Bangladesh, to achieve its vision of becoming an upper middle-income country by 2031, will need green growth, said a new World Bank report launched on Thursday.

According to the Framework for Implementing Green Growth in Bangladesh – 2023 report, this could be acheiveable through institutional strengthening, regulatory reforms, climate-responsive public and private finance, and an enabling policy framework.

The report said that green growth—by balancing economic prosperity with environmental compliance, benefits, and protection—could be a strong and sustainable driver of growth.

The report proposed nine key policy directions aimed at achieving three overarching objectives: effective environmental governance and energy transition, new engines and skills for green growth, and a just transition to a resilient, green and healthy society.

The policy directions included strengthening environmental governance, promoting renewable energy trade, investing in green industries and human capital, and improving public health and well-being, among others.

It is important that all the recommended policies work together for them to be successful, the report mentioned.

‘Global experience shows that growth that harms the environment cannot be sustained. On the other hand, green growth can offer a strong and effective way to reduce poverty while safeguarding our environment, essentially serving as a catalyst for growth,’ said Abdoulaye Seck, World Bank Country Director for Bhutan and Bangladesh “I am happy to see Bangladesh government’s commitment towards achieving green and resilient growth, which resonates well with the World Bank’s new vision, of ending poverty on a livable planet.’

The report said that Bangladesh’s Green Growth agenda needed to take a holistic approach, encompassing clean air, water, and land, quality jobs, mobility, clean technology, and investments in human capital.

The report also suggested robust financing mechanisms to support green growth initiatives, address environmental challenges, build skills for green financing across sectors, and establish public-private partnerships, among other measures.

‘Coordination and coalitions among the ministries, between the public and private sectors, development partners, and other stakeholders will be essential for implementing the framework for green growth,’ said Eun Joo Allison Yi, World Bank Senior Environmental Specialist and co-author of the report.

‘Together, prioritizing and implementing green growth policies and investments will help Bangladesh to achieve economic growth in a sustainable manner.’

The report recommended the creation of a governance framework for greener growth, the use of a mix of incentives to boost environmental markets, and the enhancement of institutional capabilities.

The Framework could serve as a basis for how green growth can be realised in alignment with the country’s economic and sectoral priorities, it said.

This can be a positive step towards a future for Bangladesh that is greener, climate-resilient, and more sustainable, the report added.