasters. Education, early warning systems and disaster preparedness should be integrated into energy planning to ensure continuity of services and protect lives.
Furthermore, infrastructure must be tailored to the needs of vulnerable geographies. Floating solar projects, solar-powered boats and modular systems can help serve shifting populations affected by river erosion or seasonal flooding. Disaster-resilient clean energy must be a policy priority and a design principle in all rural and urban electrification initiatives.
Inclusive governance
AN INCLUSIVE transition also requires inclusive governance. Too often, energy planning and decision-making are technocratic, top-down and opaque. A just transition calls for transparent, participatory processes that include local governments, trade unions, civil society, youth and indigenous communities. Only through inclusive dialogue can policies reflect the needs and aspirations of all stakeholders. National energy plans, including the Integrated Energy and Power Master Plan, must be aligned with Sustainable Development Goals, Nationally Determined Contributions, and the interests of frontline communities.
Policy coherence across ministries — energy, finance, planning, environment and labour — is essential. A national Just Transition Task Force could be established to coordinate and monitor progress, engaging actors from government, industry, civil society and the academic sector.
Financing just transition
FINANCE plays a pivotal role in shaping the trajectory of the transition. Bangladesh currently spends billions on fossil fuel subsidies, particularly for imported LNG and oil. These subsidies are economically inefficient and environmentally harmful. Redirecting these funds towards renewables, energy efficiency and green innovation can yield greater social and environmental returns. Climate finance, both public and private, must be mobilised to support inclusive energy investments. Development partners, multilateral banks and climate funds should prioritise projects that deliver co-benefits — climate mitigation, social protection and economic empowerment.
Innovative financing models such as green bonds, results-based financing, and blended finance can attract private investment into community energy projects. At the same time, national banks should be encouraged to develop green lending portfolios that serve small enterprises, cooperatives and individual entrepreneurs in the clean energy space.
Morever, Bangladesh must avoid falling into the trap of fossil fuel lock-in. The rapid expansion of LNG infrastructure, while aimed at energy security, risks creating stranded assets and long-term dependency on volatile global markets. Instead, the country should focus on diversifying its energy mix with a strong emphasis on solar, wind and energy storage. Grid modernisation, demand-side management and cross-border energy cooperation with neighbouring countries can also enhance system efficiency and resilience.
Energy security should be redefined not in terms of imported fuels, but in terms of domestic capacity for clean energy generation, innovation and distribution. Regional cooperation through the South Asian Association for Regional Cooperation (SAARC) or BIMSTEC could also help create integrated clean energy markets and enhance resilience.
Public engagement, energy literacy
EDUCATION and public awareness are crucial components of a just transition. Citizens must be informed and engaged in shaping energy choices. Schools, media and local campaigns can play a role in building energy literacy and climate consciousness. Empowered citizens are more likely to adopt clean technologies, hold institutions accountable and contribute to sustainable solutions.
Energy literacy should be integrated into school curricula and youth development programmes. Universities and technical institutes can foster innovation through research in renewable energy technologies, energy justice and community resilience. Mass media can support storytelling that humanises the energy transition and highlights local success stories.
Just transition for people, planet
A JUST and people-centred energy transition in Bangladesh is both a moral imperative and a development opportunity. It requires more than technological fixes or financial investments — it demands a transformation in how we think about energy, development and justice. By putting people at the centre, Bangladesh can build an energy future that is not only clean but also inclusive, equitable and resilient. This is the promise of a just transition: power for the people, by the people and for the planet.
With the right policies, investments and partnerships, Bangladesh has the potential to become a global leader in demonstrating how climate justice and energy transition can go hand in hand. The time to act is now.
Musharraf Tansen is a PhD researcher and former country representative of the Malala Fund.
