What is Bangladesh's pathway to limit global warming to 1.5°C?

Industry

Last update: 1 August 2021

Industrial energy demand has steadily increased over the last two decades at annual rate of around 9%.1 In 2019, the industrial sector was responsible for 33% of the total final energy consumption, accounting for 44% of final electricity demand.2 To be 1.5°C compatible, the share of electricity in the industrial energy mix would need to reach 76-80% by 2050 from 28% in 2019. Different scenarios demonstrate a rapid decline in direct CO₂ emissions from the industrial sector to 2-6 MtCO₂/yr by 2050, from 25 MtCO₂/yr in 2019, mostly driven by a widespread adoption of energy efficiency measures and an increased penetration of decarbonised electricity (see our analysis of the power sector in Bangladesh).

Bangladesh's energy mix in the industry sector

petajoule per year

Scaling

Fuel share provided refers to energy demand only from the industry sector.

Energy demand for the industrial sector is currently dominated by fossil fuels (i.e. 73% in 2019), mostly natural gas. All scenarios except one demonstrate a declining trend of fossil energy demand by 2030.

In 2015, the Ministry of Power, Energy and Mineral Resources launched Energy Efficiency and Conservation Master Plan up to 2030, outlining how to reduce the industrial sector’s energy intensity by 20% by 2030 (compared to 2013 levels). Through energy efficiency and conservation measures, it also aims to reduce the sector’s energy consumption by 20%, leading to up to a 10.5% reduction in total energy consumption.3 Additionally, the Green Transformation Fund (GTF) of Bangladesh (USD$ 200 million) finances manufacturing technology upgrades for energy and water efficiency outcomes, and was recently expanded to include all subsectors.4

Bangladesh's industry sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

Bangladesh's GHG emissions from industrial processes

MtCO₂e/yr

1.5°C compatible industry sector benchmarks

Direct CO₂ emissions, shares of electricity, and combined shares of electricity, hydrogen and biomass from illustrative 1.5°C pathways for Bangladesh

Indicator
2019
2030
2040
2050
Decarbonised industry sector by
Direct CO₂ emissions
MtCO₂/yr
25
12 to 19
3 to 9
2 to 6
2040 to 2056
Relative to reference year in %
-51 to -23%
-86 to -64%
-94 to -77%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
28
38 to 47
60 to 69
76 to 80
Share of electricity, hydrogren and biomass
per cent
28
40 to 49
64 to 95
79 to 98

Fuel share provided refers to energy demand only from the industry sector. BECCS are the only Carbon Dioxide Removal (CDR) technologies considered in these benchmarks.
Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). All values are rounded. Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

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