Resume
Adopting Clean Development Mechanism for Effective Sustainable Development and Economic
growth in Bangladesh
Mohammad Shahjahan*, Helmut Yabar, Mizunoya Takeshi, Higano Yoshiro
Graduate School of Life and Environmental Sciences, Tsukuba University*shourav_bb@yahoo.com
1. Introduction:
Bangladesh is a low carbon dioxide emitting country. For instance the per capita carbon dioxide emission
is estimated at 0.2 ton/year, while the average for developing countries is 1.6 ton/year. The low Green
House Gas (GHG) emission status however provides no relief from the effects of global warming because
1.5 meter rise in sea level would inundate an area of 22,000 sq. km of Bangladesh, affecting 17 million
people (IPCC Report 2007). Obviously Bangladesh is likely to be one of the worst sufferers of global
warming. The other impacts global warming would be on: agriculture, bio-diversity and forestry, humanhealth, fisheries, drainage and fresh water.
The United Nations Framework Convention on Climate Change (UNFCCC) adopted an internationalframework to address global climate change. Parties to the convention agreed to stabilize GHG
concentrations in the earth’s atmosphere. In 1997, Bangladesh along with 160 other countries, completed
negotiations at the third session of the conference of parties (COP3) at Kyoto Japan to finalize a protocol
subsequently known as the Kyoto protocol. This protocol includes reduction targets and timetable for six
green house gases.
The Clean Development Mechanism under the Kyoto protocol to the UNFCCC has the potential to be aneffective tool in international law to encourage investment in renewable energy projects in developing
countries. The CDM is intended to be, inter alia, a vehicle for investment and technology transfer intodeveloping countries, such as Bangladesh to achieve “sustainable development” by enabling necessary
economic growth whilst also reducing GHG emission on global level. The research makes an attempt tounderstand the CDM and find out its opportunities in Bangladesh to achieve sustainable development.
2. Objective of the study:
Clean Development Mechanism (CDM) is one of the three market based emissions trading mechanisms
established by the Kyoto Protocol (KP) regime. This mechanism has been designed to monetize
environmental values using market mechanism to contribute to the sustainable development of the hostcountry and to encourage cleaner technology transfer from developed countries. As of June 20, 2008, a1

total of 1,084 CDM projects have been registered with the CDM Registration Board. Out of theseregistered projects, India is the host country for 35% of the projects followed by China (14.4%) and Brazil(13.6%). Compared to these numbers, Bangladesh has so far been successful in registering only 2 projects
constituting 0.18 % share of the CDM projects. Such a share is highly disproportionate considering
Bangladesh's population, geographical location and economic condition.
In order to attract CDM projects in Bangladesh it is advantageous to have a strategy for CDM. The goal of
the CDM strategy is to promote and attract climate friendly investment in Bangladesh. The objective of
this study is:● to enhance awareness of stakeholders regarding CDM;
● to identify economic opportunities in sectors that will be beneficial to the country for CDM
projects;● to Identify and implement achievable and practical actions that can be undertaken immediately, as well
as longer-term actions which will result in future easy identification, design and implementation of
CDM projects.
3. Clean Development Mechanism and how it works:
CDM is an important component of the Kyoto protocol (Article 12) which allows 39 industrializedcountries to achieve part of their GHG emission reduction target through investment in projects indeveloping countries that reduce GHG emission from the atmosphere. CDM allows developing country
entrepreneurs and others to get investment fund for doing projects and the 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 and the project must promote sustainable development.
The salient feature of CDM is:▪ Industrialized (Annex-B) countries’ state or private companies can invest in projects indeveloping (Non-Annex B) countries that contribute to reduction of GHG emission.
▪ Developing (Non-Annex B) countries’ state or private companies are allowed to implement suchprojects.
▪ Through CDM projects industries in developing countries can be technologically upgraded andmade environment friendly thus contributing to global climate protection as well as promoting sustainable
development in the host country.

2▪ The industrialized countries’ investing entities can earn credit for emission reductions achieved
its investment in developing country towards its own emission commitment.
4. CDM and Sustainable Development:
Under the Marrakech Accords, the goal of sustainable development is mandatory for CDM projects.
However, it is left up to individual Designated National Authority (DNAs) to determine the sustainable
development criteria and to approve or deny projects based on these criteria. One innovative approach isto create a domestic regulatory environment in which the sale of Certified Emission Reductions (CERs)
from project with lower development benefits are taxed at a higher rate than those with larger benefits.
The revenue created can then be invested in a fund that would be used to advance sustainable development
goals. The following are some possible perspectives which can be taken for regarding sustainable
development in the CDM: [3]▪ From the global investment perspective▪ From the host country’s perspective▪ From the individual project’s perspective▪ From a development agency’s perspective▪ From possible dimensions of sustainable development criteria
For potential CDM projects the following may be useful matrix to follow:
Dimension
EconomicGlobalGDPNational
TradeLocal (Project)
Employment

Environmental

GDP/capita
GHG emissions

Taxes
Biodiversity

Local air quality

Biodiversity

Air quality

Local water quality

HDI

Water quality
Employment

Health /Capacity Building

Poverty reduction

Community Participation

Social5. How Can CDM Help Private Sector in Bangladesh:3

Developing countries including Bangladesh in the process of achieving fast economic growth often haveto settle for inferior technologies. Through CDM therefore an entrepreneur can▪ Opt for a better technology resulting in cost savings;▪ Be able to comply with the relevant regulations;▪ Have a safer and cleaner plant; and▪ Contribute to national sustainable development and to global environmental protection.
6. The approach and Methodologies:•Selection and analysis of pilot projects;•Analysis of energy efficient use, technologies and practices effectiveness: selection oflocal

initiatives, surveys realizations and analysis of results and lessons learned;•Selection of internationally recognized indicators, development and testing of measurement
methods and elaboration of strategies for successful implementation;•Wide dissemination of the results.

7. Discussion and Conclusion:
This study investigates the CDM opportunity in Bangladesh and in order to attract CDM projects inBangladesh it is advantageous to have a strategy for CDM. The goal of the CDM strategy is to promote
and attract climate friendly investment in Bangladesh. So my goal through this research is to enhanceawareness of stakeholders regarding CDM and identify economic opportunities in sectors that will bebeneficial to the country for CDM projects. Along with these my another objective is to identify andimplement achievable and practical actions that can be undertaken immediately, as well as longer-term
actions which will result in future easy identification, design and implementation of CDM projects. This
study will also investigate the Bilateral Offsite Credit Mechanism (BOCM) opportunity that is going tooffer by Japan to facilitate the bilateral cooperation in the field of climate change in such a way that best
suits each country’s national circumstances.

References:4[1] Clean Development Mechanism (CDM) Guidebook, September 2011, DoE, Ministry of Environment
and Forest, Government of Bangladesh.
[2]http://unfccc.int/kyoto_protocol/mechanisms/clean_development_mechanism 24.08.2012[3] Haque Saleemul, Dr. Applying Sustainable Development Criteria to CDM Projects: PCF Experience,
PCF Plus Report 10, Washington DC, April 2002: (9-12) Clean Development Mechanism (CDM)
Guidebook, September 2011, DoE, Ministry of Environment and Forest, Government of Bangladesh.
[4] Clean Development Mechanism (CDM) Guidebook, September 2011, DoE, Ministry of Environment
and Forest, Government of Bangladesh: pp 06[5] http://wasteconcern.org 24.08.20125