STAFF CORRESPONDENT

The proposed budget for fiscal 2026-27 has taken several steps to promote renewable energy but falls short of removing the longstanding fiscal advantages enjoyed by fossil fuels, said the Centre for Policy Dialogue (CPD).

“Despite a greener fiscal stance than in previous years, Bangladesh’s tax regime still provides stronger support for fossil fuel-based energy than for a full-scale renewable energy transition,” said Helen Mashiyat Preoty, senior research associate at CPD, while presenting the keynote paper at an event yesterday.

The CPD’s analysis found that fossil fuel-based projects continue to receive 98 percent of generation-sector allocations, while renewable energy projects account for only 2 percent of the proposed annual development programme (ADP).

Of the renewable-energy-related projects included in the ADP, only five received allocations, three of which are continuing projects.

No new renewable energy or solar power projects have been included in the current ADP, according to the CPD.

In addition, 11 renewable-energy-related projects failed to secure approval this year, including seven solar projects with a combined capacity of 640 megawatts, one battery energy storage project and three grid-modernisation initiatives.

However, the CPD welcomed several fiscal measures aimed at promoting renewable energy.

These include the proposal to allow solar power generation companies to enjoy a zero-percent tax rate until 2035, as well as reductions or exemptions from import duties, regulatory duties and advance taxes on a range of solar-related equipment and components.

The think-tank also praised measures to encourage electric vehicle adoption, including the elimination The

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