What does this setback mean for Bangladesh's energy transition ambitions? Bangladesh's tax structure is creating significant barriers to the adoption of renewable energy technologies, favoring fossil fuels over clean energy sources. The country's fiscal regime imposes higher duties on equipment and technologies essential for integrating renewable energy into the power system, making it more expensive for investors to adopt these alternatives. This policy imbalance undermines Bangladesh's commitment to expanding renewable energy and reducing its reliance on fossil fuels. The study found that imported liquefied natural gas (LNG) enjoys the most favorable tax treatment among major energy categories, facing a total tax incidence of only 9.5 percent. In contrast, solar panels, batteries, grid equipment, and electric vehicles face effective tax rates ranging from 61 percent to 93 percent. This creates an uneven playing field for investment decisions, influencing electricity generation choices, distributed renewable energy projects, industrial rooftop solar installations, and electric mobility adoption. The study's findings have significant implications for ESG considerations in Bangladesh. The country's reliance on fossil fuels contributes to greenhouse gas emissions and climate change. By rationalizing taxes on renewable energy technologies and increasing budgetary support for these alternatives, Bangladesh can reduce its carbon footprint and align with international sustainability standards such as the Paris Agreement. However, the current policy structure creates significant risks for investors and undermines the government's commitment to sustainable development.