COP29 Climate Change Conference Must Address Acute Challenges Of Developing Countries Such As Bangladesh - Summit Power International Limited

(MENAFN- ACN NewsWire) COP29 Climate Change conference Must Address Acute Challenges of Developing Countries Such as Bangladesh - Summit Power International Limited

Dhaka, Bangladesh, Nov 9, 2024 - (ACN Newswire) -
The U.N. Climate Change Conference next week needs to urgently address major gaps in funding and technology and adopt fresh approaches to meet the
challenges of developing countries with vulnerable communities such as Bangladesh, Summit Power International Limited (“SPIL”), the country's largest private sector power generation company, said today.

Singapore-headquartered SPIL, the leading foreign direct investor in Bangladesh's power sector, said it hoped the widely anticipated COP29 Climate Change Conference starting 11 November in Azerbaijan will lead to an actionable agenda that can balance global net zero targets with the needs of poorer countries seeking to eradicate poverty and create jobs on an accelerated scale.

SPIL operates 18 power plants with a combined capacity of 2,255 MW or approximately 17% of the total installed private power generation capacity in the country of 173 million people. As a responsible company with a strong track record of providing energy and power to Bangladesh, SPIL is acutely aware of the international initiatives to de-carbonise.

At COP21 in 2015, 196 countries signed the Paris Agreement with collective commitments to limit global warming. However, subsequent global financing initiatives have been deadlocked. Among the key initiatives of COP29 is a New Collective Quantified Goal to deliver substantive climate financing to regions that need it most.

Beyond the pledges, global climate goals must also take into consideration challenges unique to each country, especially the lesser developed, said SPIL. Prior to COP29, SPIL had outlined its internal Climate Action Plan to support Bangladesh's stated goal (declared at the COP26 in Glasgow in 2021) to achieve up to 40% of clean energy use in its power generation mix by 2041.

“Both the national and SPIL's own de-carbonisation targets have to be viewed against the backdrop of the pandemic and subsequent supply chain disruptions as well as the conflict in Ukraine which drove up prices of fossil fuels. Bangladesh, which has to contend with cyclones and flooding on a regular basis, has felt the impact of such disruptions more acutely than most other countries.

“We hope COP29 – whose leaders have promised engagement, ambition, and action – will address decisively real-world issues from the perspective of developing nations and responsible corporates involved in the energy eco-system, such as SPIL. We look forward to holistic approaches that avoid a one-size-fits-all mindset,” SPIL said.

SPIL's Founder and Chairman, Mr Muhammed Aziz Khan, a Singapore citizen, said:“We hope COP29 adopts approaches fairly and equitably to address the social and economic impact, particularly for vulnerable communities and workers in fossil fuel industries in developing countries. A just energy transition must promote circular economy principles that benefit local populations to ensure resilience.

Second, international organisations, governments, and corporations must provide funding and technology to support the energy transition. For developing countries such as Bangladesh, such approaches must combine development finance and foreign direct investments.

Third, different regions will have different timelines to progress towards net zero. For the near term, Bangladesh's power sector – which has been facing issues of imbalance of supply and demand and delays in payments – needs to reduce dependence on coal or heavy fuel oil and increase usage of natural gas which is less carbon-intensive, even as it pursues initiatives in renewable energy.”

As part of its Climate Action Plan, SPIL has committed not to develop new fuel-fired power plants in Bangladesh. It will also reduce its Scope 1 and Scope 2 emissions by 10% by 2030 as compared to its 2021 baseline and plans to derive 40% of its energy generation portfolio from clean energy sources by 2040. SPIL has also formed a Sustainability Task Force under the leadership of the CEO.

While recognising geographical limitations in Bangladesh for large-scale solar or wind farms, SPIL has outlined plans to invest or obtain international financial support for up to USD 3 billion in renewable energy projects in the country.

About Summit Power International Limited (“SPIL”)

SPIL is the largest Independent Power Producer (IPP) in Bangladesh, reflecting 17% of the country's total private installed capacity and 7% of the country's total installed capacity. SPIL owns and operates a total of 18 power plants with a combined generation capacity of 2,255MW. It also operates Bangladesh's second Floating Storage and Regasification Unit (FSRU) and LNG import terminal with daily regasification capacity of 500 million cubic feet.

SPIL is a privately-held Singapore-registered company that is 78%-owned by the family of Mr Muhammed Aziz Khan. In 2016 SPIL acquired Bangladesh-registered Summit Corporation Ltd (SCL) in a transaction that was financed primarily by International Finance Corporation, the World Bank's private sector arm. SCL holds various infrastructure assets in Bangladesh. In 2019, JERA Co., Inc., Japan's largest power generation company, acquired a 22%-stake in SPIL and remains its second largest shareholder to date.

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