Transcript CDM opportunities in Bangladesh - Capacity Development for the

Presented by
A. H. Md. Maqsood Sinha
Waste Concern
Introduction to CDM Opportunities in Bangladesh
FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT
MECHANISM (CDM) UNDER CD4CDM INITIATIVE
web: www.wasteconcern.org
Date: 8-9 April, 2008
Venue: LGED Bhaban, Dhaka
Presentation Outline
1.
2.
3.
4.
What is CDM and How It works?
Global Market Size of CDM
Potential Sectors for CDM in Bangladesh?
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
WHAT IS CDM?
 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
How Does CDM Works?
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
100
92
90
80
Billion US $
70
60
60
50
40
Total Market
CDM Market
30.098
22
30
17
20
10.864
2.638
10
5.257
0
2005
2006
2007
2008
Potential CDM projects in Different Sectors
Sectors
Potential 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
Waste
Energy
SUMMARY OF THE CURRENT CDM PROJECT PORTFOLIO
Sl.
Name
1
REGISTERED PROJECTS (2)
• Composting of Organic Waste in Dhaka (700 tons/day)
•Landfill Gas Extraction and Utilization at Matuail Landfill Site,
Dhaka
2
89,259
80,000
892,590
800,000
10,000
5,000
100,000
50,000
13,500
135,000
32,200
11,000
3,22,000
1,10,000
5,000
50,000
8,000
16,500
30,400
80,000
1,65,000
3,04,000
300,859
3,008,590
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
•Bundled Biogas projects in Rural Areas
•Bundled 50,000 Solar Home System in Rural Areas
•Bundled Rural Composting Project
4
Estimated Emission
Reduction
Tons of CO2e/ 10 Yr.
UNDER VALIDATION (2)
• 30,000 Solar Home Systems in Non-Grid Areas
• Promotion of 1,00,000 Compact Fluorescent Lamps in Rural
Areas
3
Estimated
Emission
Reduction
Tons of CO2e/ Yr.
PROJECTS IN CONCEPT STAGE (1)
•Poultry Waste Management Project (Waste Sector)
Total Emission Reduction from Current 8 Projects
Investment Opportunity from CDM
Investment can be
obatined from CDM
maximum
Investment can be
obatined from CDM
Investment can be
obatined from CDM
minimum
Investment can be
obatined from CDM
Project Cost
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.
THANK YOU