CDM--a climate change mitigation technology

Muhammad Selim Hossain

CLEAN Development Mechanism (CDM) is one of the most flexible and sustainable mitigation mechanisms established by the Article-12 of the agreed Protocol of UN Conference on Climate Change in Rio in 1992. Basically CDM refers to climate change mitigation project functioned by both developing and developed countries where the developing countries kick off projects, donor agencies or developed countries make capital outlay to the projects which eventually cause emission reduction of green house gases (GHGs), mainly carbon. The Certified Emission Reduction (CER) credits will be sold to the developed countries. So, a successful CDM project fetches benefit for both host developing countries and patronizing developed countries. What does CDM basically do? The CDM has two key goals including to assist developing countries who host CDM projects to achieve sustainable development and to provide developed countries with flexibility for achieving their emission reduction targets, by allowing them to take credits from emission reducing projects taken up in developing countries. CDM projects have both global and local-national effects. As global effects, it attracts foreign direct investment, reduces GHGs and complies with MDGs (Millennium Development Goals). And as local-national effects, it reduces solid waste management cost of municipalities and ground and surface water pollution thus reducing health hazard, enhances life of the dumpsites, improves quality of city life, raises public awareness on solid waste management and recycling, provides safe and better working condition for the informal sector, and reduces poverty by creating jobs for urban poor. CDM in Bangladesh
Present status:The government of Bangladesh set down a two-tier Designated National Authority (DNA) through a government notification on 13 October 2003 -- much later in comparison to other developing countries. In the meantime, a number of developing countries including Costa Rica, Brazil and other South American developing countries had developed CDM projects. Since the inception of CDM process, Bangladesh possesses two completely registered projects. More 5 projects have just got DNA approval. Of the two already registered projects, one has been prepared on “Landfill Gas Recovery in Dhaka” under the recently completed project entitled “Capacity Development for Clean Development Mechanism in Bangladesh” under the MoEF's SEMP (Sustainable Environment Management Programme) project with the support from UNDP. Prospects: There is much potentiality of growth of CDM projects in Bangladesh. Because there are three major sectors in which GHGs emission can be reduced -- waste, forestry and energy, both supply side and demand side. Yet, the potential sectors for the development of CDM project in Bangladesh are waste and forestry. In waste sector, Bangladesh can develop a number of projects because Bangladesh, especially urban Bangladesh, spawns a huge amount of waste everyday. Currently urban waste generation in Bangladesh is more than 14000 tones per day and it is estimated that if the present trend continues, the figure will reach to 47,064 tones per day in 2025 (Enayetullah, 2009). The CDM projects in waste sector can be beneficial to ensure job creation, health insurance, environmental development, soil quality improvement and higher yield of agriculture in the open dumping area of waste disposal. The options in the forestry sector can be both afforestaton and reforestation. There may be large or small scale, single or multiple species pure forestry or on farm systems such as reforestation of marginal areas with native species e.g. riverine areas, along the coastal belt, steep slopes, around and between existing forest fragments where deforestation has occurred over time; new, large-scale industrial plantation; establishment of biomass plantation for energy production and substitution of fossil fuels; plantation in and around homestead; small-scale plantation by land owners; introduction of trees into existing agricultural system (agroforestry) and rehabilitation of degraded areas through tree plantation or assisting natural regeneration. The Energy sector options for CDM project in Bangladesh are numerous. They include switching from carbon intensive fuels to less carbon intensive fuels such as- replacing coal by natural gas in brickfields, replacing diesel buses by CNG buses and solar home systems; replacing an inefficient device by an efficient one such as-incandescent bulbs to compact fluorescent lamps, efficient air conditioners; increasing the efficiency of an existing device such as- retrofitting boilers and motors; modifications of a process so that it consumes less fossil fuel such as- pulping using continuous digesters in place of batch digesters; Greenfield projects such as- Vertical Shaft Brick Kiln (VSBK) for brick making (Waste Concern, 2009). Major limitations and suggested actions: In a developing country with a small geographic area but burdened with population explosion, resource limitation, unemployment problem, extreme poverty, pollution problem and political instability like ours, worth mentioning growth in CDM projects is imperative. Development and successful implementation of sufficient number of CDM projects can ensure overall environmental development, thus reducing health hazard specially in urban Bangladesh, mitigation of energy crisis and enhancing economic growth of the country but the reality is that the country is yet to get any benefit from the growing trade of CDM projects because CDM here has experienced numerous circumscriptions since its inception. The major limitations that the country has experienced over the time are stated here along with some suggested actions. * China, India, Brazil and Malaysia are the top beneficiary countries of CDM process. They have better technical capability, large number of entrepreneurs, will-defined and high quality base line and sufficient number of CDM experts. The developing countries like Bangladesh don't have such facilities and accordingly they are deprived of the chance. This is why these countries should unitedly approach the CDM Executive Board into formulating rules, procedures and strategies that support them. * CDM project implementation process is complex. Countries like Bangladesh should apply to CDM Executive Board to relax and simplify the process for the sake of smooth growth of CDM over the whole developing world. * Bangladesh lacks both entrepreneur and optimum fund in this operation. Government should mobilise number of entrepreneurs through inspiration and motivation and then the banking sector should be called for raising fund for project development. * The rules and regulations in energy sector that are not helping CDM to flourish must be amended (Hossain, 2009). Enhancement of government cooperation to make CDM initiative a success in Bangladesh is a must. The govt. should clearly declare the CDM business facilities offered from govt's part. * There is lack of baseline data. The government should establish a well-defined base line for CDM taking the help of the country's expert level people and all concerned govt. and non-govt. organizations. * Capacity and strength level of private and public institutions in Bangladesh in this regard is very low. Main target should be to build capacity of the staffs and officials of public and private sectors about CDM project and to strengthen local institutions. Now China is the world's largest CDM host. China's experience clearly indicates that capacity building is the key to jumpstarting CDM project. Information about CDM opportunities in the country can be disseminated to draw the attention of donor agencies and other foreign investors through participation in trade fair, exhibition and websites of national institutions. * The government should establish clear institutional structures, transparent CDM procedure such as- one stop approval process, and sound governance with clearer lines of responsibility to facilitate the smooth implementation of CDM project. * Low level of awareness amongst the public, private and financial sectors about CDM opportunities is one of the underlying obstacles to CDM's thrive in Bangladesh. Awareness building and related information dissemination should be done through seminar, symposium, and advertisement in mass media and other means of propaganda and motivation.
Muhammad Selim Hossain is an M.S. student, Department of Geography and Environment, University of Dhaka.