Tree plantations and carbon credits: Bangladesh on the verge of earning $1 billion annually

Bangladesh could earn nearly one billion (1 billion) US dollars annually by selling carbon credits from a massive initiative to plant 250 million trees nationwide, a potential that was highlighted in a recent government climate finance budget report, citing World Bank calculations.

However, despite this huge environmental and economic potential, the report warns that Bangladesh has significant gaps in its legal framework and technical capacity to enter international carbon markets.

Prime Minister Tarique Rahman officially inaugurated the program to plant 250 million trees across the country over the next five years on June 13. The green initiative aims to strengthen environmental protection and combat the severe impacts of climate change.

One of the biggest attractions of this five-year mega-initiative is the opportunity to generate a large amount of carbon credits and sell them on the international market.

Carbon credit is basically an international measure of reducing greenhouse gas emissions. If one ton of carbon dioxide or its equivalent harmful gas is removed, reduced or prevented from the atmosphere, it is considered as 'one carbon credit'. If 250 million new trees are planted in Bangladesh, it will absorb a huge amount of carbon dioxide from the atmosphere, which can be sold on the international market as carbon credits.

The carbon market is currently growing rapidly around the world to combat climate change. In 2025, revenue from the global carbon pricing market stood at US$107 billion, up about 2 percent from the previous year, following a continuation of 2023-24.

The total market capacity is currently around $250 billion. It is estimated that this market will reach $1 trillion by 2050, with the main investment coming from the private sector.

Despite being one of the world's lowest greenhouse gas emitters, Bangladesh is one of the most vulnerable countries to climate change. Climate experts say that if this project is implemented properly, Bangladesh can earn a huge amount of foreign exchange from global carbon trading.