Bangladesh’s coal expansion plan at odds with renewable energy commitments: GEM

Bangladesh’s plan to extract 10 million tonnes of coal annually and expand coal imports stands in direct contradiction to its national goal of sourcing 40% of electricity from clean energy by 2041, according to a new report by Global Energy Monitor (GEM) released on Tuesday.
The Global Coal Mine Tracker report highlights major inconsistencies in the country’s energy policy and warns of long-term economic and environmental consequences.
The report cautions that if Bangladesh achieves its clean energy targets ahead of schedule, the proposed coal mines—still in the early planning stages—could become stranded assets, leading to economic losses and increased environmental risks.
According to the report, global coal mine development fell to its lowest level in a decade in 2024, with only 105 million tonnes of new capacity added—a 46% drop from 2023. However, more than 850 coal mine projects are still under consideration across 30 countries, with over 90% of the proposed capacity concentrated in China, India, Australia, Russia, and South Africa.
In South Asia, Bangladesh and Pakistan are leading coal-based power expansion, while Indonesia dominates in Southeast Asia with plans to add 31 million tonnes per annum (Mtpa) of coal mining capacity—much of it targeting export markets like Bangladesh.
Despite its low domestic coal output—currently under 1 million tonnes annually from the Barapukuria mine in Dinajpur—Bangladesh ranks third in South Asia in proposed coal mining capacity, with nearly 10 Mtpa in the pipeline.
Coal currently accounts for just 5.5% of Bangladesh’s electricity mix, with gas, oil, and traditional biomass remaining the primary energy sources. However, coal demand is projected to grow through 2030, driven by projects like the Payra power plant and forecasts from the 2023 Integrated Energy and Power Master Plan (IEPMP).
Government officials argue that developing domestic coal is essential to reducing import dependence and improving energy security. They also justify coal expansion as part of a broader transition away from traditional biomass to more modern energy sources.
However, GEM warns that if the clean energy transition accelerates, Bangladesh’s coal demand may peak earlier than expected—rendering these proposed mines economically and environmentally unviable.
The report further warns that full implementation of proposed coal projects could result in 15.7 million tonnes of methane emissions annually—more than Japan’s total annual greenhouse gas output. Such emissions would significantly undermine progress toward the Paris Agreement’s climate goals.
Both the International Energy Agency (IEA) and the United Nations have called for a 39% to 75% reduction in coal production by 2030, based on 2020 levels of 7,607 million tonnes. Current expansion plans deviate sharply from this trajectory.
Dorothy Mei, project manager of GEM’s Global Coal Mine Tracker, said, “Literally and figuratively, the ‘canary in the coal mine’ is still warning us. Unless these new mine proposals are swiftly canceled, the resulting methane emissions will make meeting the Paris climate targets nearly impossible.”