Thematic Programme Area 5: Greening the Economy
Bangladesh 2013-2016
SITUATION ANALYSIS
UNEP defines a green economy as one that results in improved human well-being and
social equity, while significantly reducing environmental risks and ecological scarcities.
In its simplest expression, a green economy can be thought of as one which is low
carbon, resource efficient and socially inclusive. In a green economy, growth in income
and employment should be driven by public and private investments that reduce carbon
emissions and pollution, enhance energy and resource efficiency, and prevent the loss of
biodiversity and ecosystem services. These investments need to be catalyzed and
supported by targeted public expenditure, policy reforms and regulation changes. The
development path should maintain, enhance and, where necessary, rebuild natural capital
as a critical economic asset and as a source of public benefits, especially for poor people
whose livelihoods and security depend on nature. The concept of a “green economy”
does not replace sustainable development, but there is now a growing recognition that
achieving sustainability rests almost entirely on getting the economy right.
During the last two decades, much capital was poured into property, fossil fuels and
structured financial assets with embedded derivatives, but relatively little in comparison
was invested in renewable energy, energy efficiency, public transportation, sustainable
agriculture, ecosystem and biodiversity protection, and land and water conservation. This
recent traction for a green economy concept has no doubt been aided by widespread
disillusionment with our prevailing economic paradigm, a sense of fatigue emanating
from the many concurrent crises and market failures experienced during the very first
decade of the new millennium, including especially the financial and economic crisis of
2008. But at the same time, we have seen increasing evidence of a way forward, a new
economic paradigm – one in which material wealth is not delivered perforce at the
expense of growing environmental risks, ecological scarcities and social disparities
(UNEP).
Mounting evidence also suggests that transitioning to a green economy has sound
economic and social justification. There is a strong case emerging for a redoubling of
efforts by both governments as well as the private sector to engage in such an economic
transformation. For governments, this would include leveling the playing field for
greener products by phasing out antiquated subsidies, reforming policies and providing
new incentives, strengthening market infrastructure and market-based mechanisms,
redirecting public investment, and greening public procurement. For the private sector,
this would involve understanding and sizing the true opportunity represented by green
economy transitions across a number of key sectors, and responding to policy reforms
and price signals through higher levels of financing and investment.
Bangladesh is now trying to achieve higher productivity and economic growth through
industrialization. The goal has been to bridge the country’s income and technology-gap
with the developed countries. However, the boom in secondary or manufacturing sector
of our economy with the process of industrialization has entailed ‘externalities’, costs that
are not accounted for, costs to the society and environment caused by industrial pollution.
Assessments of the country’s status against the common indicators of environmental
quality (air or water quality standards) suggests that although the industry and
manufacturing sector is growing – employing more people and creating livelihood
opportunities, the natural environment is being irreparably damaged. The proposed
industrial policy puts a strong emphasis on ‘protection of the environment’ and directs
manufacturing enterprises to strictly comply with environment-related laws and
regulations such as controlling environmental pollution by setting up effluent treatment
plants (ETPs). In addition to that, 17 industry sectors have been brought under
regulations with this policy to make them environment friendly. But in practice, with so
many mouths to feed and unemployed people with no access to safety nets,
environmental concerns are always a second priority. There are rules and regulations and
standards for emissions and release of untreated and hazardous effluents in nature, but the
enforcement of the laws is still very limited in scale and severity. The Department of
Environment (DoE) with its limited capacity is working hard to ensure compliance, but
there is a serious need for capacity development of DoE, as well as sensitization of the
industry owners.
According to the Department of Environment (DoE), the density of airborne particulate
matter (PM) reaches 463 micrograms per cubic meter (mcm) in the city during
December-March period - the highest level in the world. An estimated 15,000 premature
deaths, as well as several million cases of pulmonary, respiratory and neurological illness
are attributed to poor air quality in Dhaka, according to the Air Quality Management
Project (AQMP), funded by the government and the World Bank. The phasing out of
petrol-driven two-stroke auto-rickshaws in 2003 and their replacement with four-stroke
versions, which use a much cleaner burning fuel (compressed natural gas), significantly
decreased the volume of air contaminants. But, according to DoE sources, a sharp
increase in the number of vehicles and construction sites in 2004-2008 led to a
deterioration of Dhaka's air quality. (Ref. Md. Shohagh & Tapas, The Daily Star,
(Wednesday, November 11, 2009) cited on Monday, June 20, 2011)
An inventory of greenhouse gas sources and sinks in Bangladesh for the year 1990 was
conducted. The result depicts that, CO2 is the principal contributor to global climate
change worldwide, and energy use is the largest source of CO2 emissions, much effort
was made to analyze the Bangladesh energy system. Carbon emissions and carbon uptake
in forests were also accounted for. Emissions of methane from agriculture, livestock, and
urban landfill waste were also included in the inventory. In 1990, energy production
using fossil fuels accounted for 15.5 Tg of CO2 emissions. Carbon emissions resulting
from forestry were also calculated. It was found that about 5.46 Tg of carbon was
removed/consumed from the forest sources in 1990. On the other hand, about 12.32 Tg of
carbon was taken up in forests. Based on these numbers, which exclude bamboo, the
forests of Bangladesh acted as a net sink for approximately 6.86 Tg of carbon in 1990.
Methane emissions in 1990 from flooded rice cultivation ranged between 257 and 622
Gg, with a median of 439 Gg CH4. Methane emissions from the livestock sector were
about 453 Gg CH4. About 5.92 Gg CH4 are emitted due to venting, flaring, and
transmission and distribution of natural gas. Methane emissions from landfilled wastes in
the major urban areas of Bangladesh contributed approximately 74 Gg CH4.
Since the country’s industrial sector has been disposing the industrial wastes and toxic
substances without treating them, pollution from industries is a major threat to the
ecosystem, biodiversity as well as human health. There is the need for installing Effluent
Treatment Plants (ETPs) in all industries to save the country’s environment apart from
facing the impacts of climate change (Rahman, 2008). The United Nations Industrial
Development Organization (UNIDO) has indeed already taken up a plan to set up a
National Cleaner Production Centre (NCPC) in Bangladesh to help make industries
energy-efficient and environment-friendly.
On the brighter side, green technology is gaining ground in Bangladesh slowly but surely.
Several sectors are adopting the innovations, thanks to growing campaigns against carbon
emissions, the lead contributor to global warming. The idea behind green technology
encompasses evolving new methods and techniques to generate energy for production of
non-toxic products. The concept ‘be green and make business green’ is up in the air
(Hasan, 2009). Shifting to greener and cleaner means of production technology would
eventually help Bangladesh in creating avenues for capturing a greater share of the
international market, as most of them require the local suppliers to follow specific
environmental and occupational safety standards.
In Bangladesh, telecom companies and international banks are in the forefront of
Corporate Social Responsibility (CSR) activities. Bangladesh’s largest mobile phone
company, Grameen Phone (GP) is a good case of a ‘green company’, GP has shifted to an
energy efficient building, applying the concept of a paper-less office and investing
heavily in social and environmental causes. They are adopting green energy solutions for
their base stations, mostly solar energy. Another company of the same industry,
Banglalink has also incorporated environmental cleaning activities in its CSR
programmes. The mobile phone sector accounts for less than 1 percent of total carbon
emission in the country, contrary to leather industries and ship-breaking yards which are
the top polluters and are still far from being green. HSBC, Citi Bank NA, British
American Tobacco and many other corporate houses are committed to the causes of
environment and development.
In some sectors of the country there is an emerging need for green technology. For
instance, about 70% of the population in Bangladesh does not have access to electricity
and thus Grameen Shakti (GS) operates a small loans scheme that enables poor
households to buy a solar system. They cost about $135, but villagers usually pay in
installments (Majumber, 2009) collectively or by forming a community based
organization. Solar systems are helping reduce footprint by replacing polluting kerosenefired lanterns and helping reduce deforestation and pressure on natural resources. The
scheme also creates local jobs and income opportunities. Some women have doubled
their income and become energy distributors as a result of the electricity. Some 2.5
million people are benefiting from solar energy systems, and Grameen Shakti has plans to
reach 10 million people by 2012 (Majumber, 2009). GS having installed 325,000
photovoltaic solar home systems and 8,000 biogas plants for cooking purposes across the
country, it delivers sources of renewable energy in the country (Hasan, 2009). GS has
also launched a programme to promote environment-friendly stoves in Bangladesh to
address the high demand for biomass fuel to reduce indoor air pollution caused by
cooking on traditional stoves. So far, 35,000 improved cooking stoves have been installed
(Hasan, 2009).
Additionally, Rahimafrooz and some other organizations are developing zero-carbon
emitting irrigation pumps and organic fertilizers to produce healthier crops. It has
developed solar irrigation pumps to replace the traditional ones that run on diesel. The
company is operating nine pumps in crop fields (Hasan, 2009). The World Bank had
provided additional financing of $130 million in 2009 to support the government's efforts
to reach more households in rural areas with solar home systems.
Brickfields are the major sources of greenhouse gas emissions in Bangladesh. An
inefficient number of poorly constructed kilns and the use of substandard fuels in the
kilns contribute to the high level of emission. Around 4,000 brickfields produce more
than 12 billion bricks a year, which has been growing by 10 percent a year due to a boom
in real estate (Hasan, 2009).
A United Nations Development Programme (UNDP)-supported pilot project was
introduced at Dhamrai, a brickfield hub, to modernize the industry and substantially
reduce greenhouse gas emissions. It recommends the use of the environment-friendly
Hybrid Hoffman Kiln (HHK) technology to replace the age-old Fixed Chimney Kiln in
the brick-making units (Hasan, 2009). The Government of Bangladesh (GoB) has also
introduced standard heights for the chimneys (120 ft.) and to be equipped with wetscrubber to reduce air pollution. Moreover, banning the production and use of polythene
and switching to 4 stroke engine auto rickshaw are also examples of environment friendly
approaches.
An extensive policy framework has been adopted in recent years in favor of a green
economy. The Coastal Zone Policy and Coastal Development Strategy for example
recommend a number of options for sustainable and environment friendly business
development in the coast. The National Tourism Policy calls for ecotourism
development, with the involvement of local communities. The National Agricultural
Policy suggests that environment friendly agriculture and agribusiness be developed,
especially in the rural areas.
Bangladesh is also exploring the opportunity of CDM projects in various sectors such as,
energy, waste and industrial and etc. There are number of successful on-going, most of
them are implemented by various leading NGOs of the country with financial and
technical support from different development partners. The Landfill Gas Recovery
Project in Dhaka and Chittagong is currently being implemented by Waste Concern. It is
also working as an investor and operator for organic waste recycling projects through
composting. Its’ working principle is based on public-private partnership model and
carbon financing. Moreover, Waste Concern is also preparing a baseline for poultry waste
in Bangladesh for tapping CDM funds.
Bangladesh efforts towards greening its economy, however sincere, is not adequate,
compared to the manifold challenges it faces. Apart from poverty and lack of education,
the country is also exposed to multiple vulnerabilities such as natural disasters and a
volatile political environment. For instance, because of cyclone and storm surges,
inundation a large area in the coastal districts is virtually unsuitable for a number of
crops, while the production of other crops is less due to salt injury. About 0.13 Million
Tons of food grain is lost annually due to adverse impact of soil salinity (CCC, 2009).
Moreover, the impact of the recent cyclone Sidr and frequent flood is by far the most
severe in the agricultural sector, at more than Tk. 23 billion (US$ 333 million), which
accounts for 89 percent of the total loss in value added (GOB-WB, 2008). Thus,
incorporating environmental costs into the national accounts is crucial for getting an
accurate GDP that incorporates all the costs and externalities.
In Bangladesh, human rights are violated on an everyday basis, so it is not much of a
surprise that environmental compliance is absent in the industries and businesses. The
common people of Bangladesh, because of their traditional ways of life, are inherently
environment-friendly. However, they are overwhelmed by their daily struggle for
providing for a family and to optimize the limited resources available to them. It
therefore befalls upon the civil society and the intelligentsia to provide lead in building
up the necessary social movement; gain the cooperation of the international environment
and the support of the pro-environment forces of the countries in the region to carry its
effort of greening the economy.
The Country Environmental Analysis (CEA) Report, 2006 by World Bank estimates that
environmental factors account for as much as 22% of the national burden of disease,
principally in the form of respiratory infections and diarrhoeal disease associated to poor
environmental conditions and exposure to poor air and water quality. The total economic
cost of the poor management of water resources in Dhaka is estimated at US$670 million
annually, including impacts on human health, as well as industrial and natural resource
productivity. CEA report also mentions that, reduced exposure to environmental health
risks could result in economic savings equivalent to as much as 3.5% of GDP. This
would be achieved by improving access to adequate sanitation and safe water supplies,
better hygienic practices, reducing exposure to indoor and urban air pollution, and to a
lesser extent by the better management of agro-industrial toxics waste.
By depleting the world’s stock of natural wealth – often irreversibly – this pattern of
development and growth has had a detrimental impact on the well-being of current
generations and poses tremendous risks and challenges for future generations. The recent
multiple crises are symptomatic of this pattern. Existing policies and market incentives
have contributed to this problem of capital misallocation because they allow businesses to
run up significant social and environmental externalities, largely unaccounted for and
unchecked. “Unfettered markets are not meant to solve social problems” so there is a
need for better public policies, including pricing and regulatory measures, to change the
perverse market incentives that drive this capital misallocation and ignore social and
environmental externalities.
Justification of IUCN’s Engagement
To make the transition to a green economy, specific enabling conditions will be required.
These enabling conditions consist of the backdrop of national regulations, policies,
subsidies and incentives, and international market and legal infrastructure and trade and
aid protocols. At present, enabling conditions are heavily weighted towards, and
encourage, the prevailing brown economy, which, inter alia, depends excessively on
fossil fuel energy. IUCN Bangladesh has the leveraging position to promote green
technologies in its economy, through its advocacy activities and influencing the
government and private sector.
The knowledge, capacity and governance systems required for greening the economy in
the country needs immediate enhancement. IUCN Bangladesh can provide reliable, upto-date and accessible data on species and ecosystems dynamics and status, functions and
their interactions with national economies, livelihoods and vulnerability, and managing
and disseminating these data in useful and relevant forms. This information is vital in
continuing to provide economic valuation data to policy makers to help them in making
informed and effective decisions.
In addition, the country office’s approach will involve identifying and promoting
economic and financial instruments that will support accountable, transparent,
participatory and predictable governance to obtain sustainable development. It will also
seek to empower stakeholders through the use of participatory planning and assessment
techniques in the infrastructural development, environmental compliance to ensure
environment friendly economic growth.
IUCN Bangladesh will continue to support the sustainable use of natural resources that
underpin livelihoods and ensure that governments have the capacity to meet all of their
objectives of economic growth, achieving its national targets and conserve ecosystems
through proper enforcement of rules and laws for the relevant sectors such as, industrial
sector. It will also develop eco-friendly or nature based approaches, tools and techniques
to facilitate poverty reduction, with due attention to environmental protection against
climate change in various bio-ecological zones including, coastal region. Environmental
Impact Assessment (EIA) and biodiversity assessments will also be an area of focus for
influencing decision making on economic development, valuing the options and tradeoffs involved in businesses.
The Regional Business and Biodiversity Programme (RBBP) has the capacity and
experience on working with various businesses across the Asia region. IUCN also has the
capacity to work with government and the private sector to highlight the linkages
between ecosystems, economics and livelihoods. The RBBP has coordinated strategic
relationships with leading private sector partners in the region such as the Dilmah Group
of Companies, Six Senses Resorts and Spas and the Dhamra Port Company Limited
(DPCL), a subsidiary company of Tata Steel in India working together on sound
environmental management also promoting longstanding positive industry–conservation
relationships. Using its past experience, IUCN Asia can assist governments in developing
green economic policies and strategies to achieve the twin goals of poverty reduction and
conservation.
In the past few years, IUCN B is also exploring opportunities to collaborate with various
private sectors those are focusing on CSR such as, Grameen Phone, Holcim, HSBC and
Citi Bank NA. The areas of common interest include, enhancement of awareness of the
school children on biodiversity conservation, economic empowerment of rural women
through biodiversity conservation.
IUCN’s Approach
In relation to the global warming issues, the carbon emission rate is less than 0.3 tonnes
per head in Bangladesh while this rate is 20 tonnes per head in the USA, 9 tonnes in
South Africa and Germany, 5 tonnes in China, and 2.8 tonnes in the developing countries
(Rahman, 2010). Although Bangladesh’s contribution to global carbon emissions is
negligible, within the country compliance with respect to emissions and waste generation
from industries remains a far cry from reality. Although IUCN Bangladesh has not been
involved in the ‘brown’ issues of environmental management in the past, there is much
scope for engaging with the private sector, industries and manufacturing units, in creating
awareness and ensuring compliance and socially responsible behavior.
The greening of the economy in a country depends on how effectively the environmental
management tools are working to green the business and development activities.
Considering the country’s extreme vulnerability to the effects of climate change, an
integrated green economy system needs to be introduced to cope with the challenges. A
green economy is an economy or economic development model based on sustainable
development and knowledge of ecological economics.
IUCN in Bangladesh strives to integrate community concerns into its projects and address
issues of livelihoods, disaster risk reduction, adaptation to climate change, etc. In
engaging with the private sector, the country office has discussed the role of the business
community in the above mentioned areas and seeks partnerships or fruitful alliances that
eventually lead to changes in the lives and livelihoods of local and indigenous people.
Asia Results
Asia Result 5.1.1: Conservation knowledge in general and the ecosystem approach
in particular, is mainstreamed into economic development processes as well as in
emerging policies and debates on climate adaptation and food security in at least 5
countries and in at least one sub-region
Bangladesh result
5.1.1.1 Ecotourism potentials tested in a number of pilot sites and success stories with
economic rationale recommended to the Government for mainstreaming into its National
Tourism Policies
Asia Result 5.1.2: Capacity of 4-5 corporate sector entities in at least three countries
is increased to enter into biodiversity and ecosystem services markets including PES
mechanisms as well as green product markets.
Bangladesh result
5.1.2.1 Effective dialogue and collaboration between IUCN and the private sector
initiated, to achieve conservation through, and alongside, sustainable development
5.1.2.2 Capacity of national networks and entities enhanced for influencing businesses
and markets towards green business development, and responsible consumer behavior
Asia Result 5.2.1: Biodiversity performance of at least 3-4 corporate entities in 3-4
countries in Asia enhanced by supporting integration of biodiversity strategies and
developing market based tools
Asia Result 5.2.2: Business strategies and actions on Biodiversity and Ecosystem
Services (BES) are integrated into wider corporate social responsibility initiatives
with 2-3 corporate entities each, in at least three Asian countries
References:
Bhuyan, Ayubur Rahman.2011.Bangladesh Industrial Policy 2010: A Critical Appraisal.
Thoughts on Economics, Vol. 20, No. 03.Dhaka.
Rahman, A. “Introducing Green Economy to cope with Climate Impacts”. The Daily
Star. 4 December, 2010. Dhaka
Hasan, Md. 2009. “ Green Tech puts a New Face on Business” . The Daily Star. 9
August, 2009. Dhaka
Majumber, A. 2009 “Bangladesh’s rural poor tap the power of the sun”. International
Herald Tribune 18th August 2009.
www.unep.org/greeneconomy
CCC, 2009. Environment Cost for Climate Change. Climate Change Cell, DoE, MoEF
Cyclone Sidr in Bangladesh Damage, Loss and Need Assessment for Disaster Recovery
and Reconstruction, 2008 Government of Bangladesh Assisted by World Bank and other
Development Partners.
Ahsan Uddin Ahmed, K. Islam and M. Reazuddin. 1996. An Inventory of Greenhouse
Gas Emissions in Bangladesh: Initial Results. Ambio. 1996 Royal Swedish Academy of
Sciences