Country Presentation: Bangladesh

Developing a Regional Workshop for the CDM in the Asia Pacific Region
30-31 March 2006

Development Phase of CDM in Bangladesh

Problems Initially there was no CDM activity in Bangladesh and it was a new idea Lack of capacity, knowledge and experience on CDM No DNA existed in the country to promote CDM

Intervention of UNDP

In 2002, for the first time in Bangladesh UNDP under a project (funded by Thematic Trust Fund) assisted the government of Bangladesh to promote CDM. Major activities were: Establishment of DNA Preparation of Baselines, PIN, PDD, Validation of 2 projects

Contd.

Development Phase of CDM in Bangladesh

Problems Less Attractive to Investors: Country Risk & Lack of Trust

Delayed project implementation process: Different from Conventional Project Approval Method

Intervention of UNDP

UNDP also facilitated the process of linking investor and building trust in first 2 projects.

RESULT

Attracted US $ 10 million for the two projects Due to the presence of UNDP in our project has removed the barrier. Attracted buyers to purchase the CERs. UNDPs support in our project was crucial element for investors confidence in our project.

CDM Projects Developed UNDP Support

Landfill Gas Extraction and Utilization at the Matuail Landfill site, Dhaka, Bangladesh
Composting of Organic Waste in Dhaka, Bangladesh

Contd.

Why this Project?

Solutions
Land Fill Gas Recovery

Problems
Spreading more than 40 Disease Methane Emission (Green House Gas) Bad Odor

Waste Generated
3200 tons/ day

Municipality Collects & transports1200-1400 tons/ day

40% of total generated waste

700 ton/day capacity Composting Plant LEACHATE Polluting Ground & Surface Water

Crude unsanitary dumping method

CDM Projects to Solve the Waste Disposal Problem

PROBLEMS
1200 Tons/day Disposed by Crude Dumping
Costing US $ 2.1 million /Year
Water Pollution Spread of Disease Vectors Green House Gas Emission Odor Pollution

Baseline Scenario before CDM Projects

No financial investment, required from GoB 1200 Tons/ day Controlled Disposal

BENEFITS
Reduction of 1 million tons CO2e (2006-2012)
50,000 TONS/YEAR COMPOST 3-6 MW Electricity from Landfill Gas Saving US $ 31.5 million of waste disposal cost of DCC in 15 years at the dumpsite. Saving US $ 1 million per year by collecting 700 tons/day waste free of charge for the municipality through the CDM Project. Extension of Life of Matuail Up to 2020 Job Creation for 1000 People Environmental improvement of Matuail (Less odor, leachate, disease vectors)

CDM BASED PROJECT

Landfill Gas Collection and Utilization 700 Tons/day Capacity Compost Plant Increasing the height of Matuail Dump Site

700 Tons/day organic waste Collected for Composting project

CDM Scenario of two projects (LFG and Composting Project in Dhaka

Global Impact
Reducing Green House Gas
Attracting Foreign Direct Investment (FDI) Complying with the MDG

Local Impact
Reducing ground and surface water pollution thus reducing health hazards

Reducing poverty by creating 1000 new jobs for urban poor

Reducing Solid Waste Management cost of municipalities

Providing safe and better working condition for the informal sector

IMPACT OF THE PROJECT

Providing 3-6 MW power to the city and producing 51000 tons of organic fertilizer per year.

Raises public awareness on Solid Waste Management and recycling

Helping poor farmers and Improves the organic matter content of the soil

Enhancing the life of the Dumpsite upto 2020

Complying with four out of eight of the Millennium Development Goals (MDGs), such as poverty reduction, promoting gender equality and women empowerment, ensuring environmental sustainability and developing global partnerships for development.

Present Status Till March, 2006

Landfill Gas Extraction and Utilization at the Matuail Landfill site, Dhaka, Bangladesh
This project has been registered on September 17, 2005. This is the first CDM project in Bangladesh.

The work will start after signing of agreement with the Dhaka City Corporation. The agreement in under negotiation.

Present Status Till March, 2006

Composting of Organic Waste in Dhaka, Bangladesh Validation completed and presently submitted for registration. This will be the first composting project globally using CDM mechanism Signed 15 years agreement with Dhaka City Corporation (DCC) on January 24, 2006, for collection and composting of 700 tons of organic waste per day from DCC area with no financial involvement from the government. This project will be operational within one year from the date of registration with the UNFCCC.

End of 1st Part

Response of Government of Bangladesh Regarding CDM

The government has set up a two tier Designated National Authority (DNA)

The first tier, located at the Ministry of Environment and Forest, is the secretariat or operational body of the DNAperforms all CDM related activities including giving preliminary approval of CDM projects through the CDM Committee.
The second tier, known as the CDM Board- gives the final endorsement of the approved projects. The Principal Secretary to the Prime Minister is head the CDM Board. Since the Principal Secretary has jurisdiction over all secretaries of different ministries of the government, it is expected inter-ministerial coordination will be easily achieved.

Contd.

Response of Government of Bangladesh Regarding CDM

Apart from establishment of DNA, the government has also established national procedures for evaluation and approval of CDM projects and developed interim sustainable development criteria for the evaluation of CDM projects. The Government plans for a study on National Strategy for the Development of CDM. The study will assess the issues and opportunities presented by potential international markets for GHG (greenhouse gases) offset through the CDM, and to evaluate processes and methodologies to facilitate implementation of CDM in Bangladesh.

Potential Sectors for CDM in Bangladesh

Methane recovery from landfill with or without electricity generation Composting of urban solid waste Biogas from a wide variety of wastes, such as (a) poultry droppings (b) tannery waste (c) effluent from food processing industries (d) human excreta, and (e) sewage, to replace fossil fuel directly or after electricity generation Solar home systems in off grid areas

Efficient brick manufacturing

Sugar cogeneration

Other Pipeline CDM Projects

Presently 2 large-scale and 9 small scale projects under pipelines and 1 under validation. 2 Energy Sector Projects Developed by Bangladesh Center for Advanced Studies

Project

CERs (CO2 eq. Emission Reduction (tons) Total 60,750 tons CO2 Equivalent in eight years total 39,353 tons CO2 Equivalent in eight years

Total Investment

SHSs in rural offgrid areas Efficient lighting in rural areas (using CFL)

US $ 15.33 million

US $ 3 million

Contd.

International Assistance for Bangladesh in CDM

Develop national capacities (both public and private) on CDM modalities, opportunities and procedures DNA Other Government Institutions

Potential private sector and NGO leaders

Improve the capacities of national professionals on CDM technical issues, baseline studies, research and monitoring. Technical assistance to project participants in project preparation, developing business plan and making CERs purchase agreement with potential investors and buyers.

Thanks.