Dhaka: Bangladesh is set to gain carbon credits in the international market through electricity generation from waste, as the country embarks on its first large-scale waste-to-energy project at the Aminbazar landfill in Dhaka. This initiative not only aims to address the capital's escalating waste-management challenges but also contributes to reducing greenhouse gas emissions.
According to Bangladesh Sangbad Sangstha, the project is being executed at the Dhaka North City Corporation's Aminbazar landfill and has already secured a financing agreement with China. This follows consultations and agreements among key stakeholders, including the Ministry of Local Government, the Power Division, the Environment Division, and the city corporation. The project is poised to provide a sustainable solution to the waste management issues plaguing the city.
Electricity generated by this innovative project is expected to be integrated into the national grid by 2028, with an anticipated output of 42.5 megawatts from landfill waste. Project officials have emphasized the broader economic significance of this initiative, beyond the mere purchase of electricity at Taka 25 per unit. It promises to tackle Dhaka's waste crisis, improve landfill management, protect the environment, and create opportunities for Bangladesh's future carbon economy.
Currently, the city corporation allocates around Taka 520 crore annually for managing the Aminbazar landfill. However, once the Chinese company begins operating the power plant, the city corporation will be relieved of this financial burden. Additionally, Bangladesh stands to earn approximately Taka 90 crore annually in carbon credits as the plant reduces carbon emissions.
State Minister for Local Government, Rural Development and Cooperatives, Mir Shahe Alam, revealed that China is directly investing Taka 6,000 crore in the project. The implementation is spearheaded by China's CMEC Group, with financing from various international financial institutions, including the Asian Infrastructure Investment Bank, DBS, NDB, and Bank of China.
Minister Alam highlighted the ultimate economic benefit of the project, stating, "Everyone is talking about the price, but ultimately the price will be below Taka 10. Most importantly, Bangladesh will receive carbon credits."
A carbon credit represents the reduction or removal of one metric tonne of carbon dioxide or an equivalent amount of greenhouse gas emissions. On the international stage, one carbon credit signifies one tonne of carbon dioxide or its equivalent in greenhouse gases prevented from entering the atmosphere.
In a recent climate change meeting, Prime Minister Tarique Rahman instructed relevant authorities to assess the potential for boosting Bangladesh's carbon credit by reducing emissions and formulating an action plan. The Prime Minister underscored the importance of increasing renewable energy use, introducing eco-friendly technologies in the industrial sector, enhancing energy efficiency, conserving forests, and expanding carbon absorption through extensive tree plantation.
The state minister also stressed the necessity of ensuring transparency in carbon-credit management, developing a reliable database, and strengthening coordination with international organizations. Environmentalists have noted that the project offers another economic benefit by capturing methane from decomposing organic waste, which can be used as fuel, providing an alternative to fossil fuels and reducing uncontrolled methane emissions.
The carbon-credit potential of the project will hinge on measuring, reporting, and independently verifying the reduction of carbon-equivalent emissions compared to conventional landfill management. Carbon credits may be generated for each tonne of verified emissions reduction. However, the potential earnings from these credits cannot be predetermined, as they depend on the quality of credits, market conditions, project methodology, and international regulations.
Climate change expert and BRAC University Emeritus Professor Dr. Ainun Nishat commended the government's move toward carbon trading. He noted that the Aminbazar project could establish a more organized waste-management system, helping to rid the city of odors and pollution from untreated waste. Dr. Nishat also praised China's involvement in generating electricity and initiating carbon-credit trading, labeling it as "very encouraging."
The Environment Ministry is developing new plans concerning carbon trading, with the government's approach appearing long-term and overseen by the Prime Minister. Dr. Nishat emphasized the importance of implementing these initiatives to ensure success.