FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT MECHANISM (CDM) UNDER CD4CDM INITIATIVE
Date: 8-9 April, 2008Venue: LGED Bhaban, Dhaka
Presented by A. H. Md. Maqsood Sinha Waste Concern
Introduction to CDM Opportunities in Bangladesh
web: www.wasteconcern.org
Presentation OutlinePresentation Outline
1. What is CDM and How It works?2. Global Market Size of CDM3. Potential Sectors for CDM in Bangladesh?4. Way Forward to Promote CDM
web: www.wasteconcern.org
Human Response to Climate Change
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.
WHAT IS CDM?
WHAT IS CDM?
web: www.wasteconcern.org
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: 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
How Does CDM Works?How Does CDM Works?
web: www.wasteconcern.org
Global Carbon Market at a Glance 2005-2007 and Projected 2008
Bill
ion
US
$
10.864
2.638
30.098
5.257
60
17
92
22
0
10
20
30
40
50
60
70
80
90
100
2005 2006 2007 2008
Total MarketCDM Market
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 andManufacturing
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
Potential Sectors for CDM Project in Bangladesh
EnergyEnergy
WasteWaste
Sl. Name Estimated Emission Reduction
Tons of CO2e/ Yr.
Estimated Emission Reduction
Tons of CO2e/ 10 Yr.
1 REGISTERED 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
892,590
800,000
2 UNDER 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
100,000
50,000
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
•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
30,400
135,000
3,22,000
1,10,000
50,000
80,000
1,65,000
3,04,000
4 PROJECTS IN CONCEPT STAGE (1)
•Poultry Waste Management Project (Waste Sector)
Total Emission Reduction from Current 8 Projects 300,859 3,008,590
SUMMARY OF THE CURRENT CDM PROJECT PORTFOLIO
Investment Opportunity from CDM
Investment Opportunity from CDM
0 20 40 60 80 100 120 140 160
Project Cost
Investment can beobatined from CDM
Investment can beobatined from CDM
Investment can beobatined from CDM
Investment can beobatined from CDM
Project Cost
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
Top Related