Small and medium-sized enterprises (SMEs) operating in Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial estates could cut over 14 million tonnes of carbon dioxide emissions, reduce operational costs by 30 to 50 per cent, and potentially earn up to $0.40 million annually through carbon credits by switching to decentralised rooftop solar energy, a new study has revealed.
The research, conducted by Change Initiative, also highlighted that adopting renewable energy could help SMEs comply with international environmental and sustainability standards, enhancing long-term export competitiveness.
Unveiling the findings at a press conference in Dhaka on Saturday, CEO of Change Initiative M Zakir Hossain Khan said SMEs make up more than 90 per cent of industrial units in Bangladesh, employ around 85 per cent of the industrial workforce, and contribute 25 to 30 per cent of the country’s GDP. Yet most rely on a fossil-fuel-heavy electricity system, leaving them vulnerable to global price shocks and supply disruptions.
Zakir Hossain Khan emphasised that the government could raise the share of renewable energy to 20 per cent within a year through a targeted crash programme, mobilising $5 billion from development partners and another $5 billion through carbon and pollution taxes.
The study examined four high-impact sectors-tannery, plastic manufacturing, plastic packaging and light engineering within BSCIC estates, which collectively emit nearly 47 million tonnes of CO₂ annually, with a technically feasible reduction potential of more than 14 million tonnes per year.
Researchers Sabrin Sultana and Najifa Alam Torsa highlighted structural barriers, including high upfront costs, limited concessional financing, lack of technical expertise, and absent standardised energy audits.
They recommended a cluster-based decarbonisation pathway built on shared renewable energy systems, innovative financing models, and strengthened institutional coordination through BSCIC and related agencies.
Zakir Hossain Khan stressed the urgency of the energy transition, noting, “Our rooftops remain idle while global conflicts threaten energy security. Solar energy can make SMEs energy-independent, resilient to grid instability, and shielded from fossil fuel price volatility - ensuring competitiveness and safeguarding jobs.”
