B Mirror Report: Domestic and foreign companies are showing growing interest in Bangladesh’s carbon market. Several investment proposals have been submitted. These proposals cover the forestry, agriculture, and energy sectors. Feasibility studies have already started.
The government says the projects will help meet national carbon reduction targets. Officials also say the initiatives will promote environmentally friendly development in key sectors.
Companies from Australia, South Korea, and Japan are involved. Australia’s ATEC, South Korea’s EWC, and Japan’s Mitsui and Sumitomo are assessing project feasibility. Two international NGOs are also involved. They are Eco-Social Solutions and Value Nature Ventures. Three local NGOs have joined as well. They are Aranyak Foundation Bangladesh, Mati Organic Limited, and Bangladesh Bandhu Foundation. The Institute of Water Modeling, a government body, is also taking part.
The final investment amount will be decided after the feasibility studies. Australia’s ATEC has indicated a possible investment of up to 75 million dollars.
Six organizations have proposed signing a memorandum of understanding with the Forest Department. These proposals focus on afforestation. The organizations include Eco-Social Solutions, Value Nature Ventures, Bangladesh Bandhu Foundation, Aranyak Foundation, Mati Organic Limited, and the Institute of Water Modeling.
Japan’s Mitsui plans to introduce the Alternate Wetting and Drying method in agriculture. The project will cover 250,000 hectares of land. The method reduces water use and cuts methane emissions. Officials say it can also increase crop production by 10 percent.
Another Japanese company, Sumitomo, plans to reduce methane emissions by preventing gas line leakage. Meanwhile, Australia’s ATEC and South Korea’s EWC aim to promote clean cooking stoves. The goal is to reduce reliance on gas for cooking.
The Forest Department says coastal afforestation will create 116,000 hectares of new land within five years. These new lands will be used for carbon trading through tree plantation.
Deputy Chief Conservator of Forests (Planning) Rakibul Hasan said several companies want to invest in carbon trading. He said afforestation will be the main focus. Investments will follow two models. These are direct investment and public-private partnership.
He said investors will first assess how much land can be planted. They will also estimate how much carbon can be absorbed. Based on this, a Project Design Document will be prepared.
Rakibul Hasan said the government will provide land for the projects. Private investors will implement the work. The carbon absorbed will be sold in the carbon market. The share of benefits will be fixed through negotiation.
Before project approval, a technical committee will review the proposals. The committee will check whether local communities were consulted. It will also review public hearings and compliance with government guidelines.
The government formed the Designated National Authority in June last year. The body oversees carbon trading policy and project approval. It operates under the Ministry of Environment, Forest and Climate Change. The ministry secretary heads the authority.
Carbon emissions are a major cause of global warming. Industrialized countries produce most emissions. China is the largest emitter, accounting for 35 percent of global emissions. The United States ranks second. Other major emitters include India, Russia, Japan, Canada, and Saudi Arabia. Bangladesh contributes only 0.48 percent.
Carbon trading is a market-based system to reduce emissions. Authorities set limits on how much carbon can be released. Countries or companies that exceed the limit must buy carbon credits. These credits are purchased from those that reduce or absorb emissions.
