Presented by
A. H. Md. Maqsood Sinha
Waste Concern
Introduction to CDM Opportunities in Bangladesh
FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT web: www.wasteconcern.org
MECHANISM (CDM) UNDER CD4CDM INITIATIVE
Date: 8-9 April, 2008
Venue: LGED Bhaban, Dhaka

1.
What is CDM and How It works?
2.
Global Market Size of CDM
3.
Potential Sectors for CDM in Bangladesh?
4.
Way Forward to Promote CDM web: www.wasteconcern.org

Human Response to
Climate Change
ADAPTATION
Adaptation involves developing ways to protect people and places by reducing their vulnerability to climate impacts.
MITIGATION
Mitigation involves attempts to slow the process of global climate change by lowering the level of green house gases in the atmosphere web: www.wasteconcern.org

 Clean Development Mechanism (CDM) is an important component of the Kyoto Protocol (Article
12)
 Clean Development Mechanism known as CDM.
Which allows 39 industrialized countries to achieve part of their Green House Gas (GHG) emission reduction target through investment in projects in developing countries that reduce GHG emission from the atmosphere. web: www.wasteconcern.org

Project based carbon trading (CER/VER) between industrialized and developing countries
Investment $$
Industrialized country
Emission reduction credits (cer/ver)
Project Reducing
GHG emissions in developing country web: www.wasteconcern.org

CDM allows developing country entrepreneurs and others to get investment fund for doing projects, which reduce Green House Gas.
Two things are important in CDM, namely,
• The project proponent from developing country must prove that the GHG reduction would not have occurred in the absence of the project
• The project must promote sustainable development web: www.wasteconcern.org

Global Carbon Market at a Glance 2005-2007 and Projected 2008
70
60
50
40
30
100
90
80
20
10
0
10.864
2.638
2005
30.098
2006
5.257
60
2007
17
92
2008
22
Total Market
CDM Market

Potential CDM projects in Different Sectors
Sectors
Wastes
Energy
Buildings
(residential, commercial and government)
Agriculture
Forests
Industry and
Manufacturing
Mining
Transport
Potential projects/activities

Composting from municipal organic waste.

Landfill gas recovery and use for electricity generation.

Waste-to-energy conversion activities (e.g. biogas, biogasification).

Development of renewable energy sources (hydro, solar, wind and biomass).

Clean coal technologies

Fuel substitution measures.

Improvement in electricity transmission and distribution network.

Reduction of leakage in transport, handling and distribution of oil and gas.

Energy-efficient design of buildings including cogeneration.

Energy-efficient appliances.

Energy conservation measures.

Reuse of waste water

Use of renewable energy sources.

Solar and wind pumping

Improvement in use of agrochemicals (fertilizers and pesticides).

Reduction of energy use for irrigation through efficient pumps and demand-side management.

Improvement in cultivation practices to reduce methane emissions.

Afforestation and reforestation.

Cogeneration

Energy conversion and energy-efficiency measures.

Process modifications in order to lower emissions.

Change of feedstock in boilers (e.g. oil to gas).

Coal bed methane recovery.

Introduction of alternate fuels (e.g. biofuel).

Fuel-efficiency measures.

Improvement in public transport.

Urban planning and traffic management.

Waste
Energy

SUMMARY OF THE CURRENT CDM PROJECT PORTFOLIO
Sl.
Name Estimated
Emission
Reduction
Tons of CO2e/ Yr.
1 REGISTERED PROJECTS (2)
• Composting of Organic Waste in Dhaka (700 tons/day)
•Landfill Gas Extraction and Utilization at Matuail Landfill Site,
Dhaka
2 UNDER VALIDATION (2)
• 30,000 Solar Home Systems in Non-Grid Areas
• Promotion of 1,00,000 Compact Fluorescent Lamps in Rural
Areas
3 PIPELINE PROJECTS (7)
•Bundled Co-composting Projects in Eight Secondary Towns of
Bangladesh
•Bundled Efficient Brick Klin Project (Energy Efficiency)
•Bundled Efficient Steel Re-rolling Mills Project (Energy
Efficiency)
•Use of SPV Pumps for Irrigation (2,000 Pumps) Replacing
Diesel Pumps
89,259
80,000
10,000
5,000
13,500
32,200
11,000
5,000
•Bundled Biogas projects in Rural Areas
•Bundled 50,000 Solar Home System in Rural Areas
•Bundled Rural Composting Project
4 PROJECTS IN CONCEPT STAGE (1)
•Poultry Waste Management Project (Waste Sector)
Total Emission Reduction from Current 8 Projects
8,000
16,500
30,400
300,859
Estimated Emission
Reduction
Tons of CO2e/ 10 Yr.
892,590
800,000
100,000
50,000
135,000
3,22,000
1,10,000
50,000
80,000
1,65,000
3,04,000
3,008,590

Investment can be obatined from CDM
Investment can be obatined from CDM
minimum maximum
Project Cost
Investment can be obatined from CDM
Investment can be obatined from CDM
Project Cost
0 20 40 60 80 100 120 140 160

Current Issues with CDM in Bangladesh
 Low level of awareness and capacity amongst the public, private and financial sectors about CDM opportunities.
 Several time consuming permissions/clearance required to implement CDM projects in Bangladesh.
 Lack of financial and technological re sources to implement CDM projects.
 Transaction cost is high specially for small projects.
 Lack of enough baseline data.
 Many energy and waste sector based CDM projects require bundling approach. Identification of right institution for bundling of the projects is in some instances is a big barrier to implement the projects.

Way Forward
 We need to simplify this lengthy process/barrier.
 We need to enhance the capacity of the staffs and officials of public and private sector about CDM projects.
 Many projects such as composting, biogas, improved stove, forestry can be implemented having pro-poor elements.
 We need to identify these kind of projects which has both the adaptation and mitigation benefits.
 One stop approval process for CDM projects should be introduced
(CDM/BOI/ Bangladesh Bank/Line Ministry) to encourage CDM investment.
 There are many investors keen to invest in projects which has both mitigation and adaptation benefits.