ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2020

As of 2018, approximately 80 percent of Bangladeshi households lacked access to clean cooking alternatives, with 74 percent of the rural population relying on biomass. While LPG adoption is growing at 8–10 percent annually due to government tax exemptions, other technologies like electric stoves (1.1% usage) and improved cookstoves (10% usage) face affordability and awareness barriers. Financing is heavily skewed toward improved cookstoves (ICS) via development finance institutions (DFIs) and government programs like IDCOL, while private sector participation remains limited except in the LPG sector. The proposed National Action Plan 2020–2030 estimates a total investment requirement of USD 2.9 billion to achieve 100 percent clean cooking access by 2030.

• A significant portion of the population lacks clean cooking access, leading to severe health and environmental consequences; over 70,000 people die annually in Bangladesh from diseases related to Indoor Air Pollution (IAP), and the country lost 9 percent of its tree cover between 2011 and 2019.
• Biomass remains the dominant fuel source, particularly in rural areas where 74 percent of the population relies on it, including straw/leaf, husk/bran, and jute stick/wood/bamboo. Under a business-as-usual scenario, 30 percent of households are projected to still rely on biomass by 2030.
• LPG adoption is increasing at an annual rate of 8–10 percent, supported by government measures such as reducing Advance Income Tax (AIT) from 5 percent to 2 percent and waiving the 15 percent import duty.
• The financing landscape is dominated by development finance institutions (DFIs) and government-led initiatives focusing on Improved Cookstoves (ICS), such as the IDCOL program which aimed to disseminate 5 million ICS by 2021 using GCF grants and IDA credit.
• Private sector participation is largely absent from the clean cooking sector, with the notable exception of private businesses operating in the LPG market.
• The National Action Plan for Clean Cooking in Bangladesh (2020–2030) targets 100 percent access by 2030, requiring a total investment of USD 2.9 billion, split into USD 0.86 billion from public and private sectors and USD 2.01 billion from consumer expenditure financing.
• Stove and fuel stacking is a prevalent reality, particularly in rural areas; 75 percent of households using firewood also use other biomass fuels, and 55 percent of rural clean stove users continue to use traditional biomass stoves.

APA

Sustainable Energy for All (2020). ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2020. https://www.seforall.org/system/files/2020-12/EF-2020-UL-Bangladesh-SEforALL.pdf

Chicago

Sustainable Energy for All. ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2020. 2020. https://www.seforall.org/system/files/2020-12/EF-2020-UL-Bangladesh-SEforALL.pdf.

Wikipedia

{{cite report |author=Sustainable Energy for All |title=ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2020 |date=2020 |url=https://www.seforall.org/system/files/2020-12/EF-2020-UL-Bangladesh-SEforALL.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sustainableenergyforall2020energizing, author = {{Sustainable Energy for All}}, title = {{ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2020}}, institution = {Sustainable Energy for All}, year = {2020}, url = {https://www.seforall.org/system/files/2020-12/EF-2020-UL-Bangladesh-SEforALL.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }