Bangladesh could earn approximately $1 billion annually by selling carbon credits generated through its nationwide programme to plant 25 crore trees, according to a government report.
Prime Minister Tarique Rahman officially inaugurated the five-year initiative on 13 June, with the primary goals of strengthening environmental protection and combating the adverse impacts of climate change.
A key component of this intiative, as highlighted in Climate Finance Budget Report, is the potential for large-scale afforestation to generate significant carbon credit, reports BSS.
Citing estimates from the World Bank, the report states that if the programme is implemented successfully, the country could generate $1 billion a year solely through tree-based carbon sequestration.
Under international carbon credit mechanisms, planting areas must be registered and reported to relevant international agencies and participating nations beforehand.
Beyond financial gains, the initiative is expected to yield substantial environmental benefits, including temperature reduction, improved rainfall patterns, enhanced soil quality, and increased ecosystem resilience.
This is viewed as a pathway toward sustainable development and a catalyst for new opportunities in green economic growth.
The global carbon pricing market reached $107 billion in 2025, representing a 2 per cent increase in real value compared to 2024. The current market capacity stands at 250 billion and is projected to hit $1 trillion by 2050, with the private sector expected to be the primary investor.
As one of the world’s lowest per capita emitters of greenhouse gases, Bangladesh stands to gain significantly from global carbon trading if its reduction programmes are designed and implemented correctly. However, countries must demonstrate verifiable progress to attract further investment.
Despite the potential, the report notes that Bangladesh is not yet fully prepared to participate in the international carbon market.
Significant gaps remain, including limited technical knowledge regarding Article 6 mechanisms, weak legal and regulatory frameworks for issuing and trading carbon credits, and insufficient capacity in both the public and private sectors for monitoring, reporting, and verification (MRV) and project certification.
Addressing these deficiencies through regulatory reform, capacity building, and strategic institutional investment is considered a priority.
Carbon credit represents one verified metric tonne of carbon dioxide or equivalent greenhouse gas that has been reduced, removed, or prevented. Bangladesh already possesses experience in this field, dating back to 2006 when the Infrastructure Development Company Limited (IDCOL) registered the country’s first Clean Development Mechanism (CDM) project with the United Nations.
Since then, IDCOL has sold 2.53 million carbon credits, earning $16.25 million, approximately Tk170 crore at current exchange rates, from solar energy and improved cookstove projects. This track record provides a credible foundation and demonstrates the technical capacity required to expand Bangladesh’s participation in global carbon markets.
