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

Presentation Outline 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:

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:

 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. WHAT IS CDM? web:

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

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 How Does CDM Works? web:

Global Carbon Market at a Glance and Projected 2008 Billion US $ Total Market CDM Market

Potential CDM projects in Different Sectors SectorsPotential projects/activities Wastes  Composting from municipal organic waste.  Landfill gas recovery and use for electricity generation.  Waste-to-energy conversion activities (e.g. biogas, biogasification). Energy  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. Buildings (residential, commercial and government)  Energy-efficient design of buildings including cogeneration.  Energy-efficient appliances.  Energy conservation measures.  Reuse of waste water  Use of renewable energy sources. Agriculture  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. Forests  Afforestation and reforestation. Industry and Manufacturing  Cogeneration  Energy conversion and energy-efficiency measures.  Process modifications in order to lower emissions.  Change of feedstock in boilers (e.g. oil to gas). Mining  Coal bed methane recovery. Transport  Introduction of alternate fuels (e.g. biofuel).  Fuel-efficiency measures.  Improvement in public transport.  Urban planning and traffic management.

Potential Sectors for CDM Project in Bangladesh Energy Waste

Sl.NameEstimated Emission Reduction Tons of CO2e/ Yr. Estimated Emission Reduction Tons of CO2e/ 10 Yr. 1REGISTERED PROJECTS (2) Composting of Organic Waste in Dhaka (700 tons/day) Landfill Gas Extraction and Utilization at Matuail Landfill Site, Dhaka 89,259 80, , ,000 2UNDER VALIDATION (2) 30,000 Solar Home Systems in Non-Grid Areas Promotion of 1,00,000 Compact Fluorescent Lamps in Rural Areas 10,000 5, ,000 50,000 3PIPELINE 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 Bundled Biogas projects in Rural Areas Bundled 50,000 Solar Home System in Rural Areas Bundled Rural Composting Project 13,500 32,200 11,000 5,000 8,000 16,500 30, ,000 3,22,000 1,10,000 50,000 80,000 1,65,000 3,04,000 4PROJECTS IN CONCEPT STAGE (1) Poultry Waste Management Project (Waste Sector) Total Emission Reduction from Current 8 Projects300,8593,008,590 SUMMARY OF THE CURRENT CDM PROJECT PORTFOLIO

Investment Opportunity from CDM maximum minimum

 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. Current Issues with CDM in Bangladesh

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.

THANK YOU