FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT MECHANISM (CDM) UNDER CD4CDM INITIATIVE Date: 8-9 April, 2008 Venu

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

2. Presentation Outline • 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

3. MITIGATION ADAPTATION Mitigation involves attempts to slow the process of global climate change by lowering the level of green house gases in the atmosphere Adaptation involves developing ways to protect people and places by reducing their vulnerability to climate impacts. Human Response to Climate Change web: www.wasteconcern.org

4. 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

5. 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

6. 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

7. 100 92 90 80 70 60 60 50 Total Market 40 CDM Market 30.098 22 30 17 20 10.864 5.257 2.638 10 0 2005 2006 2007 2008 Global Carbon Market at a Glance 2005-2007 and Projected 2008 Billion US $

8. Potential CDM projects in Different Sectors

9. Potential Sectors for CDM Project in Bangladesh Waste Energy

10. SUMMARY OF THE CURRENT CDM PROJECT PORTFOLIO

11. Investment Opportunity from CDM maximum minimum

12. 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.

13. 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.

14. THANK YOU