Baku: Chief Adviser Professor Muhammad Yunus has highlighted the necessity of adequate financial and technical support for climate-vulnerable countries with limited decarbonisation capacity to develop green industries. He emphasized Bangladesh’s willingness to collaborate with the Climate Club to enhance international cooperation in capacity building, technology transfer, and concessional decarbonisation finance.
According to Bangladesh Sangbad Sangstha, Prof Yunus addressed the High Level Climate Club Leaders Meeting, hosted by Germany and Chile, at COP29 in Baku, Azerbaijan. He stressed the urgent need for deep, rapid, and sustained reductions in greenhouse gas emissions, aiming for a 43 percent reduction by 2030 and achieving net-zero emissions by 2050 to limit global warming to 1.5 degrees Celsius. Prof Yunus called for the demonstration and deployment of proven low-emissions technologies, particularly in emerging markets and developing economies.
He noted that many decarbonisation technologies entail s
ignificant upfront investments, posing challenges for industries in vulnerable developing countries like Bangladesh, which have limited access to financing. The Chief Adviser underscored the importance of creating financial vehicles that would provide concessional finance to private sector industries in emerging developing economies such as Bangladesh.
Prof Yunus highlighted the necessity of international cooperation, capacity building, and technology transfer under Article 6.8 of the Paris Agreement. He also emphasized the need for international agreements on carbon pricing or border adjustment taxes to ensure a level playing field by imposing equivalent carbon costs on imports. He argued that least developed countries (LDCs) require preferential treatment due to their unique circumstances and development needs.
He pointed out the potential risk of carbon leakage, which can undermine incentives for innovation in low-carbon technologies globally. To mitigate these risks, Prof Yunus advocated for policies su
ch as carbon border adjustments and international cooperation to balance decarbonisation efforts with economic stability. He noted that while these policies could affect the competitiveness of companies in vulnerable developing countries like Bangladesh, preferential treatments are necessary for LDCs.
Prof Yunus also warned against the fragmented advancement of mitigation policies, which could result in industrial activities shifting to regions with less stringent carbon pricing policies, leading to carbon leakage and potentially hindering global emission reduction goals. He mentioned that the EU’s proposed Carbon Border Adjustment Mechanisms (CBAMs) could incentivize countries to strengthen their climate policies and prevent carbon leakage.
In conclusion, Prof Yunus called for international collaboration to foster economic growth and create new job opportunities in emerging markets, supporting a just and inclusive transition.