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Bangladesh introduces 10-year tax exemption for renewable energy projects

Special Bangladesh introduces 10-year tax exemption for renewable energy projects
Workers from the Dhaka Electric Supply Company Limited repair an electrical transformer in Dhaka on June 13, 2021. (AFP)
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Updated 02 November 2024

Bangladesh introduces 10-year tax exemption for renewable energy projects

Bangladesh introduces 10-year tax exemption for renewable energy projects
  • Policy grants 100 percent tax exemption for renewable energy plants in first 5 years
  • Bangladesh’s renewable energy output is among the lowest in the world

DHAKA: Bangladesh is introducing a 10-year tax exemption package for renewable energy production — a move expected to help boost clean electricity generation, which is still hampered by high production costs.

The National Board of Revenue issued a notification earlier this week for projects that will begin commercial operations by mid-2030.

The policy grants 100 percent tax exemption for renewable energy plants in the first five years, 50 percent in the next three years, and 25 percent in the following two years.

“Companies whose commercial production will start between July 1, 2025 and June 30, 2030, are exempted from the tax,” NBR chairman Abdur Rahman Khan said in a statement specifying the waivers.

The policy backtracks on the previous government’s 2023 decision to withdraw full tax exemptions for the renewable energy sector, which discouraged local and foreign investors.

“It’s a very timely and good initiative ... it will create confidence among the investors,” Dr. S.M. Nasif Shams, director of the Institute of Energy at Dhaka University and secretary of the Bangladesh Solar Energy Society, told Arab News.

“It’s a good sign that within such a short span of time this interim government came up with this decision for boosting the renewable energy sector. It also complies with Prof. Yunus’ ‘three zero’ concept which he promotes around the world.”

Bangladesh’s caretaker government took office in August when ex-Prime Minister Sheikh Hasina quit and fled the country amid violent protests.

It is headed by Muhammad Yunus, Nobel Peace Prize laureate and economics professor who invented microcredit, who has been advocating work toward a world of zero poverty, zero unemployment and zero carbon emissions.

While Bangladesh aims to achieve its net-zero emissions goal by 2050, currently its clean electricity generation capacity is 1.38 GW or only about 5 percent of the total, which comes mostly from fossil fuels — mainly natural gas.

The country has been struggling for years with energy crises as demand grows about 7 percent a year amid increasing household and industry use, increasing Bangladesh’s dependence on imports as local production is insufficient, with the renewable energy output being among the lowest in the world.

Attracting investors with tax waivers could help with the high costs of building clean energy plants — currently one of the main obstacles to developing the renewable sector in the country.

“This decision will help the country’s economy a lot, as well as it will save the environment in a sustainable way,” Shams said.

“We have to go for renewable energy ... There is no alternative for us.”


ASEAN to host Trump at summit as US and China seek to avert trade war escalation

Updated 2 sec ago

ASEAN to host Trump at summit as US and China seek to avert trade war escalation

ASEAN to host Trump at summit as US and China seek to avert trade war escalation
KUALA LUMPUR: The bloc of Southeast Asian nations will host world leaders at a summit this weekend that will run alongside pivotal trade talks between the United States and China and serve as the first stop for US President Donald Trump’s swing through Asia. The Association of Southeast Asian Nations will press for trade multilateralism and deeper ties with new partners, while managing the fallout from Trump’s global tariff offensive at its annual meeting in Malaysia’s capital. Trump will be in Kuala Lumpur on Sunday to begin a five-day trip through Malaysia, Japan and South Korea, aimed at bolstering his diplomatic credentials, as US and Chinese officials work to avert a trade war escalation ahead of his planned meeting with China’s President Xi Jinping in South Korea next week.

WHO’S WHO AT ASEAN SUMMIT?
Leaders will gather on Sunday ahead of engagements with partners including Trump, Chinese Premier Li Qiang, Brazilian President Luiz Inácio Lula da Silva, South Africa’s Cyril Ramaphosa and Japan’s newly elected Prime Minister Sanae Takaichi.
“This represents a new strategic direction for Malaysia and ASEAN in expanding diplomatic and trade ties with other regions, including Africa and Latin America,” Malaysian Prime Minister Anwar Ibrahim, the summit’s host, said on Wednesday.
ASEAN, which also includes Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, will formally welcome East Timor as its 11th member on Sunday. Commonly known as Timor-Leste, its accession to ASEAN is seen as a political win for one of the world’s poorest countries, though analysts say the economic benefits remain uncertain.

TRUMP TO WITNESS THAI-CAMBODIA CEASEFIRE DEAL
ASEAN’s regional outreach comes even as its unity remains tested by internal disputes. Border tensions between Thailand and Cambodia erupted into a deadly five-day conflict in July, killing dozens of people and temporarily displacing about 300,000 in their most intense fighting in recent history.
Malaysia helped secure an initial ceasefire on July 28, aided by decisive calls from Trump to the leaders of both countries.
Thai Defense Minister Natthaphon Narkphanit said this week the two countries have made “meaningful progress” on a broader ceasefire agreement, which will require both sides to remove all mines and heavy artillery from their borders. The deal is expected to be signed on Sunday in the presence of Trump, Malaysian officials said.

SPLIT OVER MYANMAR
ASEAN, however, remains split over how to end a deadly civil war in Myanmar sparked by a military coup in 2021.
Fighting has intensified despite repeated calls for de-escalation, with ASEAN making little progress in getting Myanmar’s military rulers to adhere to a peace plan it agreed to months after the coup.
ASEAN foreign ministers will discuss on Friday whether to send regional observers to Myanmar’s general election, Malaysia’s Foreign Minister Mohamad Hasan said this week.
Critics have derided the election, set to begin in December, as a sham exercise to legitimize military rule.

US-CHINA TRADE TALKS, TARIFFS IN FOCUS
Trump is expected to be accompanied on his Asia trip by top US officials, including Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. Bessent and Greer plan to hold talks with Chinese officials in Malaysia to iron out issues ahead of the meeting between Trump and Xi, after Beijing expanded export curbs on rare earths. China said the talks with its vice premier He Lifeng will run until October 27.
Trump said he expected to reach agreements with Xi that could range from resumed soybean purchases by China to limits on nuclear weapons. Trump could also meet with Brazil’s Lula in Malaysia, sources have said, as Rio looks to lower hefty US tariffs on Brazilian goods.
Washington’s levies are expected to remain high on the ASEAN summit agenda, with Southeast Asian foreign and economic ministers due to hold a joint meeting for the first time in the bloc’s history on Saturday. The United States has imposed tariffs of between 10 percent and 40 percent on Southeast Asian imports, with the majority of ASEAN countries hit with a 19 percent rate.
The countries will seek to formalize trade deals with the United States with Trump present, Malaysian officials said. Malaysia also plans to host a gathering of leaders of the Regional Comprehensive Economic Partnership, the world’s largest trading bloc, on the sidelines of the ASEAN summit.
The RCEP, which includes all ASEAN members as well as China, Japan, South Korea, Australia and New Zealand, is touted by some analysts as a potential counter to US tariffs, but it is considered weaker than some other regional trade deals due to competing interests among its members.

Ivorian brothers dream of transforming cocoa industry

Ivorian brothers dream of transforming cocoa industry
Updated 5 min 38 sec ago

Ivorian brothers dream of transforming cocoa industry

Ivorian brothers dream of transforming cocoa industry
  • Fousseni and Alahassane Diakite, 33, opened a processing factory in August in their hometown of Divo, situated in a cocoa-dependent region some 200 kilometers from the economic capital Abidjan
  • The factory has a processing capacity of 36,000 tons annually, with a target of 80,000 tons

ABIDJAN: In a factory in southern Ivory Coast, where machines hum to produce chocolate bars and spreads, twin brothers dream of becoming “giants of cocoa processing.”
Ivory Coast, which holds its presidential election this Saturday, is the world’s leading cocoa producer but only processes about 40 percent locally while the rest is exported.
Fousseni and Alahassane Diakite, 33, opened a processing factory in August in their hometown of Divo, situated in a cocoa-dependent region some 200 kilometers (124 miles) from the economic capital Abidjan, with hopes of closing the gap.
Stored in jute sacks, the beans are roasted to unleash their aroma, shelled, and then ground.
The factory has a processing capacity of 36,000 tons annually, with a target of 80,000 tons.
Comparatively, US giant Cargill, Switzerland’s Barry Callebaut, and Singapore’s Olam each process between 100,000 and 200,000 tons of cocoa annually in the west African nation.
The twins’ added value lies in “the quality of our products, our services,” and their story, they told AFP.
Sons of a producer, “we are the pure products of Ivorian cocoa,” said Fousseni, asserting that they are now realizing their “dream.”
“We were sure that what we were going to do was not just for us, but also to inspire other generations,” he said.
A few years after earning their high school diplomas, they created a union of cooperatives bringing together over 4,000 producers.
They then founded their first company to create products for the pharmaceutical and cosmetic industries, such as cocoa butter, from the inedible parts of a cocoa pod.
Later, a second company was launched to process cocoa for food products.
Alahassane earned a business degree in Abidjan and has now pursued training at the HEC Paris business school.
Fousseni, meanwhile, has taken up practical training in agroforestry and agronomy.
“We complement each other,” Alahassane said.
While their cosmetic materials are exported “where there is demand,” he said, their chocolate for consumption is sold in Ivory Coast at competitive prices.
In stores, most chocolate bars, often European brands, cost between 2,500 and 4,000 CFA francs ($4 to $7), while the brothers’ bar costs 1,200 francs ($2).
Their small jar of spread is sold at the unbeatable price of 100 francs.
At a time of growing demand for ethical products, “all our productions are traceable,” assured Alahassane, while his brother specified that the factory’s machines run on renewable energy.

- Creating jobs -

Cocoa accounts for five million jobs in Ivory Coast, or one-sixth of the population.
The government-set price of cocoa paid to growers is at a record level of 2,800 CFA francs per kilo.
A few kilometers from Divo, in a shaded plantation carpeted with cocoa tree leaves, Kanga Prudence N’Guessan was cutting yellow pods with a machete.
“Our wish... is not to send our cocoa outside our country... when processing is done there, it becomes two or three times more expensive,” he said.
At another plantation, 49-year-old grower Harouna Ouattara agreed, saying, “local processing is insufficient.”
“The first obstacle to cocoa processing is the issue of financing,” explained Fousseni.
Their factory cost nearly 50 million euros ($58 million), the brothers noted, without specifying the source of the funds.
The second obstacle has been the lack of qualified labor.
Still, the brothers said their factory has created 1,000 direct and indirect jobs, primarily for locals.
Technical jobs are held by young people trained in major cities.
Salimata Ouattara, a 35-year-old chemist, studied in the southern port city of San Pedro.
In her white coat, between analyzes, she said she wants to “help the youth here who don’t have much knowledge about industrialization.”


Top Nigerian environmentalist sees little coming out of COP30

Top Nigerian environmentalist sees little coming out of COP30
Updated 35 min 5 sec ago

Top Nigerian environmentalist sees little coming out of COP30

Top Nigerian environmentalist sees little coming out of COP30
  • Since the 1950s, when crude was first discovered in southern Nigeria, between nine and 13 million barrels of oil have been spilled into the Delta, according to an independent group of experts who conducted a study in 2006
  • Between 2006 and last year, the Nigerian National Oil Spill Detection and Response Agency reported over 130 million liters of crude oil spilled in what Bassey describes as the “sacrifice zone”

LAGOS: Nnimmo Bassey, a prominent figure in the decades-long environmental struggles in Africa’s largest oil-producing country, will next month attend yet another UN climate summit, this time in Brazil.
“Unfortunately!” smiles the Nigerian 67-year-old, who harbors little hope for the outcomes of this “ritual” in which states participate “while knowing that nothing serious will come of it.”
Bassey, a longtime environmentalist, will only attend meetings among environmental activists on the sidelines of the official COP30 talks.
“For us as activists, the COP provides spaces for solidarity, for meeting other people, sharing ideas, and organizing in a different way,” he told AFP in an interview in Nigeria’s commercial capital, Lagos.
Yet he is hopeful that one day “the outside space may become the real decision-making space, while the politicians become the observers.”
Oil pollution that has ravaged the Niger Delta for decades is a textbook example of environmental struggles against extractivism and fossil fuels.
Since the 1950s, when crude was first discovered in southern Nigeria, between nine and 13 million barrels of oil have been spilled into the Delta, according to an independent group of experts who conducted a study in 2006.
Between 2006 and last year, the Nigerian National Oil Spill Detection and Response Agency reported over 130 million liters of crude oil spilled in what Bassey describes as the “sacrifice zone.”
That is not enough to deter Nigerian authorities, who want to increase national production. The government early this month announced that the number of active drilling rigs rose from 31 to 50 between January and July.
“I believe that oil should be kept in the ground, that nobody should extract not even one drop of oil,” said Bassey.

- ‘Young people rising up’ -

Africa’s most populous country is vulnerable to climate change, even though the continent as a whole only contributes about four percent of global greenhouse gas emissions, according to the World Meteorological Organization.
“Every region has peculiar environmental issues,” said Bassey, who won the 2012 Rafto Prize, a Norwegian award given to human rights defenders.
He lamented “increased desertification” in Nigeria’s north; “gully erosion” in the south, “deforestation” and an “environmental crisis from illegal mining” across the country.
“Everything is really horrible.”
“The seeds for the degradation that we’re seeing today, especially in the oil fields and the mining fields, were sown even while I was a child,” said Bassey, who was born the same year Nigeria exported its first crude oil, marking the start of “a continuum of disaster upon disaster.”
Bassey grew up in a small village in southeastern Nigeria, in a family of farmers and traders. His childhood was marked by the “horrors” of the civil war, commonly called the Biafra War, which ravaged the region between 1967 and 1970 and claimed at least one million civilian lives.
An architect by training, the writer and poet first became involved in defending human rights and opposing the country’s military authorities before working hand-in-hand with Ken Saro-Wiwa, a “martyr for environmental justice” who was executed by hanging by Sani Abacha’s military regime in 1995 for his fight against the abuses of oil companies in the Delta.
After more than three decades of activism, the demands remain the same: hold governments and the polluting companies “responsible,” restore the environment and pay reparations to affected people.
With his nearly 30-year-old foundation, Health of Mother Earth, Bassey is backing a lawsuit filed by a traditional monarch against the British oil giant Shell, demanding $2 billion in damages.
King Bubaraye Dakolo is also seeking to stop Shell from divesting from its Nigerian assets without fixing decades of pollution.
Oil companies always deny allegations of pollution, arguing that oil spills were caused by sabotage by local criminals.
Despite believing the situation worsens by the day, Bassey maintains there is still hope, thanks to a new crop of budding young activists.
“There’s a big groundswell of people who are rising up... young people rising up,” he said.
“I’m really very inspired. That’s positive.”


India trials Delhi cloud seeding to combat deadly smog

India trials Delhi cloud seeding to combat deadly smog
Updated 41 min 54 sec ago

India trials Delhi cloud seeding to combat deadly smog

India trials Delhi cloud seeding to combat deadly smog
  • Cloud seeding is the practice of using aeroplanes to fire salt or other chemicals into clouds to induce rain
  • New Delhi, its sprawling metropolitan region of 30 million regularly rank among world’s most polluted capitals

NEW DELHI: India trialled cloud seeding over its smog-filled capital for the first time, spraying a chemical from an aeroplane to encourage rain and wash deadly particles out of the air.

Cloud seeding is the practice of using aeroplanes to fire salt or other chemicals into clouds to induce rain.

New Delhi city authorities, working with the government’s Indian Institute of Technology Kanpur, launched a test run on Thursday afternoon using a Cessna light aeroplane over the city’s northern Burari area.

“A trial seeding flight was done... in which cloud seeding flares were fired,” Delhi Minister Manjinder Singh Sirsa said in a statement late Thursday.

“This flight was the proving flight for checking the capabilities for cloud seeding, the readiness and endurance of the aircraft, the capability assessment of the cloud seeding fitments and flares, and coordination among all involved agencies.”

It comes ahead of a planned rollout of the scheme.

Delhi’s Chief Minister Rekha Gupta said that “if conditions remain favorable, Delhi will experience its first artificial rain on October 29.”

It was not immediately clear what chemical was used in the test to encourage the rain.

New Delhi and its sprawling metropolitan region of 30 million people are regularly ranked among the world’s most polluted capitals, with acrid smog blanketing the skyline each winter.

Cooler air traps pollutants close to the ground, creating a deadly mix of emissions from crop burning, factories and heavy traffic.

Levels of PM2.5 — cancer-causing microparticles small enough to enter the bloodstream — at times rise to as much as 60 times UN daily health limits.

Pollution rose this week after days of fireworks launched to mark Diwali, the Hindu festival of lights, shooting PM2.5 levels to more than 56 times the limit.

That came after the Supreme Court this month eased a blanket ban on fireworks to allow the use of the less-polluting “green” crackers — developed to reduce particulate emission.

At dawn on Thursday, PM 2.5 levels were 154 micrograms per cubic meter in parts of New Delhi, according to monitoring organization IQAir, just more than 10 times World Health Organization limits.

A study found in September that the noxious air is even turning Delhi’s iconic 17th-century Red Fort black.

Scientists warned that the UNESCO World Heritage Site is being steadily disfigured by a black crust, according to a study published in the Heritage journal by a joint team of Indian and Italian researchers.

Invented in the 1940s, countries have been seeding clouds for decades to alleviate drought, fight forest fires and even to disperse fog at airports.

China used it in 2008 to try to stop rain from falling on Beijing’s Olympic stadium.

But research on the effects of cloud seeding on neighboring regions is mixed — and some evidence suggests it does not work very well even in the target area.


Europe must nurse itself after US aid cuts: WHO director

Europe must nurse itself after US aid cuts: WHO director
Updated 41 min 13 sec ago

Europe must nurse itself after US aid cuts: WHO director

Europe must nurse itself after US aid cuts: WHO director
  • Since taking office in January, US President Donald Trump has slashed US international aid and effectively dismantled USAID, the world’s largest humanitarian aid agency
  • Kluge said the WHO was experiencing an “existential” crisis with countries such as Britain, France and Germany, in addition to the United States, contributing significantly less

COPENHAGEN: Drastic aid cuts, notably by the United States, have made it vital for Europe to better manage health resources, the director of WHO Europe told AFP.
“We have a huge challenge, because the majority of our programs were funded by USAID and the US,” Hans Kluge of the World Health Organization Europe told AFP in an interview days before a meeting of the 53 countries of the WHO European region.
Since taking office in January, US President Donald Trump has slashed US international aid and effectively dismantled USAID, the world’s largest humanitarian aid agency.
Kluge said the WHO was experiencing an “existential” crisis with countries such as Britain, France and Germany, in addition to the United States, contributing significantly less.
Despite a 20-percent budget cut, WHO Europe wants to boost its role within domestic European health administrations.
“The WHO Europe of the future... is healthier, stronger, trusted, evidence-based, and politically neutral,” he said.
Kluge’s plan is based on restructuring the organization and prioritising its missions.

- Mental health crisis -

Kluge said WHO Europe needed a “dual track” approach needing to manage “manage a current crisis — (it) can be war, flooding” while keeping “core public health programs operational.”
“This is the biggest lesson learned from (the) Covid-19” pandemic, he said.
In Ukraine, for example, Europe is focusing its efforts on defense and “not enough on health.”
Europe must also tackle its mental health problem, aggravated by war, loneliness, anxiety and the aftermath of the Covid pandemic, he said.
“That’s one of the big things, the hottest issues,” he said, stressing the need to build up “citizen resilience.”
One European in six and one child in five will experience mental health problems at some point in their life, according to the WHO.
Kluge said his organization also needed to address worrying regional trends including youth addiction, a lack of online protection, the climate crisis and non-infectious diseases.
“We can channel our few resources in those directions,” he insisted.
Vaccinations are also crucial, he said, pointing out that in 2023, there were 366,000 children who had never received any kind of vaccine. In 2024, that number had risen to 440,000.
Mainly reasons such as the need to travel for vaccinations, costs and a lack of qualified health personnel led to this, he said, adding that medical misinformation was rampant as well.
Vaccination is “the most cost-effective public health tool which we have. So, we cannot afford to lose it.”
Prevention was also key to ensuring Europeans’ health, Kluge stressed.
“You put one euro in prevention, you get seven euros out of it,” said the 56-year-old doctor.
“It is time that Europe should take care of Europe.”