Bangladesh University of Professionals (BUP)

Course Name: Low Carbon and Resilient Development

Course Code: MDS 510

Group No: 02

Policy and Actions Towards Low Carbon Emissions:

Bangladesh Perspective

Submitted to:
Prof. Dr A.H.M Abdul Baqee
Adjunct Faculty
Department of Development Studies
Faculty of Arts and Social Sciences (FASS)
Bangladesh University of Professionals (BUP)

Submitted by:
1. Md Tariqul Islam (2112091002)
2. Marium Nur (2112091024)
3. Md. Akramul Alam Nayeem (2112091026)
4. Towheedul Alam (2112091028)
5. Alic Rangsa (2112091034)
6. Likhon Kanti Bhowmick (2112091038)
Masters in Development Studies (MDS), Section B
Introduction
Bangladesh has recorded steady economic growth in the recent years and the same time
Greenhouse gas (GHG) per capita are 0.96 tCO2 which has increased by 16% from 2012 to 2017.
This report indicates negative effect on climate of Bangladesh against economic growth.
Effective and sustainable, realistic adaptation, mitigation and financial policies targeting NDC
2030 for Bangladesh should be established to maintain a clean environment for the future
generation.

Name: Marium Nur Roll: 2112091024

Main sources of carbon dioxide emissions

Carbon dioxide emissions come from both natural and anthropogenic sources. Major sources are
describing below:
Human Sources
Human causes burning of oil, coal, and gas, and deforestation. Coal, natural gas, land use
changes as well as some industrial operations like cement production.

Fossil fuel combustion/use

The combustion of fossil fuels is the main human source of carbon dioxide emissions. When
these fuels are burned, energy is released, which is often converted into heat, electricity, or
transportation power.

Electricity/Heat sector
The economic sector that produces the most man-made carbon dioxide emissions is electricity
and heat generating. The majority of power in almost all developed countries comes from the
combustion of fossil fuels (around 60-90%).

Transportation Sector
The transportation sector emits the second-highest amount of anthropogenic carbon dioxide. In
2010, transportation of products and people around the world accounted for 22% of all fossil
fuel-related carbon dioxide emissions. Road transportation is responsible for 72% of the sector's
CO2 emissions.
Natural Sources
Carbon dioxide is not only produced by humans, but it is also released into the atmosphere by
natural processes. Natural sources of carbon dioxide emissions include the oceans, soil, plants,
animals, and volcanoes.
Adaptation, Actions and Policy: Addressing and reducing vulnerability to climate
change.

Impacts of Climate Change in Bangladesh:

a. Due to climate change rise threatens the lives and livelihoods on coastal areas as 60% of land
will remain five meters above sea level and 13.3 million people in Bangladesh will internally
displaced by 2050.
b. By 2050 a third of agriculture GDP will lost and USD 66m potential losses in fisheries sector
studied by WB.
c. Bangladesh would experience 2% annual losses of its GDP by 2050 and continue to rise up
to 9.4% by 2100.

Actions: Nationally Determined Contribution (NDC)

I. To enhance climate adaptation activities, Bangladesh has established innovative funds nearly
USD 400m.
II. Bangladesh submitted the National Adaptation Programme of Action (NAPA) in 2005
(revised in 2009) and prepared a climate change action plan (the Bangladesh Climate Change
Strategy and Action Plan) in 2009.
Among the first priorities for adaptation in Bangladesh are measures to further improve the
country’s disaster response and management, as well as ways to foster resilience against climate
change. Bangladesh is already considered one of the leading countries in these regards.

Name: Alic Rangsa Roll: 2112091034

Mitigation, Actions and Policies: Reducing emission to limit global temperature

increase

Emissions Overview:
Bangladesh’s GHG emissions have increased significantly – by 218% between 1990 and 2017.
The unconditional emissions reduction target is 5% below business – as – usual (BAU) by 2030
or 15% below BAU by 2030, with international support.

Energy-related CO2 emissions

by Sector: GHG emissions huge
increase are seen in the energy and
waste sectros at 587% and 778%
respectively albelt from a very
low base. Though Bangladesh set
unconditional and conditional
emission 5% and 15% below
respectivley but targets only
consider engery-related emissions from power, transport and industry sectors, which are
expected to represent 69% of total emissions in 2030. For other sectors, actions based on
conditional contributions are mentioned in the NDC.

Energy overivew:
Energy Mix: Fossil fuels still make up 77% of Bangladesh’s energy mix and natural gas use has
come than double over the last two decades to meet demand. Thus, despite the increase in the
share of renewables in total primary energy supply over the period, the carbon intensity of the
energy mix has increased by 83%.

Solar, Wind, Geothermal and Biomass Development:

 Solar and biomass together account for 0.47% of Bangladesh’s primary energy. Modern
biomass dominates with a share of 0.4% while solar has only increased marginally since 2013
through the commissioning of grid-tied renewable energy, rooftop solar and utility scale projects
which have increased from 2018-2020.

Carbon intensity of the Energy Sector: Carbon intensity means how much CO2 is emitted per
unit of energy supply. For each kilowatt hour electricity 504 gCO2 is emitted in Bangladesh. In
Bangladesh carbon intensity has consistently increases since 1990 and has almost constant at ~45
t CO2 /TJ over the last five years. Analysis show that in Bangladesh energy supply per capita is
12 GJ/capita which is closely related to economic development, climate conditions and the price
of energy. But is has increased by 18% over the five years 1024 – 2019 from lower base to reach
12 GJ/capita in 2019. The energy intensity of the economy decreased by 11.1% to reach 2.29
TJ/Million USD 2015 GDP, mainly due much higher growth in GDP than in energy
consumption in the given period.

Actions or Policy assessment:

1. As per Bangladesh Energy Policy 2008 need to increase the percentage of renewable energy
in the energy mix to 10%. Tax exemptions for the production of renewable energy
equipment and project investors.
2. The Eighth Five-Year-Plan 2020-2025 aims to have aggressive effort in the generation of
solar and wind power.
3. Electricity production contributes to 34% CO2 emission in Bangladesh. Worldwide, coal use
for power generation needs to peak by 2020, and between 2030 and 2040, all the regions of
the world need to phase out coal-fired power generation.
4. In 2030, global CO2 emissions need to be 45% below 2010 levels and reach net zero by
2050.
5. The share of fossil fuels globally needs to fall of 67% of global total primary energy by
2030 and to 33% by 2050.
Name: Md. Akramul Alam Nayeem Roll: 2112091026

Mitigation, Actions and Policies: Reducing emission to limit global temperature

increase

Transport Sector
Emissions from the transport sector in Bangladesh are on the rise and currently represent 14% of
energy-related CO2 emissions. The transport sector is completely dominated by fossil fuel, with
oil contributing up to 72.3% of the total transport energy mix, and natural gas meeting the
remaining energy need. For staying within a 1.5°C limit, passenger and freight transport need to
be decarbonized.

Industry Sector
Industry-related emissions make up more than a
third of CO2 emissions (33%) and 18% of
energy-related CO2 emissions in Bangladesh.
Industrial emissions need to be reduced by 75-
90% from 2010 levels by 2050.
Agriculture Sector
Bangladesh’s agricultural emissions are mainly from rice cultivation (24.8 MtCO2e) and
digestive processes in animals (24.5 MtCO2e), accounting for 66% of agricultural CO2
emissions. Emissions are also from livestock
manure (19%) and use of synthetic fertilizer
(11%).In Bangladesh, the largest sources of GHG
emissions in the agricultural sector are rice
cultivation, digestive processes in animals
(enteric fermentation), livestock manure and the
use of synthetic fertilizers. A shift to alternate
wetting and drying irrigation during rice cultivation, more efficient use of fertilizers, changes to
the diets of livestock, manure management, increased organic farming and less fertilizer use can
help reduce emissions.

Actions and Policy Assessment

 Phase out fossil fuel cars according to the Eighth Five-Year-Plan (2020-2025) also supports a
green transportation system for Bangladesh by laying out a plan for banning old vehicles,
offering fiscal incentives for electric vehicles, and issuing penalties for violating
environmental codes.
 The Energy Efficiency and Conservation Master Plan aims to reduce primary energy
consumption per GDP for all sectors by 15% in 2021 and 21% in 2030.
 Target for net-zero deforestation which is relates to Bangladesh aims to bring 24% of land
under tree cover by 2025 (from 16% in 2010) according to the Eighth Five-Year-Plan include
conserving natural forests, restoring degraded state forests, creating a coastal greenbelt, and
strengthening forest and tree monitoring and information systems.
 Scaling up biomass production from sugar.
 Constructing express highways to reduce urban congestion.
 Introducing/expanding mass rapid transit systems.
Name: Md Tariqul Islam Roll: 2112091002

Finance (Making Finance Flows Consistent with Climate Goals):

Bangladesh spent USD 1.7bn on fossil fuel consumption subsidies in 2019. A total subsidy
equivalent to USD 1.15bn for the gas sector and USD 1.14bn for the power sector are planned in
the 2019- 2020 budget. The country has no explicit carbon price. Investment in green energy and
infrastructure needs to outweigh fossil fuel investments by 2025.

Fiscal Policy Levers:

In 2020, Bangladesh provided USD 968m in electricity consumption subsidies, USD 449m in
gas consumption subsidies, and USD 7m in oil consumption subsidies, for a total amount of
nearly USD 1.424bn. The 2019-2020 financial budget included subsidy increases for both
electricity and gas compared to the previous year. A total subsidy of BDT 96bn (equivalent to
USD 1.15bn*) was reported for the gas sector and one of BDT 95bn (equivalent to USD 1.14bn)
for the power sector. This subsidy includes support for land acquisition, infrastructural
development, resettlement and feasibility studies. In addition, the planned electricity subsidy was
further reduced to BDT 74bn (USD 893bn) of achieved budgetary support to the electricity
sector – this whole amount is considered to be a fossil fuel subsidy in the context of this analysis.
As such, the country’s electricity system is almost entirely fossil fuel-based. The subsidy trends
are likely to continue in the coming years.
The budget for FY 2021-22 shows the power and fuel sector will receive the second highest
share (20.4%) in the Annual Development Programmed allocation. The consumption subsidies
reported in the IEA dataset include support for the state-owned utility Bangladesh Power
Development Board (BPDB). In fiscal year 2018-19, the government subsidy that compensated
BPDB for selling power below cost to avoid a major loss and cash flow shortfall amounted to
BDT 80bn (USD 936m). BPDB expected that the subsidy required in 2019-20 would rise to
BDT 90bn (USD 1.1bn). The almost-completed Payra coal-fired power plant is reportedly
receiving capacity payments of BDT 16bn (USD 19m) a month, and this was estimated to
amount to USD 230m for the year 2019.
The BPDB also gets government support in the form of cash loans. According to CPD's 2021
report, the very high electricity subsidies are, in part, driven by the power sector’s over-capacity
issues. For example, as of 2 June 2021, 48.4% of generation capacity remained unutilised and, as
a consequence, the BPDB would need a significant amount of subsidy to meet its costs.
Bangladesh is one of the non-reporting jurisdictions with respect to tax expenditure (revenue
foregone) data. This lack of transparency makes it difficult to estimate the exact extent of public
support directed to fossil fuels in the form of favorable tax treatments.
However, the following tax concessions represent some of the tools currently used to support
various economic activities, including fossil fuel-intensive ones:
 Foreign investors in Bangladesh receive a tax rebate for the first 5-7 years, depending on the
nature of the industry.
 In 2019, the National Board of Revenue (NBR) slashed VAT on coal imports from 15% down
to 5% until 2025. This is the only tax applied on coal imports.
 The government selectively exempts fossil fuel projects or any other project from paying
import duty, regulatory duty, VAT, or supplementary duty on importing plant and equipment,
erection materials, machinery or machinery equipment. For example, the Ministry of Finance
issued a Customs Statutory Regulatory Order (SRO) (#126- ain/2021/15/customs dated 24
May 2021) for the Coal-Fired Rampal Power Plant for waiving all the duties with the
condition that the company is not misusing the SRO.

Coronavirus Recovery:
Misusing Asian Development Bank (ADB) has supported Bangladesh with a loan of USD 5.8m
to recover from the COVID-19 pandemic for the period 2021-2023. This loan will be directed
towards a wide range of projects related to rural development and the energy sector with a focus
on renewable energy, rural electrification, energy efficiency, transport, water supply, and urban
infrastructure to develop climate-resilient, green urban space.
Name: Towheedul Alam Roll: 2112091028

Public Finance
Governments steer investments through their public finance institutions including via
development banks, both at home and overseas, and green investment banks.
As a developing country, Bangladesh does not have any financing obligation under the United
Nations Framework Convention on Climate Change (UNFCCC), and only limited obligations to
publish data on projects supported domestically. Bangladesh Development Bank does not
publish a list of the projects it finances, nor provide information on any guidelines or restrictions
regarding financing fossil fuel projects.

Financial Policy and Regulation

Through policy and regulation governments can overcome challenges to mobilizing green
finance, including real and perceived risks, insufficient returns on investment, capacity and
information gaps.
The Bangladesh Bank is the primary enabler of green finance in Bangladesh. It has introduced
priority lending requirements to rural enterprises and for green finance. Some major initiatives
taken by the bank are –
 In January 2016, the Bangladesh Bank set a mandatory 5% credit quota for direct green
finance out of the total loan disbursement of all banks and financial institutions. The lending
requirements are linked to capital adjustments and preferential refinancing opportunities.
 In 2009, the Bangladesh Bank established a re-financing scheme worth BDT 2 billion to
support green products such as biogas facilities, solar energy and effluent treatment plants
(ETP) for the development of the renewable energy, green industry and environment-friendly
sectors.
 The Bangladesh Bank has also prepared environment risk management (ERM) guidelines for
banks and financial institutions for assessing environmental impacts before financing any
projects and has given directives to banks and financial institutions to establish a sustainable
finance unit (SFU) in their head offices.

National Determined Contribution (NDC): Finance

Bangladesh has outlined specific adaptation priorities in its NDC, and is contributing to the Paris
Agreement through its leadership in adaptation. It does this, on top of defining its mitigation
contribution to reduce CO2 emissions. The latest NDC of Bangladesh which has been published
in August, 2021 is illustrated below in chart shortly –

Conditionally Conditional target to reduce 15% of CO2 emission from

BAU level by 2030 with support of international finance.

Adaptation: USD 42 billion between 2015-2030

Investment needed
Mitigation: USD 27 billion between 2011-2030

Adaptation: Food security, disaster management, urban

resilience, flood management.
Actions
Mitigation: deployment of clean coal technology, scaling
up renewables, solar homes, and urban traffic
management
International Market
Mechanism Not applicable

It is important to recognize that Bangladesh has aspirations to become a middle income country
by 2021 and that once it stops being classified as a Least Developed Country, certain funding
options will no longer be available to it. As well as considering funding sources, Bangladesh
should look to make maximum benefit from collaborations and groups that can help facilitate
access to funding. The Government of Bangladesh will continue to commit resources to climate
change relevant strategies. The private sector and NGOs can also contribute significantly to these
climate change-related activities through public-private partnerships. Banks and Financial
Institutions in Bangladesh will continue to play a vital role in financing low-carbon and climate-
resilient projects and programmes through their separate Green Banking window. However, the
full implementation of the strategic mitigation actions is conditional on the support of
international stakeholders. The implementation of the prioritized policies and measures assume
the continued use of existing and planned national and international financial sources through the
use of climate finance and international market mechanisms where appropriate.

Name: Likhon Kanti Bhowmick Roll: 2112091038

Recommendation
Despite contributing less than 0.48 percent of global emissions, Bangladesh is one of the most
climate-vulnerable countries.

If you want to emit carbon be personally aware –

 Use public transportation

Practice using public transport. Experts believe that being able to drive without a car would
play a major role in reducing carbon emissions.
 Cut down on red meat
Cattle cause 14 percent of the world's greenhouse gases. so milk and meat should be reduced
from the diet to reduce greenhouse gas emissions.
 Think before you buy
One pair of jeans requires 781 liters of water. So instead of buying new clothes all the time,
you should make it a habit to wear old clothes properly.
 Reduce energy wastage
Carbon emissions can also be reduced by properly selecting household electronics or home
appliances. You should buy things that can run on low power consumption or fuel
consumption.

Government and Global Initiatives Are Needed

 Various measures have been taken, including the country's NDC update, the cancellation of
10 coal-fired power plants with a foreign investment of 1.2 billion US dollars, and the
withdrawal of 40 percent of national energy from renewable sources by 2041.
 We are currently preparing a national adaptation plan. We have recently submitted an
ambitious and up-to-date NDC. '
 Bangladesh should establish a robust environmental policy for all economic sectors,
including the industrial, leatherworking, chemical manufacturing, and shipbuilding.
Technological advancement in renewable energy integration would lead to lower carbon
emissions rates for electricity generation in Bangladesh.

Global Initiatives
 Developed countries should keep their 50:50 balance between adaptation and mitigation and
fulfill their commitment to provide US ১০ 1 trillion annually.
 Developed countries should disseminate clean and green technology to the most vulnerable
countries at affordable prices and also consider the development needs of CVF countries.
 Losses must be addressed, including sharing global responsibilities for migrants displaced
by rising sea levels, rising salinity, river erosion, floods and droughts.

Limitation
Government initiatives, political issues, fund-raising strategies, and communicating with
development partners are all systems that Bangladesh lacks. A more detailed plan is required.
The private sector in our capitalist society is uninterested in social development projects.
However, in order to achieve the goal, they must be involved. On the other side, the more time
spent adjusting carbon emissions, the more arguments will arise, and the greater the risk of
climate change will have to be addressed. The only way to prevent this danger is for the
developed nations to come together and form an agreement.

Conclusion
Bangladesh has invested more than $10 billion in climate change actions – enhancing the
capacity of communities to increase their resilience, increasing the capacity of government
agencies to respond to emergencies, strengthening river embankments and coastal polders (low-
lying tracts of lands vulnerable to flooding). On a global scale, negative emissions technologies
are expected to play a role from the 2030s onwards, compensating for remaining positive
emissions. The CAT’s evaluation of NDCs shows the resulting temperature outcomes if all other
governments were to put forward emissions reduction commitments with the same relative
ambition level.