1 Climate Knowledge Development Network (CDKN) Country scoping studies to support the Mobilising Private Investment for NDC implementation (MPI) project Deliverable 5: Final report- Scoping study - Bangladesh 1 st September 2017
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Climate Knowledge Development Network(CDKN)
Country scoping studies to support theMobilising Private Investment for NDCimplementation(MPI)project
Deliverable 5: Final report- Scoping study -Bangladesh
1stSeptember2017
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ClimateKnowledgeDevelopmentNetwork(CDKN)1EmbankmentPlaceLondonWC26RHUKOurreference 50158
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ProjectManager
VirginieFayolle
ApprovedbyJohnFirth
Acclimatise
HexgreaveHall
Farnsfield
Newark
UKNG228LS
T:+44(0)1623884347
W:www.acclimatise.uk.com
This report was prepared by Acclimatise, the trading name of
AcclimatiseGroupLimited,tomeettherequirementsoftheclient:
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©CopyrightAcclimatiseandAcclimatiseGroupLimited2017
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ContentsAcronyms...............................................................................................................................................4
1. Executivesummary........................................................................................................................7
2. Introduction.................................................................................................................................11
3. Methodologicalapproach............................................................................................................12
4. Context........................................................................................................................................17
4.1 Bangladesh’sNDC................................................................................................................17
4.2.LinkagesoftheNDCtootherclimateandprivatesectordevelopmentstrategiesandactionplans................................................................................................................................................20
4.3 Reviewofthecountryconditionswithrespecttoprivatesectorengagementinclimatefinance.............................................................................................................................................25
4.4 Institutionallandscape.........................................................................................................35
4.4.1 Reviewofkeyactorsrelevantwithrespecttoprivatesectorengagementinclimatefinance .........................................................................................................................................35
4.4.2 Reviewofpastandexistingdonor-ledinitiativesin-countrytoaddressbarriers...........38
5 Preliminaryassessmentofpossibleinvestmentareasfortheprivatesectorinprioritysub-sectors.................................................................................................................................................43
5.1. Prioritysub-sector1:Improvedcropproduction................................................................43
5.1.1. Weatherindex-basedagricultureinsurance:..................................................................43
5.1.2. Production,distributionandadoptionofhighyieldingandclimate-resilientseeds.......45
5.2. Prioritysub-sector2:REinthepowersector......................................................................46
5.3. Prioritysub-sector3:IndustrialEE.......................................................................................52
5.4. Prioritysub-sector4:Modalshift........................................................................................57
5.5. Prioritysub-sector4:Electricvehicles.................................................................................60
6. Conclusion...................................................................................................................................62
7. References...................................................................................................................................64
8. Annexes.......................................................................................................................................70
Annex1.Longlistofsub-sectors.....................................................................................................70
Annex2.Listofstakeholdersconsulted..........................................................................................72
Annex3.Interviewguide.................................................................................................................73
Annex4.Stakeholdermapping........................................................................................................78
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Acronyms
ABBL AssociationofBankersBangladeshLimitedACI AdvancedChemicalIndustries
ADB AsianDevelopmentBank
AF AdaptationFundBB BangladeshBankBBMOA BangladeshBrickManufacturingOwners'AssociationBARC BangladeshAgriculturalResearchCouncilBAPA BangladeshAgro-ProcessorsAssociationBCAS BangladeshCentreforAdvancedStudiesBCCSAP BangladeshClimateChangeStrategyandActionPlanBCCRF BangladeshClimateChangeResilienceFundBCCTF BangladeshClimateChangeTrustFundBGEF BrightGreenEnergyFoundationBIDS BangladeshInstituteofDevelopmentStudiesBIFFL BangladeshInfrastructureFinanceFundLimitedBMB BangladeshMerchantBankersBOT Build-Operate-TransferBRAC BuildingResourcesAcrossCommunitiesBRACB BRACBankBRACU BRACUniversityBRTC BureauofResearch,TestingandConsultation(BUET)BSREA BangladeshSolarandREAssociationBUET BangladeshUniversityofEngineeringandTechnologyCB CityBankCDKN ClimateandDevelopmentKnowledgeNetworkCFF ClimateFiscalFrameworkCCRIP CoastalClimateResilientInfrastructureProjectCTEIP CoastalTownsEnvironmentalInfrastructureProjectCCTF ClimateChangeTrustFundCIF ClimateInvestmentFundsCIP CountryInvestmentPlanCPD CentreforPolicyDialogueCPEIR ClimatePublicExpenditureandInstitutionalReviewCRSAP ClimateResilienceStrategyandActionPlan
CSOs CivilSocietyOrganisationsDAE DirectAccessEntitiesDANIDA DanishInternationalDevelopmentAgencyDCCI DhakaChamberofCommerceandIndustryDoE DepartmentofEnvironmentEB EasternBankEC3R BRACconsultingwing
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EE EnergyEfficiencyEIDU EnergyInstituteofDhakaUniversityEPRE EnergyPack-REERD EconomicRelationsDivisionESCO EnergyServiceCompanyFAO FoodandAgricultureOrganizationFBCCI FederationofBangladeshiChamberofCommerceandIndustryFC FutureCarbonFD FinanceDivisionFDI ForeignDirectInvestmentFI FinancialInstitutionFIT Feed-InTariffFP FundingProposalGCF GreenClimateFundGCPF GlobalClimatePartnershipFundGDC GreenDeltaCapitalGDI GreenDeltaInsuranceGEF GlobalEnvironmentFacilityGHG GreenhousegasGIZ DeutscheGesellschaftfürInternationaleZusammenarbeitGoB GovernmentofBangladeshGP GlobalPartnershipGDP GrossDomesticProductGS GrameenShaktiICCCAD InternationalCenterforClimateChangeandDevelopmentICT InformationandcommunicationtechnologyIDCOL InfrastructureDevelopmentCompanyLimitedIDLC IndustrialDevelopmentLeasingCompanyIE ImplementingEntitiesIFC InternationalFinanceCorporationIKI GermanClimateFund(I)NDC (Intended)NationallyDeterminedContributionsJICA JapanInternationalCooperationAgencyJFPR JapanFundforPovertyReductionKCCI KhulnaChambersofCommerceandIndustriesLT LalTeerLCDS LowCarbonDevelopmentStrategyLDCF LeastDevelopedCountriesFundLEDS Low-EmissionDevelopmentStrategiesLEDSGP Low-EmissionDevelopmentStrategiesGlobalPartnershipMBL MercantileBankMCCI MetropolitanChamberofCommerceandIndustryMDB MultilateralDevelopmentBank
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MoA MinistryofAgricultureMoEF MinistryofEnvironmentandForestsMoF MinistryofFinanceMoI MinistryofIndustriesMoPEMR MinistryofPower,EnergyandMineralResourcesMPI MobilisingPrivateInvestmentMSME Micro,SmallandMediumEnterpriseM&E MonitoringandevaluationMT MegatonMTBL MutualTrustBankLimitedNACOM NatureConservationManagementNDA NationalDesignatedAuthority
NAMA NationallyAppropriateMitigationAction
NAP NationalAdaptationPlanprocessNAPA NationalAdaptationProgrammeofActionNSAPR NationalStrategyforAcceleratedPovertyReductionODA OfficialDevelopmentAssistancePC PowerCellPCom PlanningCommissionPD PowerDivisionPIL PragatiInsuranceLimitedPPCR PilotProgramforClimateResiliencePPP Public-PrivatePartnershipPSMP PowerSystemMasterPlanR&D Research&DevelopmentRE RenewableEnergyRREL RahimafroozRenewableEnergyLimitedRHD RoadandHighwayDepartmentRTA RoadTransportAuthorityRTHD RoadTransportandHighwayDivisionSCF StrategicClimateFundsSDG SustainableDevelopmentGoalsSL SolaricSME SmallandMediumEnterpriseSMEF SmallandMediumEnterpriseFoundationSPCR StrategicProgramforClimateResilienceSREDA SustainableandREDevelopmentAuthoritySREP ScalingUpREInLowIncomeCountriesProgramSIDS SmallIslandDevelopingStatesUIU UnitedInternationalUniversityUNDP UnitedNationsDevelopmentProgrammeUNFCCC UnitedNationsFrameworkConventiononClimateChangeWB WorldBank
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1. Executivesummary
InconjunctionwiththeLow-EmissionDevelopmentStrategies(LEDS)GlobalPartnership(GP),theClimate and Development Knowledge Network (CDKN) has secured funding from the GermanClimate Fund (IKI), to deliver the €5 million Mobilising Private Investment (MPI) project. Itsobjective is to support public actors and the private sector to create favourable conditions forprivate investment in implementing Nationally Determined Contributions’ (NDCs) by de-riskinginvestmentsandincreasingthescaleofdemand.Throughaprocessofin-depthanalysisofbarrierstofinancing,facilitationofdialoguebetweenpublicandprivatesectorstakeholders,andthesharingof learning and best practice through the wider LEDS GP, the project aims to support themobilisation of private finance into these sectors. The projectwill be delivered over a three-yearperiodinsevencountries,includingBangladesh.
Informed by desktop research and focussed stakeholder consultation, this report presents theresultsofastudythataimstoinformthescopeoftheworktobeundertakenbytheMPIprojectinBangladesh.Inparticular,itaimstoidentifyprioritysub-sectorsinrelationtotheBangladesh’sNDCthatarethemostconducivetoprivatesectorinvestment(i.e.low-hangingfruits)thatcouldbetakenforwardbytheMPIproject.Outofa totalof9subsectorsoriginating fromBangladesh’sNDC (seeAnnex1), fivesub-sectorsare identifiedwith the biggest potential for private sector investment, including improved cropproduction(agriculture),EnergyEfficiency(EE)(industry),RenewableEnergy(RE)(power),modalshift (transport); and electric vehicles (transport). For each of these short-listed sub-sectors, apreliminaryassessmentofthetype,scaleandkeybarrierstoprivatesectorinvestmentisprovidedinthisreport(seeTable1).FurtherinformationisprovidedinSection5.
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Table1:Summaryofthemarketmaturityandkeybarriersforthefivesub-sectorswiththebiggestpotentialforprivatesectorinvestments
Sub-Sector Investmenttypes Marketmaturity (fromnascent = * tomostsignificant=***)
Keybarriers
Improvedcropproduction
Weatherindex-basedagricultureinsurance
* • Policy and regulatoryconstraints
• Inadequate infrastructure &data
• Lackofinternalcapacity• Highcosts• Lackofawarenessinthemarket
Production,distributionandadoptionofhigh-yieldingandclimate-resilientseeds
*** • Hamperingseedregulation• Lackoflowcostfinance• Inadequatedata• Lackofknowledgeandcapacity
onclimatechangeEE(industry) PromotingEEinthe
cementindustry* • Lackofawarenessansdcapacity
inindustry• LackoffinancetoimplementEE
measuresPromotingEEinthetextile/garmentindustry
*
RE Biogas ** • Limited access to low costfinance
• Lackofaccesstoland• Uncertainty about grid
extension• Low/lackoffeed-intariff(FIT)• Lackofduty/taxwaivers• Lackofawarenessandcapacity
Biomass(ricehuskandsugarcane)
**
Hydro *
Solarnano/minigridandutility-scale
***
Wind *
Modalshift Operationofthemetrorailstations,includinge-ticketing
* • LackofreliableGHGdata• Lack of awareness/
understanding• Lack of access to low-cost
finance• Lackofaccesstoland
Electricvehicle
Electricthreewheelerswithsolarchargingfacilitiesinruralandperi-urbanareas
* • LackofreliableGHGdata• Lack of awareness/
understanding• Lack of access to low-cost
finance
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Out of these short-listed sub-sectors, three are recommended to be taken forward by theMPIproject,namely theEE subsector focusingon thecementandgarment/textile industries, theREsubsectorfocusingonbiogas,biomassandpossiblysolar,aswellastheelectricvehiclesubsector.This is informed by the potential for building on previous or ongoing work undertaken bydevelopmentpartners(includingtimelinesstocapitaliseonanyresultsorlessonslearnt).Foreachshort-listedsubsector,ourkeyrecommendationsarepresentedinTable2below.Table2:Keyrecommendationspersubsector
No Sub-sector:EE(industry)
1 PromotetheuseofpreferentialdutywaiversofimportedcapitalmachineriesaswellasEEequipmentiscriticalfortheupdateofEEmeasures,alongsidepreferentialtaxationpolicyforEEventuressuchasEnergyServiceCompanies(ESCOs)
2 Supportaccesstolowcostfinancetocoverupfrontinvestment,addressinglackoffinancialpackagesby commercialbanks tailored toEEprojects, and implementingpilotprojects fordemonstrating thebusinesscasesoftheuptakeofspecificEEmeasures.ForinstancebysubmittingaconceptundertheGCF’sMicro,SmallandMediumEnterprise(MSME)pilotprogramme(seeBox1).
3 Develop and roll out an awareness-raising campaign on EE savings/benefits in the cement industry.Trainingofenergyauditconsultantswillalsoberequired.
4 Develop and roll out an awareness-raising campaign on EE savings/benefits in the textile/garmentindustries.Trainingofenergyauditconsultantswillalsoberequired.
Sub-sector:RE5 Develop a case study to identify lessons learnt and challenges in developing biogas projects (in
particular in thepoultryanddairy sectors)withaviewtosupport scalingupandreplication in ruralareas.
6 Conductadetailedmappingofthepotentialforbiomass(whereandhowmuch).7 Supportaccesstolowcostfinance,addressinglackoffinancialpackagesbycommercialbankstailored
tospecificREtechnologies(focusingonbiogas,biomassandsolar)andimplementingpilotprojectsfordemonstratingthebusinesscasesforpromotingtheuptakeofspecificREtechnologies,forinstancebysubmittingaconceptundertheGCF’sMSMEpilotprogramme(seeBox1).
8 Promote theuseofpreferential dutywaiversof imported capitalRE related technologies, alongsidepreferentialtaxationpolicyforREventures.
9 Develop/rolloutanawareness-raisingcampaignonREsavingsandbusinesscases. Sub-sector:Electricvehicle
10 Carry out a market study about the potential for introducing electric three wheelers with solarcharginginruralandperi-urbanareas.
Box1.OpportunityfortheMPIprojecttosupportaccesstoconcessionalfundingundertheGCF’sPrivateSectorFacility(PSF)
Bangladesh has not accessed yet the dedicated instrument of the GCF for mobilising privateinvestment- the Private Sector Facility. IDCOL has been currently accredited and could submit aconceptunder itsMSMEpilot programme, inparticular under theRE andEE subsectors (areasofexistingworkofIDCOL).AsecondMSMERFPisexpectedtobepresentedatthe18thBoardmeeting(takingplacebetween30Septemberand2ndOctober2017),basedonthelessonslearnedfromthefirstround.For each recommendation, further informationon key stakeholders to further engagewith undertheMPIprojectisprovidedinTable3.
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Table3:Summaryofstakeholdersforfurtherconsultationforeachrecommendation
No. Maximising synergies byprevious/ongoinginitiatives
Policydialogue Privatesolutionsprovider Co-financier
1 GlobalClimatePartnershipFund(GCPF)
Sustainable and RE Development Authority(SREDA)
International Finance Corporation(IFC)andBRACBank(BRAC-B)
2 GCPF SREDA IFCandBRAC-B
3 IFC SREDA 4 GCPFandIFC SREDA BRAC-B5 Power division, Ministry of Power, Energy and
MineralResources(MoPEMR)andSREDA Infrastructure Development
Company Limited (IDCOL),Bangladesh Infrastructure FinanceFund Limited (BIFFL), BangladeshBank (BB) and Mutual Trust BankLimited(MTBL)
6 Powerdivision,MoPEMRandSREDA IDCOL,BIFFL,BBandMTBL7 IDCOL,BBandBIFFL Powerdivision,MoPEMRandSREDA Rahimafrooz Renewable Energy Limited
(RREL),SolaricandEnergyPack-REIDCOL,BBandBIFFL
8 IDCOL,BBandBIFFL Powerdivision,MoPEMRandSREDA RREL,SolaricandEnergyPack-RE IDCOL,BBandBIFFL
9 IDCOL,BBandBIFFL SREDA RREL,SolaricandEnergyPack-RE IDCOL,BBandBIFFL
10 Public-Private Partnership (PPP) Authority andRoadTransportandHighwayDivision(RTHD)
RREL
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2. Introduction
In conjunctionwith the Low-EmissionDevelopment Strategies (LEDS)Global Partnership (GP), theClimate and Development Knowledge Network (CDKN) has secured funding from the GermanClimate Fund (IKI), to deliver the EUR 5 million Mobilising Private Investment (MPI) project. Itsobjective is to support public actors and the private sector to create favourable conditions forprivate investment in implementing Nationally Determined Contributions’ (NDCs) by de-riskinginvestmentsandincreasingthescaleofdemand.
Theprojectaims todriveprivate investment inactivities laidout inNDCsby selecting sub-sectorsthat are most conducive to private sector investment. Through a process of in-depth analysis ofbarrierstofinancing,facilitationofdialoguebetweenpublicandprivatesectorstakeholders,andthesharingof learning andbest practice through thewider LEDSGP, theproject aims to support themobilisation of private finance into these sectors. The projectwill be delivered over a three-yearperiodinsevencountries,includingBangladesh.
AcclimatiseandNatureConservationManagement(NACOM)havebeencommissionedtoundertakeascopingstudyfortheMPIprojectinBangladesh.Themainaimofthisstudyistoidentifyprioritysub-sectors in relation to the Bangladesh’s NDC that are the most conducive to private sectorinvestment(i.e.low-hangingfruits).
Inlightofthis,theoverallobjectivesofthisstudyarethree-fold:
• Identifysub-sectorsthatarerelevanttoBangladesh’sNDCtobetakenforwardbytheMPIproject,basedonadetailedrationale;
• Provide an initial assessment of the private finance landscape, as well as the scale ofinvestmentopportunitiesandtherisksandbarrierstoinvestmentwithinthesesub-sectors.Recommendationsforfurtheranalysisshouldalsobeprovided;and,
• MapkeyactorsandtypesofexpertiserequiredbytheMPIprojectundereachsub-sectorforittosucceedinitsexpertfacilitationandbrokeringrole.
Therestofthisreportisstructuredasfollows:
• Methodologicalapproach(section3);• Context(section4);• Preliminaryassessmentofpossibleinvestmentareasfortheprivatesectorinprioritysub-
sectors(section5);• RecommendedcapacityandexpertiseforMPIdelivery(section6);• References(section7);and,• Annexes(section8).
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3. Methodologicalapproach
Figure 1 provides an overview of the methodological approach to identify the most fundablesubsectorsrelatedtoBangladesh’sNDCthatcouldbetakenforwardbytheMPIproject.
Figure1:Overviewofthemethodologicalapproach
Recommendationsprovidedinthisreportwereinformedbydesktopreviewofexistinginformationon Bangladesh’s climate change policy and finance frameworks, alongside bilateral consultationmeetingswith19stakeholdersbetween9thand24thJuly2017(seeAnnex2).
Phase1-Desktopresearch
• Review of Bangladesh’s NDC to identify a long list of priority sectors and sub-sectors (mitigation and adaptation)
• Prioritise the long list of sub-sectors and identify a shortlist of sub-sectors for stakeholder engagement
• Preliminary review of existing private investment flows (baseline) for each of the priority sectors and sub-sectors base don publicly available information
Phase2-Stakeholderconsultation
• Prepare and arrange the stakeholder consultation • Conduct a series of 20 one-to-one meetings • Consolidate and analyse the results of the stakeholder consultation
Phase3-Reporting
• Conduct a preliminary assessment of risks and opportunities • Identify 1-3 sub-sectors with the strongest potential • Provide recommendations for areas of further work under the 1-3 sub-sectors recommended for further engagement under the MPI project
• Provide recommendations on relevant partners to work with under the MPI project
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Figure2:Processofsubsectors’selection
Themainoutcomeofthisscopingstudywillbetorecommendupto3sub-sectorswhichhavethestrongestpotential, tobetaken forwardunder theMPIprojectand forwhich furtherconsultationandanalysiswillbeconducted.
Based on a review of the key objectives and priority areas of the NDC, associated three sectoralaction plans and implementation roadmap (see Section 4), a long list of 9 sub-sectors was firstidentified(seeAnnex1).
After preliminary desktop review and consultation between the project team and CDKN, thefollowingfiverelevantsubsectorswereselectedforthestakeholderconsultationphase:
• Improvedcropproduction(agriculture);• EnergyEfficiency(EE)(industry);• RenewableEnergy(RE)(power);• Modalshift(transport);and,• Electricvehicles(transport).
Theselectionoftheseprioritysub-sectorswasbasedontheirpotentialforprivatesectorinvestment(basedonourteam’sexpertknowledge).
Asaresultofthisprioritisationprocess,itwasdecidednottotakeforwardunderthepowersector,the subsectorsof conventional energy, EEof powerplants andwaste to energy, the reforestationandafforestationsubsectorunderforestry.Theseshort-listedsubsectorsprovideabalancebetweenmarkets that are mature (low-hanging fruits) and less mature with a development potential.Following the stakeholder consultation process and based on a better understanding of theinvestmentpotentialandbarriersforeachpre-selectedsubsectors,wehaverecommendedspecific
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subsectorstobetakenforwardbytheMPIproject.SeeTable4foranoverviewoftherationaleforrulingoutthesesub-sectors.
Table4:Overviewoftherationaleforrulingoutthesubsectorsofconventionalenergy,efficiencyimprovementofpowerplants,reforestationandafforestationundertheforestrysectorandwastetoenergyunderthepowersectorpriortotheconsultations(source:preparedbytheauthors)Sub-sectorsruledout RationaleEfficiencyimprovementofpowerplants(power) Thepotentialforprivatesectorinvestmentinre-
powering old-inefficient steam turbines withcombinedcyclepowerplantsislimitedinlargelypublic-ownedpowerplants.AlloldpowerplantsareownedbythepublicsectorandtheGoBhasalready undertaken a repowering process thatwillbecompletedby2020.
Conventionalenergy(power) The GoB has introduced a stringent policy toaccept only Ultra Super Critical technology forcoal-fired power plants, while there is limitedexperience in Bangladesh with the Ultra SuperCritical technology. The technology is stillunderthe experimental phase and in many cases notproven yet. In addition, there are sensitivitiesaroundtheuseofcoaltechnologyanditshealthandenvironmentalimpacts.
Wastetoenergy(power) Therehavebeenvarious initiatives ledbyNGOsandprivateinvestorsbuttheyhavelargelyfailtodeliver. The main challenge is the lack ofavailabilityofwaste.Theauthorityforcollecting,storing and managing waste, the MunicipalCooperationisnotincentivisedtoprovidewasteforthisuse.
Reforestationandafforestation(forestry) Forestlandsandresourcesaremostlyownedbythe government in Bangladesh. There are smallsocialforestry1initiativesbyentrepreneurswithsupport from development partners (eg. AsianDevelopment Bank - ADB) but they are verymarginaltodate.
Following stakeholder consultation which includes a preliminary assessment of the barriers andopportunities for each of the shortlisted sub-sectors (namely improved crop production, EE inindustry, RE, modal shift and electric vehicles), our team identified the sub-sectors to be takenforwardbytheMPIproject.Thisisinformedbythepotentialforcreatingaddedvaluetopreviousor ongoing work undertaken by development partners (including timeliness to capitalise on anyresultsorlessonslearnt).
1TheFoodandAgricultureOrganization(FAO)definessocialforestryas'anysituationwhichintimatelyinvolveslocalpeopleinaforestryactivity’.
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Table5:Overviewofselectedsubsectors
Selectedsubsectors Investmenttypes RationaleEnergyefficiency Promoting EE in
the cement andtextile/garmentindustries
There is a high number of initiatives alreadyinvolving the private sector. There exists a highinterest from the private sector in investing inrenewableenergysolutions, themainbarrierbeingthelackofaccesstolowcostfinance.
Renewableenergy Promotinginvestments inbiogas, biomassandsolar
There is a high number of initiatives alreadyinvolving the private sector. There exists a highinterest from the private sector in investing inrenewableenergysolutions, themainbarrierbeingthelackofaccesstolowcostfinance.Inaddition,the2020targettoincreasetheshareofrenewableenergyproductionupto10%ofthetotalenergymixcreatesastrongenablingenvironment.
Electricvehicles Electric threewheelerswithsolarcharging in ruraland peri-urbanareas
In Bangladesh, there are about six or seven lacsbattery operated three wheelers that are inoperation. These vehicles are connected to thenational grid. Charging requires approximately sixhours. RREL is developing a more efficient systemwhichwill allow charging in only oneminute fromsolarpower.
Table6:Rationale for rulingoutsubsectorof improvedcropproductionafterconsultationswiththestakeholders.
Subsector ruledout
Investmenttypes Rationale
Improved cropproduction
Production,distribution andadoption of high-yielding andclimate-resilientseeds
The seed policy is the main barrier to thisinvestment in Bangladesh as there is no strongenablingenvironmentonthepolicyside.Ittakesupto3yearstodevelopnewvarietiesofseeds.
Weather index-based agricultureinsurance
Themarket is nascent in Bangladesh andprimarilydonor-led. There are various pilot projectssupported by the Pilot Program for ClimateResilience (PPCR), IFC and ADB but withoutpreliminary results, so there is no opportunity tocapitaliseintheshorttermonexistingoutcomes.
Modalshift Operation of themetro rail stations,including e-ticketing
Themegaproject forDhakametrorail isstill tobestarted-MRTLine-6.
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Limitationsofthestudy:Theseinclude:
• Sizesampleandprofileoftherespondents
TheexistingsampleisparticularlybiasedtowardstheREsubsector(inparticularsolar),withnineoutofthe19stakeholdersconsulted(approximately50%).
Figure3:Breakdownofthesampleofstakeholdersconsultedpersector(%)(source:preparedbytheauthors)
• The structure of the interview guide questions: With respect to interviews with privatesector organisations following strictly the interview guidewas challenging, as they frametheiranswersintermsofinvestmentopportunitiesandbarriers,aswellas,sizeandmaturitythattheythinksuitableandattractivetothemasanindividualbusiness,andnottheoverallmarket.Assuch,theyaresharingsomeofthechallenges/barrierstheyareanticipatingandexperiencingrightnow.
• Limitedavailabilityofinterviewrespondentsoverarelativelyshortstakeholderconsultationphase:Ourteammet19stakeholdersbetween9thand24thJuly2017.Closelyrelated,somerespondentshadlimitedavailability.
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4. Context
4.1 Bangladesh’s NDC
Bangladesh submitted its IntendedNationally Determined Contributions (INDC) to theUNFCCC inSeptember 2015. The (I)NDC2 describes Bangladesh’s plans for tackling greenhouse gas (GHG)emissions and adapting to unavoidable climate change. In the INDC, Bangladesh committed toreduceGHGemissionsinthepower,industryandtransportsectorsby5%below”business-as-usual”GHGemissionsby2030,orby15%below”business-as-usual”GHGemissionsby2030 if sufficientandappropriatesupportisreceivedfromdevelopedcountries.
The(I)NDCsarecentraltoachievingtheglobaltemperaturerisethiscenturywellbelow2degreesCelsius. GoB under the Paris Agreement signed in December 2015. Bangladesh ratified the ParisAgreement on 21 September 2016 and its NDC can now be found on theUNFCCC’s interimNDCRegistry(UNFCCC,2016).
The focus under the Paris Agreement now shifts towards implementation. It is important to notethattheParisAgreementstatesthatthe“leastdevelopedcountriesmayprepareandcommunicatestrategies,plansandactionsforlowgreenhousegasemissionsdevelopmentreflectingtheirspecialcircumstances” (UNFCCC,2015).Asaprogressivememberof theUNFCCC,BangladeshwasoneofthefirstcountriesfollowingtheParisAgreementwhopreparedaNDCImplementationroadmapandsectoralactionplansforthepower,industryandtransportsectors.
Bangladesh’s NDC Implementation Roadmap – describes and guides the overarching NDCimplementationprocessandcoverscross-cuttingNDCimplementationissues,withaviewtoensurethatNDCimplementationistakenforwardinaholistic,joined-upandeffectivemanner.
The implementation of Bangladesh’s NDC builds on and supports existing actions that theGoB istakingonclimatechange,aswellasonotherkeynon-climaterelatedstrategiesandplans.Beforeconsidering NDC implementation in more depth, it is helpful to first consider how NDCimplementation fits with wider government policy. Indeed, it is helpful not to think of NDCimplementation as an only climate change-focused and separate process, but instead as a vitalcomponenttodeliversustainableandlow-carbongrowthinBangladeshandtomeetawiderseriesof objectives and priorities, including energy access, economic growth, productivity, povertyreduction and improved quality of life. In this sense, it is closely linked to the United Nations’SustainableDevelopmentGoals(SDG)agenda(UN,2015).
IntheNDC,itwasmentionedthatanumberofbusinessesinBangladesharealreadybenefitingfromnewopportunities related to tacklingclimatechange,which includedevelopingnew technologies,accessingnewmarketsandtakingadvantageofcost-savingefficienttechnologies.Theprivatesectorcan come forward fornew investments and scaleup climate-relatedactivities. This iswhy certainbarriers such as lack of information, lack of access to finance and capacity constraints should beaddressed.2AscountrieshaveratifiedtheParisAgreement,INDCsareturningintoNDCs,whicharebindingactionscountrieswilltaketo address climate change. They will have to be submitted every five years, with a progression beyond the country’spreviousNDC.
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TheNDCcanbeseenasahigh-levelcommunicationtotheinternationalcommunityofBangladesh’soverallapproachtoclimatechangeaction,coveringbothmitigationandadaptation.TheNDCis, inturn, being implemented on the ground industry and transport sectors, through the NDCImplementationRoadmapanditsactionplansforthepower.(MinistryofEnvironmentandForests,2017).
Poweractionplan:TheGoBiscommittedtoreducingGHGemissionsfromthepowersectorby5%below the ‘business-as-usual’ scenario by 2030, or by 18% below ‘business-as-usual’ scenario by2030, conditional on support from developed countries. These targets are based on certainassumptionsregardingthelevelofuptakeofsolar(bothatutility-andsmall–scale);wind;biomass;biogas;repoweringofsteamturbinesandcleancoaltechnologies.
Industry action plan: The NDC anticipated that the industry sector would contribute to GHGemissions reductionsof4%below the “business-as-usual” scenarioby2030,orby10%below the“business-as-usual”scenarioby2030,conditionalonsupportfrominternationalfundingsourcestoimplementclimatechangemitigationmeasures.
In 2016, the GoB published the National Industrial Policy, which promotes an energy efficientindustrial sector. The specific mitigation measures in industry include cogeneration, waste heatrecovery mainly from captive generators/boilers, condensate recovery, heat recovery from thecooling systemof generator, implementation of energy efficientmeasures such as leak sealing ofsteamandairflowsystems,efficientchillers,boilersandmotors.
Thefocusofeffortswillbeonthefollowingsub-sectors:Textileandleather(becauseitis24%ofGHGemissions frommanufacturing sub-sectors);Chemicals (4% of GHG emissions frommanufacturingsub-sectors); Brick (55%ofGHGemissions frommanufacturing sub-sectors);Cement (as a growingsub-sector) and fertilizer; Food, beverages paper and tobacco (3% of GHG emissions frommanufacturingsub-sectorsandisagrowingsub-sector);Ready-madegarments;Steelre-rollingmills;Plastics; Leather; and, Garments – standard EE improvementmeasures (e.g. boilers, lighting andnaturalventilationetc.).
Transportactionplan:TheGoBiscommittedtoreducingGHGemissionsinthetransportsectorby9%belowthe“business-as-usual”scenarioby2030,or24%belowthe“business-as-usual”scenarioby2030,conditionalonsupportfromdevelopedcountries.
ThetransportsectorinBangladeshwillcontributetoGHGemissionsreductionsinanumberofways.These can be grouped according to the ‘Avoid-Shift-Improve’ framework (GIZ, undated): TheGoBexpectsthetransportsectortomeetitsconditionalGHGreductiontarget(24%below“business-as-usual” emissions in 2030) through a range of additional measures, mostly around ”improvemeasures”thatwillrequirefurthersupportfromdevelopedcountries.
Fortheconditionalscenario,theNDCassumesa15%reductioninfuelconsumedbyroadtransportper km travelled. There are a number of measures that could be used to achieve this: Furtherimprovements to vehicle fuel efficiencyof keymodes, focusingon the road sector, as thebiggestcontributortooveralltransportGHGemissionsinBangladesh;ReplacementofoldlocomotiveswithnewunitswithlowerfuelconsumptionandGHGemissions;Usageoflowsulphurdieselfuel;Betterroad traffic management;Segregated slow moving lanes for slow and non-motorised transport;Increased capacity at vehicle registration authority for emissions measurement stations; Reverselogistics, with the potential to reduce the empty running of freight road vehicles by encouraging
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freight operators to share information on their vehicle movements, so returning empty-runningfreight vehicles getutilised to carry freight; Emissionsgraduated tolls, car scrappage, reductionofroad roughness; and Information and communication technology (ICT) support, e.g. real-timeinformationonpublictransport;and,Euro4engine.
Adaptation:
AdaptationpolicyandimplementationinBangladeshisbeingdrivenbytheNationalAdaptationPlan(NAP) process (see next section). However, the NDC Implementation Roadmap and theaccompanying NDC Sectoral Action Plans for power, industry and transport, also take adaptationintoaccountbyattemptingtoprioritisemeasuresandactionsthatwillhaveadaptationco-benefits,aswellasbysettingouthowthethreesectorsarelikelytobeimpactedbyclimatechangeandhowtheycantakeactionstoaddressthis.
Adaptation is a key priority for Bangladesh and the country has already undertaken initiatives tomainstreamadaptationintonationaldevelopmentsuchasinthewater,health,forestry,agricultureandmoreprominentlyintheinfrastructuresectors.Takingclimatevulnerabilitiesintoconsideration,theGoBhas identifiedadaptationprioritiestoaddresstheadverse impactsofclimatechange.SeeTable7below.
Table7:AdaptationprioritiesforBangladeshasstatedinthecountry’sINDC(source:MoEF,2015)
1 ImprovedEarlywarningsystemfortropicalcyclone,flood,flashfloodanddrought2 Disasterpreparednessandconstructionoffloodandcycloneshelters3 Tropicalcyclonesandstormsurgeprotection4 Inlandmonsoonflood-proofingandprotection5 Climateresilientinfrastructureandcommunication6 Climateresilienthousing7 Repair and rehabilitate existing infrastructure (including coastal embankments, river
embankmentsanddrainagesystems,urbandrainagesystems)8 Plan, design and construction of urgently needed new infrastructure (various types of
shelters, low cost disaster resilient housing, protection schemes, water managementstructuresetc.)
9 ImprovementofUrbanresiliencethroughimprovementofdrainagesystemtoaddressurbanflooding
10 Rivertraininganddredging(includingexcavationofwaterbodies,canalsanddrains)11 Stresstolerant(salinity,droughtandflood)varietyimprovementandcultivation(including
livestockandfisheries)12 Researchandknowledgemanagement13 Adaptationonlocal-levelperspectivesetc14 Adaptationtoclimatechangeimpactsonhealth15 Biodiversityandecosystemconservation16 CapacityBuildingatIndividualandinstitutionalleveltoplanandimplementadaptation
programmesandprojectsinthecountry
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InvestmentneedsforimplementingtheNDC
ImplementingtheNDCwillrequiremobilisingconsiderableresourcesfrominternationaldonorsandfunds. Indeed, the NDC states that the delivery of the more ambitious target to reduce GHGemissionsby15%belowbusiness-as-usualemissions in2030 in thepower, transportand industrysectors,isconditionalonBangladeshreceivingadequatesupportfromtheinternationalcommunity.Support will be needed not just for new technologies and infrastructure, but also for capacitybuilding, further analysis, data collection and policy support. The NDC implementation sectoralactionplans(MoEF,2017)provideinformationonresourcingneedsforspecificsectors.Furtherworkneeds to be carried out to accurately cost up the priority measures. In some cases, initialassessments have beenmade. For example, the Bangladesh Road Transport Authority (BRTA) hasestimatedthecostofGHGemissionsmeasurementandthedevelopmentofacentralrepositoryfordatacombinedwouldamounttoUSD10million.
In2010,theWorldBankestimatedthatby2050,theinvestmentcostslinkedtotropicalcyclonesandstormsurgesalonewill reachUSD5.5billionandtheannual recurrentcostwillbeUSD1.1billion(WorldBank,2010).Forinlandmonsoonflooding,theinvestmentcostwillbeUSD2.7billionandtheannualrecurrentcostwillbeUSD54million.Thecostofclimate-relateddiseasesandconditions,likeDiarrhoea, Kalazar, Filariasis, Dengue/Malaria Chikungunya and chronic obstructive pulmonarydiseases,wouldcostaroundUSD4.01billionforthe15-yearperiod(2015-2030)whichisequivalenttoUSD272.1millionperannum.
The GoB has estimated that USD 42 billion (World Bank, 2010) to be required to implement theadaptation measures identified in the NDC. The resource mobilisation framework to financeadaptation prioritieswill be based on the forthcomingNAP,while taking input from theNationalSustainableDevelopmentStrategy, thePerspectivePlan (Vision2021), theSeventhFiveYearPlan,theNationalDisasterManagementPlan,theDisasterManagementActandtheCountryInvestmentPlan(CIP)ofBangladeshonEnvironment,ForestryandClimateChange.
TheCIP’s investmentpillarsare:SustainableDevelopmentandManagementofNaturalResources,Environmental Pollution Reduction and Control, Adaptation,Mitigation and Resilience to ClimateChange, Environmental Governance, Gender &Human and Institutional CapacityDevelopment.Tobeinlinewiththecountry’sNDC,theCIPliststhethreefollowinginvestmentareasunderitsmitigationcomponent:climatesmarttechnologiesforindustryandpowergeneration,lowcost transport and low emission vehicles and low emission from agriculture (Government ofBangladesh,2016).
4.2. L inkages of the NDC to other c l imate and private sector development strategies and act ion plans
ThereareimportantlinkagestomakebetweentheNDCandotherpolicyandplanningprocessesonclimate change and private sector engagement. In addition to the adoption of the BangladeshClimate Change Strategy and Action Plan (BCCSAP) in 2008 and its NDC in 2015, Bangladesh hastaken further steps on climate change adaptation, by developing a draft roadmap in 2015 todevelop itsNationalAdaptationProcess (NAP), thedocument however has not yet beenofficiallyadoptedbytheGoB.AroadmapfordevelopingtheNAPprocesswaspreparedin2015,supported
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by theNorwegianGovernment. Institutionalarrangementshavebeen setup for theNAPprocess,throughtheformulationofanInter-MinisterialSteeringCommittee,aTechnicalAdvisoryCommitteeandacoreNAPformulationteam.TheNAPprocesswillcontinuetobetheprimaryforumfortakingforwardactiononadaptation.TheNDCimplementationprocess,viatheNDC-NAPImplementationCoordinationCommittee,liaisesregularlywiththeNAPprocesstodiscusssynergiesandtoensureajoined-upapproach.
TheGoBnowaimsatdevelopingacomprehensiveNAPprocesswiththesupportoftheGIZNAPandNDCSupportProgramme.AdraftstudyonthelinkagesbetweenNDC,NAPandtheBCCSAP,SectorAction plan and other policies relevant for climate change has been undertaken to this end. Inaddition, it shouldbenoted that theBCCSAP is currentlyalsobeing reviewedunder thesameGIZNAPandNDCSupportProgramme.
GIZ is also now supporting theMoEF to carry out countrywide vulnerability assessments, bothbydistrictandbyhotspot (e.g. specificvulnerableareas).Furtherworkwillbecarriedout tosupporttheNAPprocess,includinganexercisetomodelfutureclimatescenarios,updatesofprojectionsofkey parameters (e.g. population, employment growth, economic growth etc.) and comprehensivevulnerabilityanalysisofkeysectors.GIZisalsorevisingandupdatingtheBCCSAP.
Figure4:OverviewofkeymilestonesinnationalclimatechangepolicyinBangladesh(source:preparedbytheauthors)Table8:Overviewofrelevantclimatestrategiesandactionplans(source:preparedbytheauthors)Climatestrategiesandactionplans Description
ClimateChangeStrategyandActionPlan(BCCSAP),2009
Aims to mainstream climate change into country’s overalldevelopment strategy, including 5-year plans. The actionplan is based on six pillars: (1) Food security, socialprotection and health, (2) Comprehensive disastermanagement, (3) Infrastructure development, (4) Researchandknowledgemanagement,(5)MitigationandLowcarbondevelopment and (6) Capacity building and institutionaldevelopment. Under the leadership of the Ministry ofEnvironmentandForest,BCCSAPiscurrentlybeingupdatedwithsupportfromGIZ.
ClimateFiscalFramework(CFF),2014 Aimstoensurethatexternaland internal financesareusedmost effectively in addressing climate change. Providesprinciplesandtools forclimatefiscalpolicy-making,helpingto identify the demand and supply sides of climate fiscalfunds (expenditures vis-à-vis revenue or finance,
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respectively), and to ensure that the climate fiscal policy(CFP) is transparent and sustainable in the longer term.DevelopedfollowingtherecommendationsofaBangladeshClimatePublicExpenditureandInstitutionalReview(CPEIR).
NationallyAppropriateMitigationAction(NAMA),InnovativeEnergyOptimisationintheSteelSector,2014
Locally produced heat recovery systems will be piloted attwo steel factories,whichwill capture lost heat from steelmeltingfurnacesandreusetheenergytopreheat incomingscrap. The optimised production methods will bedisseminated through training workshops for the staffinvolvedinthedailyproduction.
NAMA,Inter-UrbanRailBangladesh,2016
To reduce significantly inter-urban transport GHG andcriteria pollutant emissions in Bangladesh by reverting thetrend of a declining mode share of rail in passenger andfreighttransport.TheestimatedGHGreductionwillbe3.03MtCO2eby2018-2030.
NAMA,UrbanPassengerTransport,Dhaka,Bangladesh,2016
To reduce significantly urban passenger transport GHGemissions and to improve sustainable developmentindicatorsofDhaka.Main NAMA mitigation actions are MA1: Upgrading andextension of public transport services including theconstructionof7BRTandMRT linesMA2:TransitDemandManagementmeasuresMA3:Hybrid-CNGarticulatedbusesfortheBusRapidTransit(BRT)system.
NAP,expectedin2018 Currentlybeingdeveloped(duein2018).SupportedbyGIZ,a draft NAP roadmap has been developed but it is notendorsed by the Government yet. GIZ conducted in 2016-2017aStocktaking forNationalAdaptationPlanning(SNAP).A draft study on the linkages between NDC, NAP and theBCCSAP, Sector Action plan and other policies relevant forclimate change have been conducted by a nationalconsultantandwillbe further reviewedbyan internationalconsultant(Acclimatise).
NationalAdaptationProgrammeofAction(NAPA),2005
Developed in the aftermath of COP7 in Marrakech,Morocco,itidentifiesareasofimmediatepriorityresponsetothe adverse impacts of climate change. It assesses theimpacts, vulnerabilities and adaptation measures. FifteenadaptationstrategiesaresuggestedintheNAPA.
ScalingUpREInLowIncomeCountriesProgram(SREP)3,2015
Under thisUSD839million fundingwindowof the ClimateInvestmentFunds(CIF),channelledthroughfivemultilateraldevelopment banks (MDBs), three projects in Bangladeshareco-financedinBangladesh:
• GridconnectedRE• Off-gridsolarPV• Wastetoenergyadvisorysupport
3SPREPaimstosupportscaled-updeploymentofREsolutionstoincreaseenergyaccessandeconomicopportunities.
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Strategic Program for ClimateResilience(SPCR),2013
The Pilot Program for Climate Resilience (PPCR) of theStrategic Climate Funds (SCF) established under theMulti-donor Climate Investment Fund (CIF) aims to helpcountries transform to a climate resilient developmentpath,consistentwithpovertyreductionandsustainabledevelopmentgoals.DuringthefirstphaseofSPCR,outlineof an underlying investment programme was developed.The second phase focuses on implementing the SPCRthrough actions such as support to policy reform,institutional capacity building, and scaling-up otherinvestmentsinkeysectors.Includes three projects (Government of the People’sRepublicofBangladesh,2012):
• Promoting climate-resilient agriculture and foodsecurity
• Coastal embankments improvement andafforestation
• Climate-resilient infrastructure improvement incoastalzone
UNDP country work programme fortheGCF,2016
Identifiesshort,mediumandlong-termprioritiesforprojectproposals and concept notes in consultation with keystakeholders to be submitted to the GCF. The NDA andappointed consultants are in the process of finalising thedocumentandexpectingthat itwillbeavailablebytheendof 2017. ERD- GCF’s NDA - held with UNDP an inceptionworkshopon1June2017whichgathered11potentialDAEs,representatives of 15 international access entities active inthe country, 14 ministries and governmental agenciesrelatedtocoreclimatechangeactivitiesalongwithafurther32 representatives of other ministries and governmentagencies,8civilsocietyrepresentativesand15developmentpartners.
Attractingprivatefinanceforinvestmenttosupporttheimplementationofnationalclimatechangeprioritiesshouldbeconsideredwithinthewidernationalandsectoralpoliciesandstrategies.Table9belowprovidesanoverviewof theprioritiesof theGoB foreachof thepre-seclected sectorsandsubsectors:Agriculture,industry,powerandtransport.
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Table9:Overviewofrelevantsectoralrelevantpoliciesandstrategies(source:preparedbytheauthors)Otherrelevantstrategiesandactionplans
Description
Master Plan forAgriculturalDevelopment in theSouthern Region ofBangladesh,2013
TheplanprovidesaroadmapforanintegratedagriculturaldevelopmentinthecoastaldistrictsofBangladesh,aimingatsustainablefoodsecurity,povertyreductionandlivelihooddevelopmentforthepoor.Itsmainareasoffocusare:
• Increasingagriculturalproductivity• Improving water management and rejuvenating productivity of
degradedlands• Developingclimateresilient infrastructureand improvingsurface
waterirrigationsystem• Improving productivity of brackish water shrimp and capture
fisheries• Promotingsmall-holderpoultryanddairydevelopment
MediumTermStrategy and BusinessPlan (MTSBP), 2012-2016
AcomprehensiveplanfortheMoAandallAgenciesandDepartments. Itsets out the ministry’s vision, mission, strategic goals, policies,programmes/projects/activitiesforafive-yearperiod.
National AgriculturalExtensionPolicy(NAEP),2012
Setsextensionpolicydirectionsfortransferringtechnologiestocrop,fisheriesandlivestocksectordevelopment.
National Seed Policy,1993
Aimstomakethebestqualityseedsofimprovedvarietiesofcropsconveniently and efficiently available to farmers with a view toincreasing crop production, farmer's productivity, per capita farmincomeandexportearnings.
Crop Variety andTechnologyDevelopment Policy,2010
Setsdirectionsforthedevelopmentofcropvarietyandtechnology.
EE and ConservationMasterPlanupto2030
Bangladesh intended to improve energy intensity in 2030 by 20%comparedtothe2013level:Atotalof95milliontoe(113billionm3ofgasequivalent) is expected to be saved in the mentioned period. It isestimated that energy savings will be BDT 51 billion per year at thecurrentweightedaveragenaturalgasprice.Under this Master Plan, three programmes will be promoted, namely,Energy Management Program, EE Labeling Program and EE BuildingsProgram,whichwill be targeted at large energy consuming entities andequipmentintheindustrial,residentialandcommercialsectors.
EE and ConservationPromotion LoanProgramme
Promotestheadoptionoftheenergymanagementprogrammedescribedabove as well as helps to create new markets in industrial energyefficiency.
National IndustrialPolicy,2010
Presents governmental strategies and incentives to spur industrialinvestmentinthecountry.Itsetssectoralstrategiesandobjectives,whileestablishing a list of 32 “thrust sectors” ranging from Agro-basedactivities;ProductionandMarketingofpoultryanddairyproducts(cango
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under first sector); Transport and communication; and, Production,supplyanddistributionofpowerintheprivatesector.
REPolicyofBangladesh,2002
In Bangladesh efficient utilisation of RE resources is yet to assumecommercial dimensions and hence rational policy dissemination on REusage is essential. The RE includes solar, wind, biomass, hydro, geo-thermal,tidalwaveetc.GoalofREconstituting5%oftotalgenerationby2015and10%by2020.The GoB committed to facilitating public and private sector REinvestmentsandscaleupREcontributionstoelectricityandheatenergy,and substitute RE for indigenous non- RE supplies, Government willfacilitate RE use at every level of energy usage and develop legalenvironmentthatpromotesREuse,governmentalsoencourageefficientandenvironmentallyfriendlyuseofRE,andpromotecleanenergy
National IntegratedMultimodal TransportPolicy,2013
Aims tobuild amultimodal transport system that is cost-effective, safe,and environment-friendly and efficient, hence reducing dependence onroad transport and reducing transport cost and accidents, enhancingcompetitiveedgeanddevelopingprioritisingrail,domesticrivertransportand sea ports. In linewith thesecondNational Strategy for AcceleratedPovertyReduction(NSAPRII),coveringtheperiodfromFY09-11,theGoBis committed to developing “an efficient transportation network withadequate coverage synchronized with sustained service delivery is anessentialinputfordevelopmentoftheeconomy”.
4.3 Review of the country condit ions with respect to pr ivate sector engagement in c l imate f inance
4.3.1. Exist ing contr ibution of the private sector to Bangladesh’s economy According to the 2014 Economic Review, the private sector’s contribution to the economy issubstantial.Forthefiscalyear2013-2014,itaccountedfor74.55%ofthetotalnational investment(MinistryofFinance,2014).Overall,theGoBispromotingastrongerprivatesector involvement intheeconomy inorder tomeetdevelopment and growthobjectives, notably via thePublic-PrivatePartnership (PPP) policy to implement infrastructure projects. It targets sectors that are seen asplaying a vital role for the economic growth of Bangladesh through a direct contribution inconsumption, investmentandnetexport income, in turncontributing toachieveBangladesh long-termsustainabledevelopmentgoals.Targetedsectorsincludetheindustrialandproductivesectorsand more particularly power and information and communication technologies. In the servicessector, targeted sectors include air, inland and water transport, tourism, education, health andinsurance. A particular emphasis is put on Small and Medium Enterprises (SMEs) given theemploymentopportunitiestheyprovide.TheGoBaimstopromotejobcreationviaindustrialisation(incl.manufacturing, construction,mining andquarrying and electricity, gas andwater supply), asectorthataccountedfor31.54%oftheGDPin2015-2016,aheadofagriculture(15.35%)andbeforeservices (53.12%) (MinistryofFinance,2016).Toachievethisgoal, theGoBspecifically targets thepowersectorthroughinfrastructuredevelopment,theInformationandCommunicationTechnology(ICT) sector, telecommunications and transport (Ministryof Finance, 2014). In the services sector,
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the GoB encourages private sector involvement in the tourism, education, health and insurancesectors(Ibid).Inaddition,itshouldbenotedthatForeignDirectInvestment(FDI)representsUSD1,599.2millionin2013 andwas led by reinvestment, followed by equity and intra-company borrowing (Ministry ofFinance,2014).Intermsoflocalinvestment,privatesectorinvestmentgrewsteadilyUSD14.9billionin 2005-2006 to USD 35.6 billion in 2013-20144(Ibid). Over this period, about a third of localinvestment projects were service-based (31.53%) (Ibid).
4ConvertedfromTk.993billionandTk.2,889billionwithrespectivecurrencyratesof1January2006and1January2013.
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4.3.2. Condit ions for pr ivate sector investment AttractingprivatefinanceforinvestmenttosupporttheimplementationofnationalclimatechangeprioritiesshouldbeconsideredwithinthewiderinvestmentchallengesBangladeshfacesinsecuringfinancefordevelopmentprojects.Countriesseenashigh-riskonaglobalcomparison,andratedassuchbythecreditratingagencies,willcontinuetoexperiencedifficultiesinattractingprivatesectorinvestmentandsecuringcompetitivedebtfinance.
Accordingtothe2017reportcomparingbusinessregulationfordomesticfirmsin190,Bangladeshisranked176thineaseofdoingbusinesseconomiespublishedbytheWorldBankandIFC(WorldBank,2017)5.Notably,thecountryisranked185thintermsofregisteringproperty,187thintermsofgettingelectricity,189thforenforcingcontracts(WorldBank,2017).
Figure5:HowBangladeshranksrelativetocomparativeeconomiesandrelativetotheregionalaverage6
5TheWorldBank’sDoingBusiness2017measuresandtrackschangesinregulationsaffecting11areasinthelifecycleofabusinesswhilealsocomparingthesetoothereconomies’.
6“The distance to frontier score captures the gap between an economy’s performance and ameasure of best practiceacross the entire sample of 36 indicators for 10 Doing Business topics (the labor market regulation indicators areexcluded).”TheUnitedKingdomisusedasacomparatoreconomy(WorldBank.2017)
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Tofinanceandimplementlarge-scaleinfrastructureprojects,Public-PrivatePartnerships(PPPs)arean increasingly popular tool for procuring ormanaging public infrastructure projects (Ministry ofFinance, 2010). Adopted in August 2010, GoB’s PPP7 policy recognises PPPs as an importantinstrument in achieving the country’s key economic policy objectives: boosting growth and jobcreation,while improving fiscal anddebt sustainability includingby achieving greater efficiency inthepublicsector.
Box2:EligibleactivitiesforPPPinBangladesh(source:MinistryofFinance,2010):
• Exploration,production,transmission,anddistributionofoil,gas,coalandothermineralresources
• Oilrefinery,andproductionofLPG• Productionoffertilizer• Powergeneration,transmission,distributionandservices• Airports,terminalsandrelatedaviationfacilities• Watersupplyanddistribution,sewerageanddrainage,effluenttreatmentplans• Landreclamation,dredgingofrivers,canals,wetlands,lakesandotherrelatedfacilities• Highways and expressways including mass-transit, bridges, tunnels, flyovers,
interchanges,cityroads,busterminals,commercialcarparkingetc• Port development (sea, river and land) including inland container terminals, inland
containerdepotandotherservices• Deepseaportdevelopment• Telecommunication systems, networks and services including information and
communicationtechnology(ICT)• Environmental,industrialandsolidwastemanagementprojects;• Railwaysystems,rollingstock,equipmentandfacilities• Tourismindustry• Economic zone, industrial estates and parks, city and property development, including
servicestosupportcommercialandnon-commercialactivities• Social infrastructuree.g.health,education,human resourcedevelopment, researchand
development,andculturalfacilities;E-servicedeliverytocitizens• Povertyalleviationprojects• Pourashava(municipality)andvillagewatersupply• Remoteareapowersupplysystems• Ruralgassupply• RuralInternetprojects• Riverpassengerterminals/landingstations• Ruralhealthservicesandhospital• Irrigationandotheragriculturalservices• Otherurban,municipalandruralprojectsthattheGovernmentviewsaspriorityareasfor
developmentsoastosupporteconomicdevelopmentactivities.
7 PPP is as a legally binding contract between a public sector entity and a private company—typically referred to as aconcessionaire—wherethepartnersagreetosharesomeportionoftherisksandrewardsinherent inaninfrastructureproject.
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4.3.3. Mapping of the sources of pr ivate c l imate f inance in-country It should be recognised that obtaining consistent and comparable data on climate-relatedinvestmentischallenging,becauseentitiesthatreportsuchdatausedifferentdefinitionsofclimatechangeandreportondifferentaspectsofit.Thereisnostandarddefinitionofclimatechangethatisuniversallyused.WhilethereisonestatisticalsysteminplacethattracksinternationalpublicclimatefinanceintheformofOfficialDevelopmentAssistance(ODA)8,itonlycoversbilateraldonors.Limiteddataexiststotrackprivateclimatefinance.MostdatasourcesthattrackinvestmentdosoforREandEE,andsomeincludelow-carbontransport.Forinstance,theClimateFinanceLandscapeassessmentonlyprovidesdataforprivatefinanceinRE.9Furthermore,investmentsarenottrackedconsistentlyand separately for public and private sectors or for emerging or developedmarkets. In addition,private climate finance data, limited as it is, tends to be commercial and available only upon
subscription10. Nevertheless, it isusefultounderstandtheexistingclimatefinancelandscapeinBangladesh.MostclimatefinanceinBangladeshtodatehasbeentargetedatadaptationandclimateresilience,whichhasbeen todatemostlypublic-funded,while there is no information availableonprivate climatefinance.Figure6belowprovidesanoverviewofclimate finance flows inBangladeshbasedontheClimate Public Expenditure and Institutional Review (CPEIR) conducted in 2012. Based on therecommendationprovidedbytheCPEIR,aClimateFiscalFramework(CFF)wasdevelopedin2014tohelp ensure that external and internal finances are used most effectively in addressing climatechange. It provides principles and tools for climate fiscal policy-making, helping to identify thedemand and supply sides of climate fiscal funds (expenditures vis-à-vis revenue or finance,respectively),andtoensurethattheCFFistransparentandsustainableinthelongerterm.
8 The so-called Rio Markers are policy markers that are used to monitor climate change specific aid. See OECDDevelopmentAssistanceCommittee—CreditorReportingService(DAC-CRS).9Seehttp://www.climatefinancelandscape.org/10SeealsoBuchner,Barbara,JessicaBrownandJanCorfee-Morlot.(2011).MonitoringandTrackingLong-termFinancetoSupportClimateAction.May2011.OECD/IEAProjectfortheClimateChangeExpertGroupontheUNFCCC.
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Domestic public flows for climate-related activities are channelled and accessed through theBangladeshClimateChangeTrustFund(BCCTF)toimplementtheBCCSAP,allocatedatotalofUSD340 million from the national budget. 66% of the BCCTF’s projects are aimed at enhancingBangladesh’sadaptationcapacity,comprisingalargenumberofsmall-scaleprojects(underUSD2.5million) across the country. Projects are implemented by government bodies as well as non-governmental and civil society organisations, research institutions and the private sector. Theremaining34%iskeptasafixeddeposit,earninginterestforemergencyprojectsandprogrammes.Sofar139governmentprojectsand63non-governmentprojectshavebeenapproved,toatotalofUSD190.78million(TransparencyInternationalBangladesh.2013).Internationalpublic flows:TheBangladeshClimateChangeResilienceFund (BCCRF), a trust fundmanaged by World Bank and sponsored by development partners was established in 2010 toaddress thenegative impactsof climatechange. Itwasdesignedsuch thatall investmentprojectsareexecutedbytheGoBanditsdesignatedagenciesorothereligibleinstitutions.AsofSeptember2013, donor agencies contributed USD 188.2 million to the BCCRF and 81% of this was alreadydisbursed to 13 projects, including theNGOwindow. Apart from this NGOwindow, six analyticalstudiesarefundedunderthethematicareaofresearchandknowledgemanagement,andtherearean additional five investment projects. Of the five investment projects, three are stand-aloneprojectsandtherestareco-financedwithotherongoingWorldBankprojects.TheBCCRFcurrently
Figure6:OverviewofclimatefinanceflowsinBangladesh(source:CPEIR,2012)
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faces difficulties regarding its resources and is almost non-existent (Bangladesh Climate ChangeResilienceFund,2012).
The Pilot Program for Climate Resilience (PPCR) established under the mulit-donor ClimateInvestment Funds (CIFs)aims to help developing countries transform to a climate resilientdevelopmentpath, consistent withpoverty reductionandsustainable developmentgoals.InBangladesh, thePPCR is implementedmainly through IFC,ADB,KFWand IMF.PPCRaimstohelpfoster private sector development and leverage additional private investment for adaptation.Nationalgovernmentshaveproposedspecificclimateresilientactionsthattheyanticipatetodeliverby engaging the private sector, for example – in Bangladesh, the IFC is working with privatestakeholders to promote climate resilient agriculture and food security (e.g. through improvedpractises and distribution chains) using USD 13 million from the PPCR grant and concessionalfinancing.IFC isalsoexploringwaystoengagetheprivatesector inproviding low-costhousingforcoastalpopulations.Thereisalsoanimportantfocusonengagingwiththeprivatesectorincludinglocalfinancialintermediaries(insurancecompaniesandcommercialbanks).
DuringthefirstphaseofthePPCR,aStrategicProgramforClimateResilience(SPCR)wasdevelopedforBangladeshin2010,outlininganunderlyinginvestmentprogramme.Thesecondphasefocuseson implementing theSPCR throughactionssuchas support topolicy reform, institutional capacitybuilding,andscaling-upotherinvestmentsinkeysectors.InvestmentsinBangladeshtotalUSD109.4million,withUSD572millionleveragedinco-financing,foratotalportfolioofUSD681.4million.Theprojectincludes:
• ClimateResilientAgricultureandFoodSecurity;• FeasibilityStudyonClimateResilientHousing(technicalassistance);• CoastalEmbankmentImprovementProject(Phase-1);• CoastalClimateResilientInfrastructureProject(CCRIP);• CoastalTownsEnvironmentalInfrastructureProject(CTEIP);and,• ClimateChangeCapacityBuildingandKnowledgeManagement(technicalassistance).
Otheremerginginternational(multilateralandbilateral)flowsforclimateactivitiesinclude:
Green Climate Fund (GCF): Bangladesh is targeting the GCF for support for mitigation andadaptationactions.TheEconomicRelationsDivisionintheMinistryofFinancehasbeendesignatedastheNationalDesignatedAuthority(thenationalfocalpointfortheGCFinBangladesh)andtheyhavesubmittedaproposaltotheGCFforbuildingGCFreadiness,forexamplebystrengtheningthecountry’s coordination mechanism for GCF-related activities and identifying transformationalinvestmentopportunitiesinaccordancewithGCF’sInvestmentFrameworkandResultManagementFramework(GCF,2015).Thusfar,BangladeshhasreceivedUSD40millionfromtheGCFforclimateresilient infrastructuremainstreaming in Bangladesh, with a further USD 40million of co-fundingfrom the German Ministry for Economic Cooperation and the Bangladeshi Ministry of LocalGovernment(GCF,2015).ItshouldalsobenotedthatBangladeshhasnotaccessedyetthededicatedinstrumentof theGCF formobilisingprivate investment- thePrivateSector Facility (PSF). Seeboxbelow.
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The Global Environment Facility’s Least Developed Countries Fund (LDCF): This fund wasestablished to address the special needs of the 51 Least Developed Countries (LDCs) that areespeciallyvulnerabletotheadverseimpactsofclimatechange.TheLDCFreducesthevulnerabilityofsectors and resources that are central to development and livelihoods, such aswater, agricultureand food security, health, disaster risk management and prevention, infrastructure, and fragileecosystems.Bangladeshhasreceivedallocated34.4millionfor7projects.
TheGlobalEnvironmentFacility’sTrustFund:TheFundsupportstheimplementationofmultilateralenvironmentalagreements,andservesasafinancialmechanismoftheUNFrameworkConventionon Climate Change, UN Conservation of Biodiversity and UN Convention of CombatingDesertification.BangladeshreceivedgrantUSD9.2millionforImprovementsofKilnEfficiencyintheBrickMakingIndustriesinBangladesh.The GEF: The GEF together with the UNDP and the GoB also support the “National Capacitydevelopment for implementing Rio Conventions through environmental governance” project. Thegoal is to strengthen Bangladesh’s capacities to implement and manage Rio Conventionobligations.Theproject’sstrategyemphasisesalong-termapproachtoinstitutionalisecapacitiestomeet the Rio Conventions’ obligations through a set of learn-by-doing activities to integrate RioConventions and other key related MEA obligations into the country’s national developmentframework. The total budgetof theproject isUS$1320,000.GEF contributionamounts toUSD660,000,UNDPcontributesanotherUSD200,000andtheGoBwithUSD460,000.
The UN REDD+ Programme:This is a national programme that aims to reduce emissions fromdeforestation and forest degradation. The GoB has taken the initial steps to prepare for theimplementation of REDD+ activities and approved the UN-REDDNational Programme on 19 June2016. The objective of the programme is to initiate the implementation of its REDD+ ReadinessRoadmap by establishing the necessary REDD+ management processes, identifying strategicreadinessoptionsforcompletingitsNationalREDD+strategy,anddevelopingthecapacitiesrequiredtobegintheimplementationofREDD+.TotalbudgetforthisinitiativeisaboutUSD2.3million(UNREDDProgramme,2015).
The NAMA Facility, set up by the UK and German Governments and now also supported by theDanish Government and the European Commission, could be a source of funding for mitigationaction.
Japanesebilateral fundsare routeddirectly to government agencies via the coordinationof ERD.They are: the Japan International Cooperation Agency (JICA), Japan Bank for InternationalCooperation (JBIC), Japan International Cooperation Center (JICE), Japanese Grant Aid for HumanResourceDevelopment Scholarship (JDS). JICA has disbursed the following amounts inODA (ODAloan (2011-2015): USD 4,337,990,000), grant ((up to 2014): USD 1,136,720,000) and technicalassistance (Assistance (2010-2014): USD 146,289,000)11. JICA focuses on the following sectors:power, transportation, urban development, private sector, education, health, governance, ruraldevelopment & agriculture and disaster management. JICA runs a “Private Sector Development
11UsingexchangerateofJPY1=USD0.00903,6August2017onhttp://www.xe.com.
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Programme” that focuses on SMEs and PPPs’ development. JICA also undertakes an EnergyEfficiency and Conservation Promotion Financing project which aims to promote efficient use ofenergy in Bangladesh by introducing and disseminating energy efficient equipment throughconcessional loan, technical support, incorporating latest technical trends of Energy Efficiency,creating awareness thereby contributing to balance energy demand-supply and mitigate climatechange. It provides financing to financial intermediaries. (JICA, 2010) Eventually, the JapaneseGovernment is also present in Bangladesh through the Joint CreditingMechanism (JCM)/BilateralOffset Credit Mechanism (BOCM) which promotes climate change mitigation actions throughbilateral agreements mainly between developing and developed countries (Global CCS Institute,2013). There currently are six JCM model projects in Bangladesh (Ministry of Environment AndForestsBangladesh,2017):
• EnergySavingforAirConditioning&FacilityCoolingbyHighEfficiencyCentrifugalChillerinSugarMill
• InstallationofHighEfficiencyLoomatWeavingFactory
• IntroductionofPV-dieselHybridSystematFasteningManufacturingPlant
• 50MWSolarPVPowerPlantProject
• InstallationofHighEfficiencyCentrifugalChiller forAirConditioningSysteminClothingTagFactory
• Energy Saving of Air-Conditioning System by Recovering Waste Heat from Engine inTextileFactory
Privatefinance:Whilenodataexistoninternationalprivatefinanceflows,domesticprivatefinanceismainly provided through the local commercial banks and other financial institutions who offerconcessionalloansandrefinancing,followingtheadoptionoftheBangladeshBankpolicyguidelinesfor Green Banking in 2011. In the 2014 Climate Fiscal Framework, green banking is amethod offinance designed to encourage environmentally responsible investments, extending priority toenterprisesandindustriesthataretryingto“growgreen”.
According to the Bangladesh Bank (BB) guidelines (GBCSRD Circular No 4) on August 11, 2013 alloperatingbanksandfinancialinstitutionsneedtotakeeffectivemeasurestoconductenvironment-friendlybankingactivities in thecountry.BBhasalso issuedacommonreporting formattoall thecommercial banks to report green banking activities. Commercial banks and financial institutionsnow regularly submit a quarterly report to the Bangladesh Bank on their performance of greenbankingactivities.BBhasalsoenhancedtheproductlineunderitsgreenbankingschemefrom6to47andsegregatedthese products into 10 categories which are: RE, EE, solid waste management, liquid wastemanagement, alternative energy, fire burnt brick, non-fire block brick, recycling & recyclableproduct, green Industry andmiscellaneous. This includes various types of solar power plant (SHS,solar mini grid, solar irrigation pumping system, solar PV assembly plant), bio-gas plant, effluenttreatment plant, substitution of energy-efficient kilns for conventional lime kilns, vermi-compost,hydropower(pico,micro,andmini),PETbottlerecyclingplant,solarbatteryrecyclingplant,LEDbulb
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manufacturingplant,andHybridHoffmanKiln(HHK)/tunnelkiln/equivalenttechnologyinthebrickmanufacturingindustry.Morethan3.1millionimprovedcookstovesandnearly4.5millionSHShavealreadybeendistributedacrossthecountryandunderthesolarroof-topprogramaround14MWofsolar has been installed on the vacant roof-tops of government and private buildings.Nearly 300solar irrigationsystemsarebeing installed indifferentpartsof thecountry. In response to theBB“PolicyGuidelinesforGreenBanking”issuedbytheBB,IDLChasalsoadopteditsowngreenbankingpolicy in2013whichaims to institutionalisegreenbankingacrosstheorganisationbyfocusingonthefollowingmajoraspects:
• Governance;• Environmentalandsocialrisksincreditriskmanagement;• In-houseenvironmentmanagement;• Greenfinance,productsandmarketing;• Climateriskfund;• Training,awarenessandgreenevents;and,• Disclosureandreporting.
Thetablebelowsummarises themajorgreenbankingactivitiesundertakenbybanksand financialinstitutions(FIs)inBangladesh:
Table10:MajorGreenBankingActivitiesataGlanceinJanuary-March,2017(source:BangladeshBank,2017)
Issue Bank FINumberofbanks/FIshavingSustainableFinanceunit 55 30Numberofbanks/FIshavingGreenbankingpolicy 56 32Numberofbanks/FIshavingGreenofficeguide 56 32Numberofenvironmentalriskratedprojects 17,442
734
Number of environmental risk rated projects andfinanced
14,870
811
Amount disbursed against rated projects (in millionTaka)
668,190 32,833
Numberofsolarpoweredbranches 493
3
NumberofsolarpoweredATM/SMEunits 249
0
Onlinebranches(as%oftotalbranches) 74.87% N/AAmountdisbursedasgreenfinance(inmillionTaka) 132,385.92 3,232.36Direct green finance as % of total funded loandisbursement
0.56% 2.02%
Amountutilizedforclimateriskfund(inmillionTaka) 147.78 1.00Amount utilized for green marketing, training anddevelopment(inmillionTaka)
15.64 0.75
The GoB has also extended a re-financing scheme through the state-owned intermediaryInfrastructure Development Company Limited (IDCOL), to finance alternative energy generation
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projectssuchassmallscalesolarandmicrogrids, to improveenergyaccess for those living inoff-gridareas(MinistryofPower,EnergyandMineralResources,2016).Asofnow,450MWrenewablesarebeingimplementedhavingashareof2.97%intheoverallenergygenerationmix12.
4.4 Institutionallandscape
Thissectionpresentsanoverviewofthekeyactorsrelevantformobilisingprivatesectorinvestmentfor climate change, followed by a summary of past or ongoing initiative fromother developmentpartnerstoaddressbarrierstoprivatesectorinvestment.
4.4.1 Reviewofkeyactorsrelevantwithrespecttoprivatesectorengagementinclimatefinance
This section provides an overview of Bangladeshi actors who play a role in engaging the privatesectorinfinancingclimate-relatedprojects.
• Governmentinstitutionsandregulatoryagencies:Ministriesandagencieswithamandateon private sector engagement and development, PPP, resource/finance mobilisation andclimatepolicy;
• Solutions and technology providers/manufacturers: Industrial companies andmanufacturers developing low-carbon and climate resilient goods and services in the foursub-sectors:improvedcropproduction,EEinmainindustries,REandtransport;
• Commercialbanksandotherfinancialinstitutions:Commercialbanks,insuranceandotherfinancialinstitutionscanprovideaccesstofundingtosolutionsandtechnologyprovidersinthefoursub-sectors;
• Academicandresearch institutions,consultingfirmsandthinktanks:Theseorganisationsare relevant since theyhavea specialisedand in-depth knowledgeof specific sectors thatcanbeleveragedtosupportinvestmentdecisionsandprovidegeneralguidance.
• Business and industry associations:These associations bring different business categoriestogetherandarekeyinraisingawarenessandprovidingcapacitybuildingtosolutionsandtechnologyprovidersinthefoursub-sectors;
• Developmentpartners andinternationalfinanceinstitutions:TheseareinternationalandregionaldevelopmentorganisationswhoareengagedinBangladeshandcansupportprivatesector-investments through technical assistance programmes and low-cost concessionalfunding.
Figure7providesanoverviewofthekeyactorsineachoftheabovecategoriesinthecontextofselectedsub-sectorsforBangladesh
12Pleaseseehttp://www.sreda.gov.bd/formoreinformation.
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Figure7:Stakeholdermap(source:preparedbytheauthors)
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Intermsofresourcemobilisation,itshouldbenotedthattheEconomicRelationsDivision(ERD)undertheMinistryofFinance(MoF)dealswithbilateralandmultilateraldevelopmentpartnersinordertomobiliseexternaleconomicandtechnicalassistanceforthedevelopmentofBangladesh.ERDisalsoactingastheNationalDesignatedAuthority(NDA)undertheGreenClimateFund(GCF),andisapoliticalfocalpointfortheGlobalEnvironmentFacility(GEF),whiletheMoEFisthedesignatedauthorityfortheAdaptationFundandtheoperationalfocalpointfortheGEF.ItshouldbenotedthatIDCOLgotaccreditedatthe17thGCFBoardmeetinginJuly2017asadirectaccessaccreditedentityandassuch,cansubmitfundingproposalsandconceptnotesdirectlytotheGCF.
FurtherinformationabouttheseprimaryandsecondarystakeholderscanbefoundinAnnex4.
4.4.2 Reviewofpastandexistingdonor-ledinitiativesin-countrytoaddressbarriers
Table11presentsanoverviewofpastandongoinginitiativesbydevelopmentpartnerstoaddressbarrierstoprivatesectorinvestment.
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Table11:Reviewofdevelopmentpartners’programmestotackleinvestmentbarriers(source:preparedbytheauthors)Institution Programme Description
AsianDevelopmentBank(ADB)
Pilot Program for ClimateResilience (PPCR)interventions:Coastal Towns InfrastructureImprovement Project (2013-2020)Strengthening the Resilienceof the Urban Water Supply,Drainage, and Sanitation toClimate Change in CoastalTowns(2012)Climate Change CapacityBuilding and KnowledgeManagement(2011-2013)NonPPCRinterventions:
ADB is the lead agency operationalising the PPCR inBangladesh,with theWBand IFC taking responsibility forspecificinvestmentcomponents.ThesetwoinvestmentprojectsadministeredbyADBaimtoenhance the resilience of critical freshwater systems invulnerable coastal towns, and all-weather roads andcoastal infrastructure in 12 rural coastal districts toimprovesocialservicesandeconomicopportunitiesinruralandcoastalcommunities.ThisprojectaimstoequipMoEFwiththerequisitehumanresources and technology for managing and coordinatinginvestments in and knowledge on climate-resilientinitiatives.Since 2009, ADB’s non-PPCR infrastructure interventionshave includedclimateproofingaspects,aswellasclimatedisasterriskreduction(DRR)projects.
ClimateandDevelopmentKnowledgeNetwork(CDKN)
Readinessofprivatesectorinvestmentinclimatechange,(2015–2016)
Funded a technical assistance project to raise awarenessand supporting the private sector in accessing the GreenClimate Fund (GCF) and the opportunity that the PrivateSectorFacility(PSF)underGCFpresentsforaccessingfundsforclimateanddevelopmentinvestments.Thisprojectwasimplemented by Acclimatise in collaboration withInternational Institute for Environment andDevelopment(IIED) and International Centre for ClimateChangeandDevelopment(ICCCAD).Also funded a project involving Ricardo and NACOM tosupporttheGovernmentofBangladeshinimplementingitsNDC. The aim was to provide the Government ofBangladesh(GoB)withsupportinpreparingandplanningfor implementation of the quantified mitigationcontribution in its INDC, by developing sectoralmitigationactionplansforthepower,transportandindustrysectors,alongwithanoverarchingNDCimplementationroadmapforthesesectors.
DanishInternationalDevelopmentAgency(DANIDA)
Inclusivegreengrowth,(2016-2021)
Through a thematic focus on improving climate resilienceandincomegenerationamongthepoorandvulnerabletoclimate change as well as promoting private sectorinvestmentsinsustainableandefficientenergysolutions.
Food andAgriculture
BangladeshCountryProgramming
A strategic document for FAO in Bangladesh. It sets outFAO’s priorities for the current 5 year period, in its
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Organization(FAO) Framework (CPF), (2014 –2018)
technical and development assistance to the GoB and isaligned with the 6th Five-Year Plan for 2011-2015 of theGoB. It is also a tool to help mobilize resources in aprogrammaticmanner,ratherthanonaproject-by-projectbasis. (FAO, 2014)The FAO provides a coherent set of 12priority investment programmes to improve food securityandnutritioninanintegratedway.ThetotalcostoftheCIPisestimatedatUSD7.8billion.Ofthis,USD2.8billionarealready financed through allocated Government budgetresourcesandcontributionsbyDevelopmentPartners.ThefinancinggapisthereforeUSD5.1billion,ofwhichUSD3.4billionhavebeenidentifiedasfirstpriorityrequirements.
DeutscheGesellschaft fürInternationaleZusammenarbeit(GIZ)
Climate Finance Readiness.Supporting StrategicEngagement of the PrivateSector’project,(2015–2016)
Itaimsatundertakingadesk-basedstudy,countryfocusedcase studies, and finally workshops facilitating public-privatedialogueintwopartnercountries,sothatNDAandAccreditedEntities (AEs)willbebetterequipped toadoptmore strategic approaches to engage the private sectorandfinancialactorstoundertakeclimateinvestments.Thestudy will target two countries and Bangladesh has beenidentified as one potential recipient. This study wasundertakenfromDecember2015tillJune2016.
Global ClimatePartnership Fund(GCPF)
EEinthetextileindustry Works with the Bangladeshi textile industry by providingfunding to two partner banks that support garmentcompanies in increasingtheirenergyefficiency.Theyfundthe deployment of EE machineries in the ready-madegarmentsector,financingequipmentsuchaslabelweavingmachines, dryers, irons and washing machines (GlobalClimatePartnershipFund,2016).
• CityBankreceivedUSD30millionin2016.• SoutheastBankreceivedUSD10millionin2016.
Green ClimateFund(GCF)
Readiness support from GCFfor the strategic frameworkfor engagement with theFund, including thepreparation of countryprogrammes,(2016)
• Identifying opportunities to involve the privatesector, including MSMEs, and leveraging theirability to implement Bangladesh’s programmingpriorities;
• Clarifying the roles of prospective public andprivate sector entities in implementingBangladesh’s programming priorities with respecttoGCF,and;
• Developing clear metrics to screen projectproposals for GCF submission, based on policiesand strategies of the GoB GCF and other globalcommitments
InfrastructureDevelopmentCompanyLimited(IDCOL)
Sustainableandenvironment-friendlyinvestments,ongoing
Catalyse and optimise private sector participation inpromotion, development, and financing of infrastructure,RE and energy efficient projects in a sustainable mannerthrough public-private-partnership initiatives. Specificprogrammesare support to the infrastructure,RE,EEandadvisoryservices.
InternationalFinanceCorporation(IFC)
Strategic Program for ClimateResilience (SPCR), (2010- on-going)
Bangladesh’s Strategic Program for Climate Resilience(SPCR) was developed in 2010 under the IFC, the WorldBank (WB)and theAsianDevelopmentBank (ADB).There
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is an important focusonengagingwith theprivate sectorincluding local financial intermediaries (insurancecompanies and commercial banks). There are importantopportunities to learn from their experience in engagingwith the private sector on adaptation (including privatefinancialandbankinginstitutions).
JapanInternationalCooperationAgency(JICA)
EE and ConservationPromotion Financing Project(2016-2022)
Provides concessional funding to the Sustainable And REDevelopmentAuthority(SREDA)tofinanceEEmeasuresinthe cement and textile industries, with IDCOL acting as afund manager of this scheme.Meghna CementMills hasreceived Tk 127 crore (1.27 billion) at 4 percent interestrate for its Vertical Roller Mill (VRM) plant in Mongla.BangladeshExportImportCompanyLtd,PrettyEcoVillageLtd, and Tithi TextileMills (Pvt) Ltd. also received Tk 110crore, Tk 84.4 crore and Tk 57.76 crore respectively fromtheSREDAfinancingscheme.
SustainableEnergyforAll(SE4ALL)
Bangladesh CookstoveProgram(2014–2018)
LaunchedbyUNSecretaryBanKiMoonin2011alongwithaUNGeneralAssemblyResolutiondeclaring2012theYearof Sustainable Energy for All. Pursues the followingobjectives:
• EnergyAccess:ensureuniversal access tomodernenergyservices,toincludeelectricityandcleancookingfacilitiesby2030;
• Energy Efficiency: double the rate of increase inenergyefficiencyby2030;
• RE:doubletheshareofREintheglobalenergymixby2030
SE4ALL is involved in the country via the BangladeshCookstoveProgram
UnitedNationsDevelopmentProgramme(UNDP)
Country work programme,(2017-2020)
Prioritiesare:• Ensuring economic growth is inclusive and
supportseconomicopportunities,particularlyforwomen
• Improvingsocialpoliciesandprogrammes,withafocus on good governance and structuralinequalities
• Building resilience and improving environmentalsustainability.
UNDP intends to mobilise resources to secure privatesector partnerships opportunities. Partnerships with theprivatesectorwillbeexploredthrough“BusinessInitiativeLeading Development”, the Federation of BangladeshChambersofCommerceandIndustry,andtheBusinessCalltoAction.
WorldBank Bangladesh Insurance SectorDevelopmentProject, (2017–2022)Power System Reliability and
Aims to strengthen the institutional capacity of theregulator and state owned insurance corporations andincrease the coverage of insurance in Bangladesh (WorldBank,2017).Aimstoimprovethereliabilityandefficiencyofthepowersystem in Bangladesh through optimization of dispatch
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Efficiency ImprovementProject,(2017-2021)Bangladesh Weather andClimate Services RegionalProject,(2016–2022)
operation(WorldBank,2017).Aims to strengthen national capacity for weather andclimate services. The main objective is to strengthen thecapacity of the GoB to deliver weather and climateinformationinprioritysectors(includingagriculture)andtoprepare for climate variability and hydro-meteorologicaldisasters(WorldBank,2015).
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5 Preliminaryassessmentofpossibleinvestmentareasfortheprivatesectorinprioritysub-sectors
5.1. Prioritysub-sector1:Improvedcropproduction
During the stakeholder consultations, itwasmentioned that there is an immenseopportunity forprivateentitiesto invest intheagriculturalsectoras itplaysavitalrole inthecountrytofeed160millionpeopleandrepresents15%ofitsGDP(WorldBank,2016).
Businesses in the agriculture sector know that erratic rainfall trends, flooding, sea level rise andsalinisation, and increasing temperatures directly affect agricultural production and yields, alongwith food security and livelihoods. Climate change is expected to lead to significant agriculturallosses, corresponding to approximately 3.1%ofGDP estimated annually between 2005 and 2050.TheselosseswillamounttoUSD36billioninlosteconomicvalue(WorldBank,undated).
Fourrelevantactorsintheagribusinesssectorwereconsultedaspartofthisstudy,includingthreeprivate-sectorentities:AdvancedChemical Industries (ACI),GreenDelta InsuranceCompany(GDIC)andLalTeeralongwitharesearchinstitution,theBangladeshAgriculturalResearchCouncil(BARC).
Basedon this consultationanddesktop research, two typesof investmentwere identified for thissubsector:
• Weather index- based agriculture insurance, mentioned by two interviewees (BARC andGDIC);and,
• Production, distribution and adoption of high yielding and climate-resilient seeds,mentionedbythreeoftherespondents(ACI,BARCandLalTeer).
Foreachof these investments, keyopportunities andbarriers arepresented in the following sub-sections.
5.1.1. Weather index- based agriculture insurance:
Scaleanddevelopment stage:Overall, themarket forweather index-basedagriculture insuranceand related products is nascent in Bangladesh, with a significant potential for future growth ifexistingbarrierstodevelopmentanduptakeareovercome.Asanexampleofthepotentialmarketsize,9million farmershadweather index insurance in Indiabetween2010and2011,witha totalpremiumvalueofUSD258million13.
Opportunities: GDIC will work towards multiple pilots in 2017 and 2018 to deliver agricultureinsurance as a bundled product with banks, MFIs, seed companies, input suppliers and contractfarmingentities.ThesepilotsareexpectedtocreateademonstrationeffectinBangladeshaswellas
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toglobalobservers,highlightingthevalueofagricultureinsuranceintheagriculturevaluechain.TheprojectplanstoleveragetheexistingnetworkofGDICtolinkupwithseveraldistributionchannels,targetingavarietyoffarmersforscaleandvolumetoreachcommercialsustainability.
GDIC started an initiative in 2015 with the International Finance Corporation (IFC) and PRAN, tolaunchalocalisedweatherindex-basedagricultureinsuranceforcassavafarmersinaDhakadistrict(GreenDelta,2015).Theinsuranceprogrammeaimstoinsurecassavafarmersfordamagesduetolow temperatures and excessive rainfall. Weather index-based insurance means that insurancepaymentsaretriggeredifarainfallindex,forexample,fallsbelowacertainleveloverapredefinedperiod.Theproduct isbasedonmodellingofweather risksanddoesnot require theservicesofaclaims assessor, allowing for claims settlement process to be quicker and more objective. Theindemnity is calculated based on a pre-agreed sum insured per unit of the index (e.g.dollars/millimetresofrainfall).PRANisbearingallexpenses,whilefarmersarejustprovidinglabourandland.OtherpartnersrunningcropinsuranceschemesareSupremeSeedsLimitedforhybridriceandRenaissance,anNGO,fortomatoes(WorldBank,2015-2016).
Another pilot project funded by the Japan Fund for Poverty Reduction (JFPR) is currentlyimplementedandprovides aUSD2million grant to develop and implementweather index-basedcrop insuranceasanadaptation tool to reduce theclimatevariabilityandextremeweather (ADB,undated).AsofFebruary2017,18trainingprogramswereorganizedtotrain430officialsfromIDRA,SBC,BangladeshMeteorologicalDepartment(BMD),privateinsurancecompanies,non-governmentorganizations (NGOs) and microfinance institutions (MFIs). Work on preparing data grid forBangladesh and drought index product design is completed. The contract has been awarded forautomatedweather-stationsequipmentand20weatherstationswereinstalled.ContractawardforPovertyimpactevaluationandMISiscompleted.Atotalof10,007farmersjoinedintheawarenessprogram,and5,399farmhouseholdswereenrolledinthecropinsuranceprogramme.
Barriers:
• Policyandregulatoryconstraints,thatwerementionedbyLalTeerandGDIC.Aclearpolicysignal would help encourage crop insurance uptake. For example, crop insurance ismandatoryinIndia,whichhasstimulatedalargemarketforweatherindex-basedinsuranceproducts.AconcreteexamplewasprovidedbyGDIC,whohighlighted that theMinistryofAgriculturewasnotreadytodesignapolicyaimedtosupportinsurancecropschemesuntilthe results of the pilot activity are known. ACI underscored the issue of policyimplementation in thecountryandtheneedofawareness raisingandcapacitybuilding toencourageactionfromgovernmentinstitutions.
• Inadequate infrastructure and data: Automated weather stations are few and the datarequiredformodellingrisksisoftenpoororinaccessible.
• Lackofinternalcapacity:Bangladeshi insurancecompaniesoftendonothavethecapacitytodesignandpricecomplexindexinsuranceproducts;furthercapacitybuildingisrequired,as in the case of GDIC, where IFC provided technical advisory services for productdevelopment.
• Lackofawarenessinthemarket:Farmersareoftennotawareofthebenefitsofinsurance,thus hindering demand and market penetration. Insurance awareness is a totally newconcept; the risks that farmers facedue tochanging futureclimatecannotbeassessedby
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referringtopastexperience,thereforeinsurancemayseemverycostlytothem(IFC,2010).Greater information to build awareness of climate risks and risk management tools isneeded.
• Highcosts:PremiumsarecurrentlyveryhighduetothehighriskinBangladesh,takingintoaccount factors such as climate change and the increasing frequency of extreme events.Subsidieswouldhelptoovercomeinitialinvestmentbarriers,introducethebenefitsoftheseproductsandhelpstimulatedemand.
Recommendation:Conductahigh-levelmarketassessmentofthepotentialforscalingupweather-indexinsuranceforfarmersbuildingonthepreliminaryresultsfromthepilotschemeimplementedby PRAN, IFC and GDIC. GDIC mentioned that the MoF and MoA are interested indeveloping/expandingcropinsurance,butlow-awarenessexistswithinbothinstitutions.Theywouldlike to see the pilot project’s results first before going for a larger scale introduction of cropinsuranceschemes.Policyandguidelineswillbenecessarytosupportthemainstreamingofthistypeofinsurance.
Further research/consultation: Consultation with PRAN, IFC and GDIC is required to confirmopportunitiesforcollaboration.Thiswillbedependentonwhenpreliminaryresultsofthepilotscanbe shared and disseminated (expected to end in 2018-2019). ConsultationwithMoAwill also berequiredtoconfirmtheirinterestinpartneringwiththeMPIprojecttomovethisforward.
5.1.2. Production,distributionandadoptionofhighyieldingandclimate-resilientseeds
Scale and development stage: From a global perspective, climate-resilient seeds represent asignificant market opportunity.World seedmarkets were worth USD 45 billion in 2012. If a lowestimateof 20%of thosemarketswereat risk, then there couldbeamarketofUSD9billion forclimate resilient seed types (PricewaterhouseCoopers, 2013). In Bangladesh, the market forResearch & Development (R&D) and marketing of high yielding and climate-resilient seeds haveentered the growth andmaturity stage. The yearly turnover of ACI and Lal Teer is over USD 10millioneach,encompassingallactivitytypes.
Opportunities: In Bangladesh, there is challenges faced by farmers (Wardad, 2015). During theconsultations,LalTeermentionedthatanumberofprivatecompanieshadalreadybeenworkingonseedproductionandhighyieldingvarietiesforseveralyearsandwereabletodevelopamarketfortheirproducts., including saline resistantvarietiesofvegetable seedsandproduction technologiesforhigh salinity affected coastal areasofBangladesh. BothACI and Lal Teer areengaged in seedproductionand seeapotential anoverall demand forquality seeds, a sector inwhich theprivatesector’s share rose from 11% in 2005 to 34% in 2013 (Parvez, 2015). Private sector actorsacknowledge that thedevelopmentofclimate resilientseeds is thenextchallengeon theagenda,sinceincreasingsalinityandinundationsarepressingforitsdevelopmentinBangladesh.TheirviewwassupportedbytherepresentativefromtheBangladeshAgriculturalResearchCouncil(BARC).
It shouldbealsonoted thatunder thePPCR, the investmentproject “PromotingClimateResilientAgriculture and Food Security” focuses on introducing climate resilient technologies and training
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farmers touse these. Theproject isUSD3million in total fundingand runs from2013until 2019(ClimateInvestmentFunds,2010).
Barriers:
• Seedregulation:itisdifficulttoreleasenewseeds;underthecurrentSeedPolicy,ittakesatleast2-3yearsforapprovalandrelease;
• Lackoflowcostfinance:atthemomentagribusinessesmustusecommercialfinanceat16-18%interestrates.Lowcostorconcessionalfinanceismostlyunavailable,whichwouldhelpstimulatefurtherinvestmentinclimateresilientactivities;
• Inadequate data: there is a lack ofweather and climate data in BangladeshwhichwouldhelpguidetheplanningofR&Dactivities.Relevantdataisnotalwaysaccessible,forexampleoncroppingpatterns;furthermorethereisnoanalysisofthisdata;and,
• Lackofknowledgeandcapacityonclimatechange:in-housecapacityissometimeslacking,particularlywhenitcomestodevelopingprojectproposalsforexternalfunding.
Recommendation: Companies producing high-yielding and climate-resilient seeds need to beprovidedwithadequateR&Dsupportinordertobeabletoinvestindevelopingnewproducts.Lowcostfinanceisneededforthissectortoaccessaffordablecapitalandcoverthetechnologyrisksthatarisefromdevelopingnewseedvarieties.Inaddition,farmerswouldbenefitfromawarenessraisingeventsthathighlighttheadvantagesofsuchseeds,whicharesometimesseenascostlyinvestmentssince they can require complementary cultivation techniques. To face these constraints, low costfinancewouldalsosupportfarmersinprogressivelyresortingtoclimate-resilientseeds.
Further research & consultation: Consultation with IFC is required to confirm opportunities forcollaboration.Thiswillbedependentonwhenpreliminary resultsof thepilots canbe sharedanddisseminated(PPCRproject isexpectedtoend in2019).ConsultationwithACI,LalTeer,BARCandMoAwillalsoberequiredtoconfirmtheirinterestinpartneringwiththeMPIprojecttomovethisforward.
5.2. Prior ity sub-sector 2: RE in the power sector
The current total power generation capacity of Bangladesh is 15,599.73MW, including 2.89% ofrenewables(SREDA,2017).Duringthestakeholderconsultations,itwasmentionedthattheinstalledtransmissioncapacityofBangladeshnationalgridhasreached15,379MWasofFebruary2017.TheGoBintendstoinstall60,000MWofadditionalelectricitygenerationcapacityby2040,includingatleast10%oftotalcapacitycomingfromRE(SREDA,2017).
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Figure8:Breakdownoftheenergymix(%)(source:SREDA,undated)
Figure9:BreakdownoftheREshare(%)(source:SREDA,undated)
TheenergysectorisanimportantcontributortoGHGemissions.Furthermore,increasingaccesstotheelectricitynetworkisakeydevelopmentalpriority(SREDA,2015).Although18%ofthecountryhasnoaccess toelectricity the remaining82%significantly relyon fossil fuelbasedenergywithamajority of the electricity coming from gas-powered thermal stations and diesel generators usedsubstantiallytomeet increaseindemandsduringsummermonths(SREDA,undated).Althoughtheoverall GHG emissions of the country remain relatively low in comparison to its neighbouringcountries, theshareofenergysector inGHGemissions issubstantial (i.e.nearly30%tototalGHGemissions).Theemissionsfromtheenergysectoralonehaveincreasedby154%between1994to2005, particularly due to an increase in fugitive emissions (unintended gas leaks from pipes andvalves)fromburningfossilfuels(UNFCCC,2006).Bangladesh’sNDCalsorecognisespowersectorasoneofthefocussectors(amongsttransportandindustry)tomeetthetargetof5%reductioninGHGby2030(MoEF,2015).
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• Investments in RE can help to achieve this target, as Bangladesh has a considerable REpotential.Sofar,thecountryhassignificantlyinvestedinREprojectsinruralareasthroughprojects such as Solar Home Systems (SHS), solar micro grids and solar irrigation pumps.Targetsarealsosetforgridbasedtechnologiessuchasutilityscalesolarandwind.Despitegreat prospects, utility-scale projects have been less successful in harnessing renewablesourcesofenergy.Thisismainlyduetolandscarcity,thedistancetogridpowerevacuationfacilityfromthesitelocation,aswellasthepredominanceoflow-lyinglands(whichmeanshighupfrontcosts forprotecting themfromflooding). HydroPowerGenerationCompanyLtd.in2016totapintothepotentialofhydropowerthathasnotbeenfullyexploredsofar(GulfTimes,2016).Bangladeshisarelativelyflatcountrywithoutmountainousareaswhichleadstolimitedrivercurrentsandhampersadetailedassessmentofhydropowerpotential.
• Solar: Has an immense potential, given Bangladesh’s geographical location. The countryreceivesanaveragedailysolarradiationof4-6.5kWh/m2(Rahmanandall,2013).TheGoBexpectstodeliverbothutility-scaleandsmaller-scalesolar.Small-scalesolarincluderooftopsolar on large private buildings/factories, government buildings and solar home systems(SHS)foroff-gridresidentialproperties,andsolarmini-gridsandsolarphotovoltaic(PV)cellsaregainingacceptanceforprovidingelectricitytohouseholdsandsmallbusinessesinruralareas;and,
• Wind:ThePowerSystemMasterPlan(PSMP)estimatedthepotentialwindpowerenergytobe about 637MW (MoPEMR, 2016). An onshore wind power potential mapping study iscurrently being carried out and will inform decisions on the desired level of uptake inonshorewind.
Foreachof these investments, keyopportunities andbarriers arepresented in the following sub-sections.OtherREsources includebiofuels,geothermal,rivercurrents,andwaveandtidalenergy,howeverthepotentialofthesesourcesisyettobeexplored.
Scaleanddevelopmentstage:
BasedonIFC’sassessmentofopportunitiesforclimate-smartinvestmentsintheNDCofBangladesh,theoverallpotentialmarketforREinBangladeshisworth$17billion.IFCestimatedBangladeshwillattract$7.1billionforrenewablesby2020.In2008,theGoBadoptedaREpolicy,withtheultimategoal of reaching 5% of total generation from renewable sources by 2015 and 10% by 2020 (IFC,2016).• Biogas:Presently there are about 50,000 household and village biogas plants throughout the
country (KhanandShahjahan,2014).There isahugepotential forexpansion in ruralareas. Inaddition,thissectorislargelycontrolledbytheprivatesectorwhowillwanttoactivelymanagetheirwastestreamsandmaximisethepotentialreturnsfromthem;
• Ricehuskandsugarcane-basedbiomass:IFCestimatedthatbiomasswillattract$100millionby2020,withatotalpotentialfrombiomassisabout286MW(IFC,2016).Thereisthepotentialforbiomass-based electricity to be generated from sugar cane, rice husks aswell aswheat strawand animal waste from livestock industry. The scope for generation of electricity from sugarcaneisgreater,withthepossibilityofdeliveringmorethanexpectedbytheNDCby2030underthe right conditions and with appropriate support through a Feed-In Tariff (FIT). However, it
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shouldbenotedthanrawmaterialsfromsugarandricehusksaregenerallyascarcecommoditywithotherpotentialconflictinguses,andthiscouldbealimitingfactortotake-up.Furthermore,current usage of sugar cane and rice husks to produce energy is inefficient. And biomass isgeographically scattered across Bangladesh and also has seasonal variation. It is therefore,reasonabletoassumethatmorewouldneedtobedonetoencouragemoreefficientgenerationofenergyfrombiomassandtoincreaseoveralllevelsofelectricitygenerationfrombiomass.Itisimportanttonotethatthescopefor increaseddeliveryofelectricityfromsugarcanecouldbeachieved through more efficient cogeneration process (such as boosting the existing boilerpressures)asopposedtothroughincreaseduptake;
• Hydro: The potential for hydroelectricity has not been explored yet. While hydropowerassessmentshaveidentifiedsomepossiblesiteswhichcouldsupply10kWto5MW,thesehavenot been built yet.Micro andmini hydro have also limited potential in Bangladesh, with theexceptionofChittagongHillTracts(KhanandShahjahan,2014);
• Solar: IFC estimated that solar PV will attract $4 billion by 2020.About 264,000 householdscurrently use solar energy (IFC, 2016). 161MWof SHSswere installed by 2016,with 6millionSHSstobefinancedbyIDCOLby2021(IDCOL,2017).Thiswill leadtoanestimatedgenerationcapacityof220MWofelectricity. IDCOLhasalsoapproved18solarmini-gridprojects,amongwhich7areoperationalwhiletherestareunderconstruction,providingaccesstolow-emissionelectricityforalmost5000ruralhouseholdsinBangladesh.IDCOLhasfurthertargetstoinstall50solarmini-gridsby2018.The2016PowerSystemMasterPlan(PSMP)indicatedthatsolarpowerpotentialinthecountryisabout2,675MW;and,
• Wind: The potential for wind is not fully understood yet (Khan and Shahjahan, 2014). IFCestimatedthatwindwillattract$3billionby2020(IFC,2016).Anonshorewindpowerpotentialmapping study is currently being carriedout andwill informdecisions on thedesired level ofuptakeinonshorewind.
Bangladesh'sREsectorhassofarprimarilyfocussedonsmallscaleoffgridrenewabletechnologies,suchasSHSandmini/manosolargrids.However,Bangladesh’sGHGreductionpotentialsignificantlylies with investment in large scale infrastructure. In comparison to the off-grid market, therenewablemarketintheutilitysectorisanewbutevolvingmarket.Bangladesh’sNDC,theSREPandtheREdevelopmenttargets(2105-2021)allcallformostofnewenergycapacitytocomefromutilityscalesolarandwind.InfacttheREtargetsspecificallyproposetoholdauctionsforIPPinvestmenton government land and to negotiate fixed tariffs for private investment. The private investmentcommunityisnowinvestinginthesemarketsbutitisstillatanearlystage.
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Table12:PotentialtypesofinvestmentforREresources(source:KhanandM.Shahjahan,2014)
Resources Potential Description
Solar Enormous PublicandprivatesectorWind Resourcemappingrequired Public/PPPHydro Limitedpotentialformacroor
miniMainlypublicsector
Domesticbiogassystem 8.6m3astheaveragesizeofadomesticbiogasplant
Publicandprivatesector
Ricehusk-basedbiomass 300MWconsidering2kgofhusk MainlyprivatesectorCattlewaste-basedbiogas 350MWconsidering0.752m3 Mainlyprivatesector
Opportunities:
TomeettheREtargetof10%oftheoverallenergymixby2020(foratotalof2,000MW)undertheREPolicy,theGoBhaspreparedthefollowingyear-wiseimplementationplan.
Table13:REyear-wisetargetedplan(source:SREDA,undated)
Technology Achievementupto2016(MW)
2017(MW)
2018(MW)
2019(MW)
2020(MW)
2021(MW)
Total(MW)
Solar 200 120 350 250 300 250 1470Wind 2.9 50 150 350 300 300 1153Biomass 0.4 6 6 6 6 6 30.4Biogas 0.63 0.65 1 1 2 2 7.28Hydro 230 - 1 1 2 2 236Total 434 175.65 508 608 610 560 2897
SREDAisresponsibletopromoteanddevelopREandEEactivitiesinallsectors,publicandprivate.The Power division initiated a program to generate 500 MW of solar based electricity for thenational grid. In this program, the private sector has been identified as an essential partner toimplementalionshareofREoncommercialbasis.Themainfeaturesofthisprograminclude:
• Replacementofdieselirrigationpumpswithsolarpower;• Solarminigridpowersystematremotevillages;• Solarparks;• Roof-topsolarpowersolutionforgovernmentownedbuildings,industrialandresidential
buildings;and,• Electrificationofhealthcentres,educationalInstitutions,E-centresatunionlevels,religious
establishmentsandrailwaystations.
CommercialprojectswithopportunitiesforPPPsintheformofaBuild-Operate-Transfer(BOT)mechanismareshowninTable14below.
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Table 14 Commercial projects with PPP/BOT opportunities in the RE sector (source: PowerDivision,undated)
No Typeofprojects CapacityadditioninMW
1 Solarirrigation 1502 Solarmini-grid 253 Solarpark 1354 Solarroof-top,residentialand
commercialbuilding10
5 Solarroof-top,industrialbuilding 20
Total 340
It isestimatedthatUSD2.76billionwillberequiredto implementthis500MWsolarprogramme,outofwhichUSD2.23billionisexpectedtobemobilisedfromdevelopmentpartnerswhiletherestwillcomefromtheGoBandprivatesources(Powerdivision,undated).
It should also be noted that theMutual Trust Bank Limited (MTBL) offers a green product calledGreen Energy Loan which finances customers to set up RE projects such as solar, biogas, wind,hydro,brickkilnfinancing.Thebanklendstomicrofinanceentitieswholendtosmallborrowersforhomeandcommercialuses.Throughmicrofinanceinstitutionstheyhavefunded12solarirrigationprojectsinNorthBangladesh.Otherexamplesofprojectsfinancedincludegreenagroprojectssuchasbiogas,recyclablecups.
Barriers:
• Limitedaccesstolowcostfinanceforsmall-scaleprojects:REprojectsrequireconsiderableconcessionary support as projects are not viable in pure commercial terms. Financialmarkets are less interested in providing affordable capital to such markets. Commercialinterestratestypicallyrangebetween11percentand14percentforREprojects,althoughthe government sometimes provides loans at lower rates for the purchase of capitalequipment;
• Limitedaccesstolowcostfinanceforlarge-scaleprojects:Apartfromarangeoffinancingprograms for off-grid solar, solar irrigation, mini-grids, biogas, and biomass projects, thecountrydoesnothavespecific incentives for largerprojects.Adraft feed-in tariff forwindandsolarprojectshasstalledsince201514;
• Lack of access to land for solar andwind technologies particularly above the scale of 10MW(IFC,2016);
• Uncertainty about long term grid extension by the government (especially for mini-gridinvestors);
• LowFITforsolarinthecontextofhighcostsofgeneration;• Lack of FIT for biogas : especially for the industrial scale, feed-in tariff could encourage
poultryanddairyownerstosellsurpluspowertotheelectricitygrid;• Lackofdutyandtaxwaiverstopromoterenewables;
14Furtherinformationisavailableat:https://www.ifc.org/wps/wcm/connect/51183b2d-c82e-443e-bb9b-68d9572dd48d/3503-IFC-Climate_Investment_Opportunity-Report-Dec-FINAL.pdf?MOD=AJPERES
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• Lack of awareness and capacity gaps regarding technical know-how and technologytransfers;
• Lackofaccesstolowcostfinanceforupfrontcapitalinvestment;and,• LackofawarenessregardingthebusinessmodelsforRE.
Recommendation:There isa lackofexpertiseandcapacityamongstcommercialbankstoconductfinancial due diligence on RE projects. Preferential duty waivers of imported capital RE relatedtechnologies,alongsidepreferentialtaxationpolicyforREventures,alignmentofcommercialbanksto finance RE projects, grant or government budgetary support to implement pilot projects fordemonstrating the business cases for promoting the uptake of specific RE technologies. It is alsorecommendedtodevelop/rolloutanawareness-raisingcampaignonREsavingsandbusinesscases.Adetailedassessmentofthebiomasspotentialwouldberequired.Acasestudytoidentifylessonslearnt and challenges in developingbiogasprojects (in particular in thepoultry anddairy sectors)withaviewtosupportscalingupandreplicationinruralareas.
Further research & consultation: Consultation with commercial banks to understand barriers toproviding financial packages tailored to specific RE technologies. Further consultation with RREL,Grameen Skhakti, Solaric and Energy Pack- RE to identify specific opportunities for collaboration.Further consultationwith actors active in biomass, biogas andwind is required, as our sample ofstakeholders consulted is biased towards solar. Consultation regarding the pre-assessment andmappingstudyforassessingrespectivelythehydropowerandonshorewindpowerpotential.
5.3. Prioritysub-sector3:IndustrialEE
ThePowerDivisionwasconsultedaspartofthisstudy.ItsrepresentativeconfirmedthatEEwasoneof the division’s main priorities. Based on this consultation and desktop research, two priorityindustrieswereidentifiedforthissubsector:
• Cement–moving from traditional rollingmills to vertical rollingmills, andmore efficientdrivesystems;
• Garment/ Textile– standard EE improvementmeasures (e.g. boilers, lighting and naturalventilationetc.),andchangingtoefficientairjetloomsandhighefficientcentrifugalchillers,attaining water and energy efficiencies, introducing less energy and water consumingchemicaldyes,rainwaterharvesting,efficientboilersandmotorsetc.
According to IFC (2012), both industries have a substantial CO2 saving potential, respectively374,041 Mega Tons (MT) and 112,000 MT CO2 savings per year. The same study describes thegarment industry as being in a high-growth stage. Textiles along with the Ready-Made-Garment(RMG)sectorcontributeto13%ofthecountry’sGDPandrepresentedaUSD3.5billioninvestmentin2012.ItshouldalsobenotedthatBangladeshholds2%ofthemarketshareintheglobaltextilesector(IFC,2012).Thecement industry isalsoan importantplayer intheBangladeshieconomyasthecountry isthe40th largestmarket intheworld.The industrydemandandproductionhasbeensteadily rising since 2005, going from a 5.20% growth rate to almost 15% five years later (IDLC,2011).Asaconsequenceofpopulationgrowth, it isexpected that thedemand forcementwillbe
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maintainedforconstructionpurposes.Asofnow,estimatespointtoanannual9%growthupuntil2021(World’scement,2017).
Foreachof these investments, keyopportunities andbarriers arepresented in the following sub-sections.
Otherindustriesnotcoveredindepthinthisstudyinclude:
• Chemicals and fertilisers – new efficient plant with advanced features of carbon and energyrecoveryandprocessoptimization;
• Steel–movingfrominductionfurnacestoelectricarcfurnaces,scrappre-heatingusingfurnacewasteheat,Combustioncontrolofthefurnace;
• Foodandbeverage–CO2recoveryfromtheexhaustofboilers/captivegenerators
• Paper – CO2 recovery from the exhaust of the boilers/generators for the production of fillermaterialssuchascalciumcarbonate;and,
• Bricks–Mainlytunnelkilnsandintroductionofnon-firedbrick-makingtechnology.
Scaleanddevelopmentstage:
Overall,themarketforEEmeasuresintheindustrialsectorisnascentinBangladeshbutpresentsasignificantpotentialforfuturegrowthifexistingbarrierstodevelopmentanduptakeareovercome.According to IFC (2016), the investment potential for EE could reach USD 600 million by 2020accordingtoconservativevaluations(IFC,2016).
Opportunities:
The GCPF is currently workingwith City Bank and Southeast Bank to finance EEmeasures in theready-madegarmentsector,financingequipmentsuchaslabelweavingmachines,dryers,ironsandwashing machines. Government-owned financial intermediaries (IDCOL and BIFFL) have alsoavailablefundingfortheprivatesectortoinvestintheareaofefficientbrickkiln,furnaceefficiencyimprovementandEEequipmentfortheSMEsector,alongsideefficienthouse-holdselectronics.
Inaddition, SREDAhasdeveloped theEEandConservationMasterPlanwith thehelpof JICAandidentified major industry types and mitigation measures especially for private sector. With thefinancialsupportofSREDA,ithasdevelopedfinancingfacilitiesforprivatesectortoavailsoftloansandimplementthefollowingEEmeasures:
• Wasteheatrecovery ;• Efficientairjetloom ;• Vaporabsorptionchillers;• Co-generationandtri-generation;• EEfurnaceforre-rollingmillsetc.;and,• EEstandardappliancewhichcanberunfromsolarenergy.
SREDAreceivedconcessional fundingsupport fromJICAundertheEEandConservationPromotionFinancingProjecttofinanceEEmeasuresinmainindustries.Thebucketisnotenoughtofinanceall
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measuresbeingforwardedtoSREDAtoreceivesoftfinancingsupport.IDCOL,fundmanagerofthisscheme, has arranged a fund forMeghna CementMills Ltd, a concern of BashundharaGroup, tointroduce energy-efficient equipment under the.MeghnaCementMills has received Tk 127 crore(1.27billion)at4percentinterestrateforitsVerticalRollerMill(VRM)plantinMongla.BangladeshExportImportCompanyLtd,PrettyEcoVillageLtd,andTithiTextileMills(Pvt)Ltd.alsoreceivedTk110crore,Tk84.4croreandTk57.76crorerespectivelyfromtheSREDAfinancingscheme.
BB has also extended its green banking scheme to support similar types of EE measures led byprivatesector.IncollaborationwithIFC,BRACBank(BRAC-B)hasalsorecentlydevelopedaproductcalled-PlanetSolutionanEnergyEfficiencyFinancingLoantoassistreadymadegarmentsandtextileindustries to invest in energy efficiency technology. These include audit and EE equipment forborrowersattherateof6%.Thisisanunsecuredloan(nocollateral)offeredtomanufacturersandexportersintextile.
ThekeymeasuresforEEimprovementsinindustryarepresentedinTable15below.
Table15:OverviewoftheEEmeasures,resourcesrequirements,complexityandtimelineforimplementation(source:NDCIndustryActionPlan,2017)
Measure Description Resourcesrequired
Complexity Timelineforimplementation
Cogeneration Cogeneration(Combined Heat andPower or CHP) is thesimultaneousproduction ofelectricity and heat,bothofwhichareused.Cogeneration can offerenergy savings rangingbetween 15-40% whencompared against thesupplyofelectricityandheat fromconventionalpower stations andboilers (COGENEurope).
Medium tolarge scale ofupfrontinvestment bythe owner ofthefacility
Standardtechnologyandequipmentare availableinthemarket
Mediumto longterm/by2030
Waste heatrecovery (mainlyfrom captivegenerators/boilers)
Waste heat is availablein the industrialfaculties whereelectrical power isgenerated from thereciprocating gasengine based captivepower plant. Theaverage efficiency ofthis type of engine isroughly around30~35%, which means
Small tomedium scaleof upfrontinvestment bythe owner ofthefacility
Standardtechnologyandequipmentare availableinthemarket
Short tomedium term/by2020
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a good amount ofuseful energy is beingleft in the form ofexhaust, that haspotential for recoveryto produce secondarysteam and hot waterfor the same industrialfacilities with the helpofwaste heat recoveryequipment like wasteheatrecoveryboilers.
Condensaterecovery
Condensate is the hot,treated waterproduced as steamreleases its heatenergy. It’s a valuableresource that containsaround 25% of theuseful energy in theoriginalsteam.Itmakessensetoreturnittotheboiler, instead ofdumping it to drain. Itmay be impractical toreturn all thecondensate to theboiler for variousreasons, but in mostapplications a goal of75-80% condensatereturnisreasonable.
Small upfrontinvestment bythe owner ofthefacility
Smallupfrontinvestmentbytheownerofthefacility
Short term / bysix to twelvemonths
Heat recoveryfrom the coolingsystem ofgenerator
Useful energy can berecovered to producehotwater for industrialoperation or to pre-heat the water of theboilers from the lowgradient heat of thecooling system of thecaptive generators. Ithas good potentialwherever captivepower generationsystems are inoperation.
Small tomedium scaleof upfrontinvestment bythe owner ofthefacility
Standardtechnologyandequipmentare availableinthemarket
Short tomedium term/by2020
Implementation ofEE measures likeleak sealing ofsteamandair flowsystems
Leaks in steamdistribution and airflow systems causehuge amounts ofenergy being drain-out
Small upfrontinvestment bythe owner ofthefacility
Can beimplementedwith littlemodificationand
Short termpossibly by sixto twelvemonths
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from the industrialfacilities. Properidentification of thisleaks and timely repaircanensureasignificantenergy savings in theindustrialfacilities.
equipmentsupport
Efficientchillers Chillers with highercoefficient ofperformance(COP),canensure optimizeddelivery of coolingcapacities of chiller. Inthe textile facilities,where it requires hugespace cooling, efficientchiller can play animportant role inreducing the overalldemand of energy forspaceconditioning.
Medium tolarge scale ofupfrontinvestment bythe owner ofthefacility
Standardtechnologyandequipmentare availableinthemarket
Mediumto longterm/2030
Efficientboilers Boilers havingefficiency 90% orhigher can be an idealchoicefortheindustrialowners to effectivelyaddress the issue ofoverall energyreduction in theoperation and gaineconomicbenefit.
Medium tolarge scale ofupfrontinvestment bythe owner ofthefacility
Standardtechnologyandequipmentare availableinthemarket
Mediumto longterm/2030
Efficientmotors The incrementalefficiency difference ofthe energy efficientmotors over thetraditional inductionmotors can ensuresignificant reduction ofdemand for electricalenergy and ensureeconomicbenefit.
Small tomedium scaleof upfrontinvestment bythe owner ofthefacility
Small tomediumscale ofupfrontinvestmentbytheownerofthefacility
Short tomedium term /by2020
Barriers:
• LackofawarenessregardingthebusinesscaseofspecificEEmeasures;• Lackofenergysavings/auditsadvertiseasenergysavingsarenotalwayseasilymeasured;• UpfrontcapitalinvestmentsofEEmeasures;and,• Interruption of production operations when installing new EE measures, leading to extra
coststoprivatecompanies.
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Recommendation:
PreferentialdutywaiversofimportedcapitalmachineriesaswellasEEequipmentiscriticalfortheupdateofEEmeasures,alongsideimprovedaccesstolowcostfinancetocoverupfrontinvestment,such as preferential taxation policy for EE ventures such as ESCOS, aligning commercial banks tofinance EE projects, grant or government budget or support to implement pilot projects fordemonstratingthebusinesscasesoftheuptakeofspecificEEmeasures.Itisalsorecommendedtodevelop/roll out an awareness-raising campaign on EE savings/benefits in the cement andtextile/garmentindustries.Trainingofenergyauditconsultantswillalsoberequired.
Further research& consultation:Consultationwith theGCPF, IDCOL, BIFFL, BB and SREDA undertheir respective initiatives is required to define possible collaboration opportunities, ensuresynergies and avoid duplication of work. Further consultation may also be required with energyauditsconsultantsandagroupofindustrialunits(itshouldbenotedthatnoconsultationwiththesetwogroupswasundertakenaspartofthisstudy,butresultsoftheconsultationunderthepreviousCDKN-fundedNDCimplementsupportprojectwereintegratedintheanalysis).
5.4. Prioritysub-sector4:Modalshift
During the stakeholder consultations, it was mentioned that there are a number of megainfrastructure projects in the transport sector, such as the Dhaka Mass Rapid Transit (MRT)(expectedtobecompletedin2021),theDhakaMetrorail(MRT)1-6line(expectedtobecompletedin2021), theDhakaBusRapidTransit (BRT) line3 (expected tobecompleted in2018), theDhakaBusRapidTransit(BRT)line7(expectedtobecompletedin2035),theDhakacircularroad(currentlyat feasibility study stage), and the Dhaka- Chittagong elevated express highway (under a PPParrangement,currentlyatfeasibilitystudystage,expectedtostartinJanuary2018).
TheRoadTransportandHighwayDivisionwasconsultedaspartofthisstudy.
Based on this consultation and desktop research, a type of investment were identified for thissubsector,namelytheoperationofthemetrorailstations,includinge-ticketing.
Because of lack of information, other investments were not included in the study such as fueloptimisationdevicesformarinetransportation(e.g.ferry)androadfleets(e.g.lorriesandbuses)androolroad/flyoverhighwayroadinfrastructureonaBOTbasis,andvehicletestingcentres.
Forthisinvestment,keyopportunitiesandbarriersarepresentedinthefollowingsub-sections.
Scaleanddevelopmentstage:
Overall, the market for the low-carbon transport sector is nascent in Bangladesh but presents asignificantpotentialforfuturegrowthifexistingbarrierstodevelopmentanduptakeareovercome.
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BasedonIFC’sassessmentofopportunitiesforclimate-smartinvestmentsintheNDCofBangladesh,the overall potentialmarket for low-carbon transport is worth $ 2 billion by 2020 (IFC, 2016). In2013, the GoB adopted a National Integrated Multimodal Transport Policy which mentions themodernizationofticketingsystemasapriority.
Opportunities:
TheRoadTransportandHighwayDivisionhasexpressedtheir interest inengagingwiththeprivatesector tomeet thegrowingneeds foramoreefficientandmultimodal transport infrastructure, inparticularthroughPPPs,includingBOTormanagementcontracts.Table16providesanoverviewofexistingPPPsontransportinBangladesh.
MRTLine-6 isanelevatedMetroRail systemtobe implemented inDhaka, running fromUttaratoMotijheel and serving 16 stations. The project will alleviate traffic congestion and improve airpollution in Dhaka City by constructing 20.1 kilometres ofMRT, thereby contributing to regionaleconomic development and improvement to the urban environment (JICA, 2016).The project isjointlyfinancedbytheGovernmentofBangladeshandJICA.ThepartialtrialoperationofMRTLine-615uptoAgargaonisexpectedtostartbytheendof2019,whilethecommercialoperationofthefullsystemisexpectedbytheendof2020.
Table16:13PPPtransportprojectsunderwayinBangladesh(source:PublicPrivatePartnershipAuthority,2017)
Project Status DescriptionDhaka-ElevatedExpressway
ConstructionStage
The purpose of the Expressway is to increase trafficcapacity within and around the city by improvingconnectivitybetweennorthernpartofDhakaCitywiththeCentral,SouthandSouth-Easternpart.Inadditionto providing a much-needed increase in trafficcapacity, the Expressway will be designed to relieveexisting overloaded roads. Access and distribution tothe Expressway will be designed to avoid addingcongestiontoexistingfacilities.
2JettiesatMonglaPort Award Stage -ContractSigned
The project aims to develop international standardportfacilitiesforberthingofshipsandcargohandling.
UpgradingofDhakaBypassto 4 Lane (Madanpur-Debogram-Bhulta-Joydebpur)
ProcurementStage-RFP
Theobjectiveoftheprojectistoprovideanalternateroute for road users with high level of travel timereliability and reduced vehicle operating cost inNationalHighwayN105.Theupgradingoftheroadwillalsoenhance theconnectivityof the roadnetwork tomeetforecasteconomicandtrafficgrowthtargets.
Flyover from Santinagar toMawa Road via 4th (New)Bridge over BurigangaRiver
ProjectDevelopmentStage -Feasibility
Theprojectintendsto:• Divert traffic fromMawa road to Dhaka city.
People who will be traveling from southernpart of the country using Padma Bridge now
15Furtherinformationisavailableat:http://www.dmtc.org.bd/about/about-mrt-line-6
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Study can easily enter the city center withoutcongestion.
• Reducetraveltimecost• Facilitate north south traffic movement of
Dhakacity.Peopletraveling inoldpartofcitywillbebenefitedfromthisproject.
• Facilitate the traffic movement for theinhabitantsofJhilmilProjectofRAJUK.
Hemayetpur-Singair-ManikganjPPPRoad
ProjectDevelopmentStage -FeasibilityStudy
The project aims to upgrade the existing 2-laneHamayetpur–Singair– ManikganjRoad into a 4-lanehighway to reduce travel time, alleviate congestion,meet the demand of existing traffic and reduce theroadaccident.
Construction of Laldia BulkTerminal
ProcurementStage-RFQ
Theproject’sobjectivesareto:• Set up a dedicated terminal with specialist
equipmenttohandlebulkcargo.• Enhance capacity at Chittagong Port to deal
with additional cargo volumes and meetfuturedemand.
• Enhance operational performance atChittagong Port and reducing ship waitingtime.
Construction & Operationof Inland ContainerTerminal(ICT)atKhanpur
ProjectDevelopmentStage -FeasibilityStudy
It is expected that redevelopment of Khanpur ICTthroughPPPwillreducecongestionandtransportationcost. The cost savings aspect of IWT in comparisonwithothermodeswouldcreateremarkablemarginasitislessthanhalfthecostoftransportingthroughrailandlessthanone-fourththanthatofroad.Inadditiontothisitissaferthanroadtransportation.
Construction of a NewInland Container Depot(ICD) near DhirasramRailwayStation
ProjectDevelopmentStage -FeasibilityStudy
The proposed ICD near Dhirasram Railway station isplanned to cater the rapid growth of containerizedtraffic handled in the Chittagong Port. Moreover,industries like Ready Made Garments in particularwhichareshiftingtoareasNorthofDhaka,thewovenmillssituatedinMirpur,Tejgaon,Demraandfactorieson Dhaka-Sylhet Highway, Dhaka EPZ, Savar,Tongi,Gazipuretc.areaccessibletotheproposedICDSiteatDhirasram.It isalsoideallysuitedforcontainerizationofIndo-Banglatradeinthenearfuture.
Improvement of Hatirjheel(Rampura Bridge)-Shekherjaiga-Amulia-DemraRoad
ProjectDevelopmentStage -FeasibilityStudy
The objective of improving Chittagong Road-Demra-Amulia-Shekherjaiga-Hatirjheel (Rampura Bridge) into4-laneAccessControlledRoadistocreateanalternateandcongestionfreenewgatewayoftheDhakaCity,toprovide better connectivity of Dhaka withNarayangonj,Chittagong,SylhetandothereasternandsoutheasterndistrictsofBangladeshand toenhancethequalityoflifeoftheroadusersusingthecorridor.
Dhaka-Chittagong AccessControlledHighway
ProjectDevelopmentStage -Feasibility
The project aims to enhance and ensure safer andmore reliable road communications between DhakaandChittagong.
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Study3rdSeaPort Project
DevelopmentStage -AdvisorAppointment
n/a
2nd Padma MultipurposeBridgeatPaturia-Goalundo
CCEAApproved
n/a
BuildandConstructKhulnaKhan Jahan Ali airport andSpecial TourismZone (STZ)inKhulnaunderPPPMode
CCEAApproved
n/a
Barriers:
• LackofreliableGHGdatainthetransportwithanydegreeofcertainty;• Lackofunderstandingofco-benefitsoftransportsectormitigationmeasures;• Lack of awareness regarding the business models for BOT/PPP arrangements in the
operationofmanagementofe-ticketingandstationmanagementrelatedservices;• Lackofaccesstolowcostfinance;and,• Lack of access to land: 60% of Bangladesh land is under agricultural use and 43%of the
country’s land is privately owned. In addition, population pressure on urban areas isgrowingveryfastandincreasinglandpriceinurbancentres(BarkatA.,2004);
• Prolongedandcontentiouspublicprocurementprocesses(USDepartmentofState,2016);• Weakdomesticandregionalconnectivity,contributingtovastregionalinequalityinaccess
tomarketsandservices;• Highlogisticalcostsandweakeningcompetitiveness;• Limitedoperationsandmaintenanceoftransportservices(ADB,2015).
Recommendation:Apre-assessmentofmegatransportprojetsandthepotentialopportunitiesforPPP/BOT arrangements is recommended. Necessary government budgetary support to provideViabilityGapFunding(VGF)tothePPPprojects.Longtenuresoftfinancingformega-scaletransportsectorprojectswillalsoneedtobesecured.
Furtherresearch&consultation:ConsultationwiththeRoadTransportandHighwayDivision(RTHD)andDhakaMassTransitCompanyLtd.(DMTC),theimplementingagencyofMRTLine-6project,toconfirmopportunitiesforcollaborationforsupportingprivatesectorengagementinmegaprojectsincludingtheMRTLine-6project.
5.5. Prioritysub-sector4:Electricvehicles
During the stakeholder consultations, it was mentioned that rural transportation was a keydevelopmentpriorityforthegovernment(includingundertheSustainableDevelopmentGoals).
RRELwasconsultedaspartofthisstudy.
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Based on this consultation and desktop research, a type of investment was identified for thissubsector:Electricthreewheelerswithsolarchargingfacilitiesinruralandperi-urbanareas.
Forthisinvestment,keyopportunitiesandbarriersarepresentedinthefollowingsub-sections.
Scaleanddevelopmentstage:
As for subsector 4, themarket for the low-carbon transport sector is nascent in Bangladesh butpresentsasignificantpotentialforfuturegrowthifexistingbarrierstodevelopmentanduptakeareovercome.
Opportunities:
In Bangladesh, there are about six or seven lacs battery operated three wheelers that are inoperation. These vehicles are connected to the national grid. Charging requires approximately sixhours.RRELisdevelopingamoreefficientsystemwhichwillallowcharginginonlyoneminutefromsolarpower.
Barriers:
Asforsubsector4,manyofthesamebarriersapply,withafocusinparticularon:
• LackofreliableGHGdatainthetransportwithanydegreeofcertainty;• Lackofunderstandingofco-benefitsoftransportsectormitigationmeasures;and,• Lackofaccesstolowcostfinance.
Recommendation:Amarketstudyforintroducingelectricthreewheelers
Furtherresearch&consultation:ConsultationwithRRELtoconfirmopportunitiesforcollaborationregarding the introduction of electric three wheelers.
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6. Conclusion
TheMPIprojecthasthepotentialtoplayanimportantcatalyticroleintheobjectiveofengagingtheprivatesector in implementingBangladesh’sNDCbyproviding thecritical technicalassistanceandproject finance/development/management skills that will be important in ensuring funds areeffectivelyutilised.
Based on the preliminary assessment of opportunities and barriers (see previous section), thissectionprovidesanoverviewof the threepriority sub-sectorswith the strongestpotential for theMPIproject.Foreachoftheseprioritysub-sectors,thefollowingrecommendationsareprovided:
• Recommendation 1: Promote the use of preferential duty waivers of imported capitalmachineries as well as EE equipment is critical for the update of EE measures, alongsidepreferentialtaxationpolicyforEEventuressuchasESCOs.
• Recommendation2:Supportaccesstolowcostfinancetocoverupfrontinvestment,addressinglackof financialpackagesbycommercialbankstailoredtoEEprojects,and implementingpilotprojectsfordemonstratingthebusinesscasesoftheuptakeofspecificEEmeasures.
• Recommendation3:Developandrolloutanawareness-raisingcampaignonEEsavings/benefitsinthecementindustry.Trainingofenergyauditconsultantswillalsoberequired.
• Recommendation4:Developandrolloutanawareness-raisingcampaignonEEsavings/benefitsinthetextile/garmentindustries.Trainingofenergyauditconsultantswillalsoberequired.
• Recommendation5:Developacasestudytoidentifylessonslearntandchallengesindevelopingbiogasprojects(inparticularinthepoultryanddairysectors)withaviewtosupportscalingupandreplicationinruralareas.
• Recommendation6:Conductadetailedmappingofthepotentialforbiomass(whereandhowmuch).
• Recommendation7:Supportaccesstolowcostfinance,addressinglackoffinancialpackagesbycommercial banks tailored to specific RE technologies (focusing on biogas, biomass and solar)andimplementingpilotprojectsfordemonstratingthebusinesscasesforpromotingtheuptakeof specificRE technologies, for instancebysubmittingaconceptunder theGCF’sMicro,SmallandMediumEnterprise(MSME)pilotprogramme(seeBox1).
• Recommendation8:PromotetheuseofpreferentialdutywaiversofimportedcapitalRErelatedtechnologies,alongsidepreferentialtaxationpolicyforREventures.
• Recommendation9:Develop/rolloutanawareness-raisingcampaignonREsavingsandbusinesscases.
• Recommendation10:Carryoutamarketstudyaboutthepotentialforintroducingelectricthreewheelerswithsolarcharginginruralandperi-urbanareas.
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TheMPI project team should further engage during the project inception phase with key stakeholders active in these subsectors to identify possiblecollaborationopportunities,ensuresynergiesandavoidduplicationofwork.SeeTable17below.
Table17:Keystakeholderstoengageperrecommendation
Stakeholders/Recommendations
BB BIFFL BRACB EPRE GCPF GS IDCOL IFC MoEF MoPEMR MTBL PD PPPAuthority
RTHD RREL Solaric SREDA
1 � � � �
2 � � � �
3 � �
4 � � � �
5 � � � � � � �
6 � � � � � � �
7 � � � � � � � � �
8 � � � � � � � � �
9 � � � � � � � �
10 � � �
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8. Annexes
Annex 1. Long l ist of sub-sectors
Number Sector Subsector Investmenttypes1 Agriculture
Improvedcropproduction Weather-basedindexinsuranceforcropIntroductionofdripirrigationSolarirrigationsystems/pumpsProductionofresilientqualityseedsDemonstrationoftheseedsperformanceDemonstrationofthefertilizationcomponentMarketingofthenewseedvaritiesLesstillagecroppingtolimitsoilemission
2 Forestry Reforestationandafforestation
SocialForestryRoad-sideplantationMangroveplantationatthenewlyraisedIslands
3 Industry Energyefficiency Wasteheatrecovery(chemicalfertilizer)EnergyauditatfactorieswithannualreportingoflargeconsumersandimplementationofrecommendationsVaporabsorptionchillers(usedinavarietyofindustriesaswellascommercialbuildingsforprocess-coolingandair-conditioning)EfficientBrick-kilns,MainlyHoffmanandtunnelkilnFurnaceefficiencyimprovement,mainlyinthere-rollingmills(steel)ProcesschangeinthecementfactoriesfromwettodryEfficientAirJetLoomsinthetextilesCo/tri-generation(textileandgarment)Diesel/PVhybridPowerGenerationsystemsatthefactoryroof-top
4 Power Efficiencyimprovementofpowerplants Re-poweringofold-inefficientsteamturbineswithcombinedcyclepowerplantsConventionalenergy Gazexploration
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CleancoaltechnologiesRE Solarhomesystems
Solarmini-gridSolarirrigationsystems/pumpsSolarmicro-nanogridSolarroof-topsolutionSolarPico-pV/lanternGridconnectedpowerplantsUtility-scalesolarWind:gridconnected/stand-alonewindturbinesBio-mass:Bagasse/ricehuskfiredpowergenerationBiomass:bio-gasplantsatruralhouseholdsBiomass:poultryanddairies
5 Transport Modalshiftfromroadtorailandwatertransportforcargohandling/Reducedcongestionandimprovedrunningoftraffic
Metro-rail
BusrapidtransitElectriccars Electricvehicleforruraltransportation
6 Waste Wastetoenergy Smallscalepowerplant
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Annex 2. L ist of stakeholders consulted
# Stakeholder Contactname1 AdvancedChemicalIndustries(ACI) Mr.ShamimMurad2 BangladeshAgriculturalResearchCouncil(BARC) Dr.GhulamHossain3 BangladeshUniversityofEngineeringandTechnology(BUET) Prof.IjazHossain
4 BangladeshInstituteofDevelopmentStudies(BIDS)
M.Asaduzzaman
5 BangladeshInfrastructureFinanceFundLimited(BIFFL) Mr.S.M.FormanulIslam
6 DhakaChamberofCommerceandIndustry(DCCI) Mr.AHMRezaulKabir7 DepartmentofEnvironment(DoE) Md.ZiaulHaque,Mirza
ShowkatHarun-or-Rashid
8 EnergyPack-RE Md.NurulAktar9 GrameenSkhakti Mr.SohelAhmed
Md.MahmodulHasan10 GreenDeltaInsuranceCompany(GDIC) Ms.FarzanaChowdhury11 InfrastructureDevelopmentCompanyLimited(IDCOL) Mr.NazmulHaque12 LalTeer Mr.AbdurRashid
Mr.FaisalRahman13 MinistryofIndustries(MoI) Ms.YasminSultana14 MinistryofEnvironmentandForests(MoEF) NurulKarim
NurulKarim,Dr.AzizulHaque
15 PowerDivision Mr.Alauddin16 RahimafroozRELimited(RREL) Mr.
MunawarMisbahMoin17
RoadTransportandHighwayDivision(RTHD)Ms.ZahidaKhanamMr.ApurbaKimarMohammadBelayetHossain
18 SustainableAndREDevelopmentAuthority(SREDA) SiddiqueZobair19 SMEFoundation Mr.Mohammed
MamunurRahmanMr.TanvirFaisal
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Annex 3. Interview guide
Interviewguide:CountryscopingstudytosupporttheMobilisingPrivateInvestmentforNDCimplementation(MPI)projectinBangladesh
A) Backgroundinformationabouttherespondentandhis/herorganisation(5min):
1. In 2-3 sentences, could you please describe what your organisation does and what yourspecificroleis?
2. Onascaleof1to5(with1beingverylowand5beingveryhigh),howwouldyoudefineyourknowledgeofBangladesh’sNationallyDeterminedContribution(NDC)?
3. On a scale of 1 to 5 (with 1 being very low and 5 being very high), howwould you rateyour/the private sector’s awareness of the opportunities and benefits of engaging inclimate-changerelatedactivities?ThisincludesactivitiesthatcontributetothereductionofGHG emissions (such as RE or energy efficiencymeasures), as well as activities that helpadapt/build resilience to the effects of a changing climate (such as drought or saltwaterresistantcrops,waterconservationmethods)
B) Typesandscaleofprivatesectorinvestmentopportunitiesinyoursector(15mins):4. Whichofthefollowinginvestmentopportunitiesarerelevanttoyoursector/your
business?[onlyrefertorelevantsector/subsector(s)inthetablebelow]Sector/subsector Typesofinvestment Tickthebox
forrelevantinvestments
Agriculture/improvedcropproduction
Weather-basedindexinsuranceforcrop pIntroductionofdripirrigation pDevelopmentofhighyieldingvarieties pLesstillagecroppingtolimitsoilemission p
Industry/energyefficiency
Wasteheatrecovery(chemicalfertilizer) pEnergyauditatfactorieswithannualreportingoflargeconsumersandimplementationofrecommendations
p
Vaporabsorptionchillers(usedinavarietyofindustriesaswellascommercialbuildingsforprocess-coolingandair-conditioning)
p
EfficientBrick-kilns,MainlyHoffmanandtunnelkiln pFurnaceefficiencyimprovement,mainlyinthere-rollingmills(steel) pProcesschangeinthecementfactoriesfromwettodry pEfficientAirJetLoomsinthetextiles pCo/tri-generation(textileandgarment) pDiesel/PVhybridPowerGenerationsystemsatthefactoryroof-topp/.l/.
p
Power/RE
SolarHomeSystems pSolarMini-grid pSolarirrigationsystems/pumps pSolarMicro-nanogrid pSolarRoof-topsolution pSolarPico-pV/lantern pGridconnectedpowerplants p
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Wind:gridconnected/stand-alonewindturbines pBio-mass:Bagasse/ricehuskfiredpowergeneration pBiomass:bio-gasplantsatruralhouseholds pBiomass:poultryanddairies p
Transport Metro-rail pBusrapidtransit p
5. Arethereanyotherinvestmentopportunitiesfor[yoursector/business]thatwehavenotmentionedabove?
6. Foreachoftheinvestmentsmentionedabove,couldyoupleaseindicate:6.1. Theinvestingtrend:
! Introductorystage(productlaunchandmarketentrywithlowsales)! Growthstage(stronggrowthinsalesandprofits)! Maturitystage(productisestablishedandtheaimistomaintainthemarketshare)! Declinestage(marketstartstoshrinkandsalesdecrease)
6.2. Thepotentialmarketsize:
! Micro:US$0to1million! Small:US$1to5million! Medium:US$5to10million! Large:MorethanUS$10million
6.3. Thetimeframefortappingintothepotentialmarket:
! Shortterm(lessthan1year)! Mediumterm(over1to5years)! Longterm(over5years)
6.4. Whatwouldbethemainopportunitiesresultingfromtheinvestmentsyouhave
mentionedabove?! Developmentofnewproductsandservicesinalignmentwiththecountry’slowcarbon
andclimateresilientobjectives/priorities! Neworexpandedmarketsforproductsandservices! Costsavings/efficiency! Securingsustainableorgreensupplychains! Reputationandbrandvalue! Other(Pleasespecify_______________________________________________)
C)Barriersandconstraintstomarketgrowthinyoursector(5mins):
7. For eachof the investmentsmentioned above,what are thebarriers and constraints totakingadvantageoftheseopportunities?
! Policyandregulatoryandenablingenvironmentconstraints! Informationgapsleadingtomarketfailure! Substantialphysicalrisksthatimperilsupplychains,assetsandoperations
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! Weakorshallowfinancialmarkets! Lackofaccesstolowcostfinanceorpreferential/concessionaryfinancing! Capacityconstraints! Marketsize! Transactioncosts! Technologyrisks! Other(Pleasespecify_______________________________________________)
8. Couldyoutellusmoreaboutbarriersandconstraintsyouhavementionedabove?Please
specify
D) Enablingactionstoovercomebarrierstomarketgrowth(15mins):
9. Doyoualreadyreceivesupporttoaddressthebarriersidentifiedabove?
! Yes! No! Unsure
10. [Ifyestoquestion9/above],whatsortofsupporthasbeenreceivedtoaddressthebarriersidentifiedaboveinyoursector?
Tickboxbelowifrelevant
10.1. Institutionalsupport: Tellusmore:Whattypeofsupporthaveyoureceived?Fromwhom?
p Capacity building to enhance riskawareness/managementawareness
Tickboxbelowifrelevant
10.2. Technicalsupport: Tellusmore:Whattypeofsupporthaveyoureceived?Fromwhom?
p Supportforresearchanddevelopment(R&D)
p Knowledgesharing
p Markettestingorpilotproject
p Provisionofaccesstodataandtechnicalsupport
Tick box belowifrelevant
10.3.Financialsupport: Tellusmore:Whattypeofsupporthaveyoureceived?Fromwhom?
p Access to affordable capital for inputs, tools, andimplementation (public sector-funded low-costfinance): grants, debt, equity instruments, pricesupportinstruments?
p Accesstoaffordablefinancialrisk-sharingproducts:partial risk guarantees, partial credit guarantees,loan guarantees, policy guarantees, insuranceproducts?
Tick box below 10.4. Enablingenvironment Tell us more: What type of support
76
ifrelevant haveyoureceived?Fromwhom?p More flexible policy, regulatory and legal
environment
p Mitigationoflocalgovernanceandsecurityrisks
p Fostering public/private partnerships associatedwith concession agreement between thegovernmentandaprivatecompany
11. Hasthissupportsufficienttoaddressthebarriersyouhaveidentifiedabove?Pleasespecifywhyandifrelevantwhatadditionalsupportmayberequiredtosupportmarketgrowth?
12. If the respondent has answered no to question 7,askwhatwould help to overcome these
barriers?(Pleaserefertothelistofpossibleactionsunderquestion8)[Questions#13-17forpublicsector;forprivatesectoractorsskiptoquestion#17]
13. Whatisinyouropiniontheroleoftheprivatesectorinvestmentsinthissector?
14. Whatarethepotentialchallenges/barrierstoprivatesectorinvestmentinthissector?
15. Towhatextenthaveyouengagedwiththeprivatesectorinthissector?Areyouincentivizedtodoso?
16. Whatsupportcouldthepublicsectorprovidetounlocktheseprivatesectorinvestments?! Awareness-raisingandcapacity-building! Accesstoaffordablecapitalforinputs,tools,andimplementation(publicsector-fundedlow-
costfinance):grants,debt,equityinstruments,pricesupportinstruments! Accesstoaffordablefinancialrisk-sharingproducts:partialriskguarantees,partialcredit
guarantees,loanguarantees,policyguarantees,insuranceproducts! Policy,legalandregulatoryreform! Other(Pleasespecify_______________________________________________)
E) Existingbusinessassociationsengagedinclimate-relatedactivities(10mins):
17. Doyouknowexistingbusinessassociationsengaginginclimate-relatedactivitiesinyour
sector?Pleasespecify
18. Couldyoupleasetellusmoreaboutthesortofsupportandengagementtheyprovidetoprivatesectoronclimate-relatedactivitiesinyoursector?
Thankyouverymuchforyourtime.Shouldyourequestit,wewillkeepyouupdatedregardingtheidentifiedclimateinvestmentopportunitiesinBangladeshalongwiththeoptionsthatcouldsupportyourbusinessinthisarea.
77
F) Stayingintouch(5mins):
19. WouldyouliketoremaininformedabouttheMPIproject’supcomingdevelopments?! Yes! No! Unsure
20. [Ifyestoquestion19/above],pleaseprovideuswithyourcontactdetails:Email:________________________________________________
Telephone:____________________________________________
78
Annex 4. Stakeholder mapping
Type Name Relevantmandate Relevantsubsectors
Government institutionsandregulatoryagencies
Ministry ofAgriculture (MoA) –Seedwing16
The administrative authority of the SeedCertificationAgency (SCA). It dealswith the personnel management and fund release for the developmentprojectsofSCA.Itdealswithseeddealerregistrationincludingenquiryaboutcomplaintoanddisciplinarymatters.Itisalsoresponsiblefordevelopingandamending seed acts, rules and regulations and monitors theirimplementation. It organises seminars and workshops for disseminatinginformation on seed technologies and training courses for capacitydevelopmentof the seedprofessionals.Thiswingplaysan important role inmonitoringseedproduction,import,distributionandutilisation.
Agriculture/improvedcropproduction
Ministry ofAgriculture (MoA) –Planningwing
Responsible for identifying the appropriate investment areas in theagricultural sector and planning, monitoring and evaluating agriculturaldevelopmentprojectsimplementedbydifferentagenciesundertheMoA.ThiswingalsomakescommentsontheprojectsofNGOs,otherrelevantministriesand departments for protecting the interest of the agricultural sector inBangladesh.
Plays a vital role in monitoring physical and financial progress of thedevelopment projects and in reporting to the different Ministries andDivisions of the government like, the Ministry of Finance, PlanningCommission, External Resources Division, IMED, PM Office, ParliamentaryCommittee,etc.Itisalsoresponsibleforreportingonwomendevelopmentinagriculturalsector.
Agriculture/improvedcropproduction
16Furtherinformationisavailableat:http://www.moa.gov.bd/site/page/b4afc7c3-ebee-431a-914e-be193f9eecf1/About-MoA
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Type Name Relevantmandate Relevantsubsectors
Ministry ofEnvironment andForests(MoEF)
MoEF isthefocalpointfortheUNFCCCandwill leadonthedevelopmentofthe NAP and the implementation of the NDC, in collaboration with therelevantsectoralministriesandthePlanningCommission.
Allsubsectors
MoEF-DepartmentofEnvironment(DoE)17
DoE ensures the effective implementation of environmental regulations,promotes awareness raising on environmental issues and undertakessustainable actions to tackle environmental problems while ensuring publicsupportandinvolvement.
Allsubsectors
Ministry of Industries(MoI)
TheMinistry of Industries aims to promote growth and development alongwithanenvironmental-friendlyand safe industrialisation. Itexplicitly targetssmall and medium enterprises’ (SMEs) development in the country, whoseactivitiesareexposedtoclimateimpactsorproduceGHGemissions.The2010national industrial policy18 underscores Bangladesh’s exposure to climatechange and promotes the investment in climate-friendly projects, with anemphasisonpublic-privatesector-partnerships.
Allsubsectors
Ministry of Finance(MoF) - Economicrelations division(ERD)
ERDisthecountry’sNationalDesignatedAuthority(NDA)tothe.AstheNDAscreensfundingproposalsandaccreditationapplications,itplaysasubstantialroleinchannellingclimatefinancetowardstheprivatesector.
Allsubsectors
MoF - FinanceDivision(FD)
The Finance division encompasses a Public-Private Partnership UnitresponsiblefortheViabilityGapFinancing(VGF)allocation.Ittargetsprojectswhere financial viability is not ensuredbutwith a high economic and social
Allsubsectors
17(2015)FactsaboutDoEhttp://www.doe.gov.bd/site/page/03f09d82-fb8f-4952-b9cc-c46064635e3b/Brief-of-DoE18(2010)PolicyandStrategyforPublic-PrivatePartnership(PPP)http://www.pppo.gov.bd/download/ppp_office/Policy-Strategy-for-PPP-Aug2010.pdf
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Type Name Relevantmandate Relevantsubsectors
potential
Ministry of Power,Energy and MineralResources(MoPEMR)
Responsibleforpowergeneration,transmissionanddistribution.
Power/EnergyefficiencyRE
Ministry of Power,Energy and MineralResources (MoPEMR)–PowerDivision(PD)
Division responsible for allmatters related to thepower sector (generation,transmission,distribution).ItalsopromotesREandEEthroughformulationofpolicy/regulations, incentive mechanisms and research and development(R&D).
Power/EnergyefficiencyRE
Ministry of Power,Energy and MineralResources (MoPEMR)– Power Division -PowerCell(PC)
Think-tank involved in providing expert services to the ministry regardingpower sector development from both conventional and non-conventionalsourcesofenergy.
Power/EnergyefficiencyRE
Ministry of Power,Energy and MineralResources (MoPEMR)– Power Division -Sustainable & REDevelopmentAuthority(SREDA)
CoordinatesandfacilitatesthedevelopmentofREandenergyefficiency:• toincreasetheshareofREintheenergymixforreducingdependency
onfossilfuel,• totakeappropriatemeasuresforenergysavingandtoassess
continuouslyfornewpotentialsustainableenergysolutions19
Power/EnergyefficiencyRE
Ministry of Planning -Planning Commission(PCom)
The central planning organisation of the country. It determines objectives,goalsandstrategiesofmediumandshort-termplanswithintheframeworkoflong-termperspectiveandformulatespolicymeasuresfortheachievementofplannedgoalsandtargets.
Allsubsectors
19Furtherinformationavailableat:http://www.sreda.gov.bd/index.php/site/page/f3f1-eb2f-ae16-d014-fc7c-af01-8d1b-f8cb-8e33-2915
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Type Name Relevantmandate Relevantsubsectors
Itsactivitiesincludesthefollowingelements:20PolicyPlanningSectoralPlanningProgrammePlanningProjectPlanningEvaluation
Public-PrivatePartnership (PPP)Authority
Anautonomousoffice that sitsunder thePrimeMinister’sOffice to supportthe implementation of the 2010 PPP policy. It supports line ministries toidentify, develop, tender and finance PPP projects (PrimeMinister’s Office.2010).
Allsubsectors
RoadandHighwayDepartment(RHD)
ResponsiblefortheconstructionandthemaintenanceofthemajorroadandbridgenetworkofBangladesh21.
Transport
RoadandHighwayDivision(RHD)
Thehighestpolicymakingbodyof the road transport sector.ThisDivision isheadedbyafullMinister.TheMinistryhastakenmanymegaprojectsaroundthe country for the development of this sector, e.g. Elevated ExpressHighwaysproject.
Transport
RoadTransportAuthority(RTA)
A regulatory body to control manage and ensure discipline in the roadtransportsectorandroadsafetyrelatedareasinBangladesh22. Transport
20Furtherinformationavailableat:http://www.plancomm.gov.bd/21Furtherinformationavailableat :http://rhd.portal.gov.bd/site/page/b34dca5c-5352-4fd2-9533-715058f45951/Overview-of-RHD22Furtherinformationavailableat:http://www.brta.gov.bd/newsite/en/brta-at-a-glance/
82
Type Name Relevantmandate Relevantsubsectors
Solutionsandtechnologyproviders/manufacturers
AdvancedChemicalIndustries(ACI)
A leading conglomerate in Bangladesh, with operations across four mainbusinessunits:pharmaceuticals, consumerbrandsand commodityproducts,retail and agribusiness. Agribusiness is one of the important area ofinvestmentof thecompany.ACI is significantlycontributing tonational foodsecuritythroughitsthisdivision,whichistheleadingagriculturalintegratorofthe country. ACI Agribusiness is providing complete solution to the farmersneedfromSeeds,Fertilizer,agro-machineries,CropsCare&PublicHealth,andAnimalHealth.Theyalsoprovidedifferentknowledge-basedservicesoncropproductionthroughtheirfieldforces.
Agriculture/improvedcropproduction
LalTeer(LT)
AR&DfocusedseedcompanyinBangladeshwhichcommencedoperationsin1995.Itfocusesontheproductionofhigh-yieldseeds,sustainableagricultureand food security within Bangladesh and internationally. The companydevelopshighyieldingyearroundnutritiousandecologicallysustainablecropvarietiesforsupplytothegrowerstoalleviatethenutritionaldeficiencyofthepopulationofthecountry.LalTeeratpresentismarketing131varietiesof33vegetablecropsinthecountry.
Agriculture/improvedcropproduction
PRANGroup(PRAN)Bangladeshiagribusinessfirmproducingmorethan400foodproductsunder10different categories (juice, drinks, mineral water, bakery, carbonatedbeverages,snacks,culinary,confectionery,biscuitsanddairy).
Agriculture/improvedcropproduction
RahimafroozRELimited(RREL)
ABangladeshiconglomerateoperatingineightmainbusinessventuresandanon-profit social enterprise for rural development. The main businessoperations focusupon: storagepower,auto-motivesandelectronics,energyand retail.Oneof its specificbusinessunits that isof interest for this study.RRELspecialises insolarenergysolutionsandhasbeenakeyorganisation inthe success of IDCOL’s SHS programme. It has also undertaken numerousinnovativeventuresleadingactiononclimatechangeinBangladesh,including
RE
83
Type Name Relevantmandate Relevantsubsectors
a joint venture with Australian Firm Carbon Planet to establish BangladeshCarbonin2009,enhancingengagementofBangladeshiorganisationswiththeCDM, and catering for the rural unbanked through their not-for-profit RuralServicesFoundation.
GrameenShakti(GS)
A subsidiaryof theworld leading social enterpriseGrameenBank, focussingon thedevelopmentofRE systems in ruralBangladesh.GrameenShaktihassignificantclimatechangerelevantexperience, including in the initialphasesof IDCOLs Solar Home Systems (SHSs) programme, as well as biogas, solarirrigationandcleancook-stoveswiththeKyotoProtocol’sCleanDevelopmentMechanism (CDM). Grameen’s extensive network, including agricultural andrural capacity building programmes, provide the ideal opportunity tomaximise paradigm shift and sustainable development benefits in energyaccesstechnologies.
RE
Solaric(SL)
ARE-based SME, founded in 2009. It has beenparticularly influential in theR&DofsolarproductsinBangladeshincludingwithIDCOL,butalsothewiderinternationalmarket,withholdings inMalawiandTanzania. Solaric alsohasgoodexperience in internationalfunding, includingfromtheIFCbasedSmallEnterpriseAssistanceFund(SEAF).
RE
EnergyPack-RE(EPRE)
Establishedin2005,providingcompleteelectronicsolutions.ItholdsoneofthemostmodernandpioneeringelectronicsindustryinBangladesh.Itincludessophisticatedmanufacturingequipmentalongwiththeresearchanddevelopmentfacilities.Theyhavefootprintinthedevelopmentofsolar-basedREprojects.TheypioneeredinefficientLEDproductionlocally.
RE
84
Type Name Relevantmandate Relevantsubsectors
BuildingResourcesAcrossCommunities(BRAC)
Has16socialenterprises.Someoperateinagribusinessandincludetheseedsector.With22productioncentresandabout7,000contract farmersaroundthecountryBRACisthecountry’s largestproducerofhybridmaizeseedandsecond largest producer of potato seed. It has the largestmarket share forrice seed (hybrid and high-yielding varieties), maize seed, potato seed andvegetable seed. The seed and agro enterprise has established five seedprocessingcentreswithaprocessingcapacityof12,000metrictonsperyear,alongwith11modernstoragesystemswiththecapacityof4,400metrictons.To ensure high quality seeds, the enterprise uses automatic polymer seedcoating treatment (fungicide) and an automatic packaging system.Furthermore, it promotes environment-friendly farming by marketingmicronutrients likezincandboroninordertotackletherisingmicronutrientdeficiencyinsoil23.
Agriculture/Improvedcropproduction
PivotEngineering(PE)Engineeringcompany.Theirmainareasofworkare:watertreatmentplants,effluent treatment plant, fabrication items, industrial chemicals, rice millmachinery24.
ProkaushaliAliSangsadLtd(PSL)
Engineeringconsultingfirm.Theirmainareasofworkare:Off-grid/Mini-GridPVdesign&implementation,EnergyAuditing/EnergyEfficiencyandOn-GridPV system design and implementation. The firm has provided technicalassistanceinpowergenerationfromnation'sfirstsolarminigridof100kWintheremoteislandofSandwip,Chittagong25.
RE
23Furtherinformationavailableat:http://www.brac.net/brac-enterprises/item/899-brac-seed-and-agro-enterprise24Furtherinformationavailableat:https://bd105432182.fm.alibaba.com/company_profile.html?spm=a2700.8304367.coowfd0405.1.76f1ac9fRVYnwb25Furtherinformationavailableat:http://www.psldhaka.net/sub_page/archive%20projects/First%20100%20KW%20Solar%20mini%20grid%20of%20Bangladesh/100%20kW%20solar%20mini%20grid%20sandwip.html
85
Type Name Relevantmandate Relevantsubsectors
FilamentEngineeringLtd26(FEL)
FilamentEngineeringLtd.’svision is tobring improvedsolutions forcooking.FEL is committed to improve the rural livesby reducing thehealth risksandhelplowerincomegroupsinthesocietytohelpfightforfinancialsolvencybyreducingthecostsoffuelwhilemitigatingtheenergydemandsforcookingina smart way. FEL believes in lowering the respiratory problems and lungcancerpatientsamongtheunderprivilegedportionofoursocietyandthiswillbe done by aligning FEL’s clean cooking stove research and continuousimprovement.
Power/Energyefficiency
Commercialbanksandotherfinancialinstitutions
BangladeshInfrastructureFinanceFundLimited(BIFFL)
A government-owned financial intermediary andmandated to finance largeinfrastructure projectswhich including power& energy, ports, connectivity,tourismandeconomiczones.ItalsowantstoensureagreenerBangladeshbysupporting the finance in the sustainable energydevelopmentprojectswithan emphasis on RE, EE and eco-friendly projects. BIFFL is working tosupplement government’s vision of achieving middle income status of thecountryby2021.
Allsubsectors
GreenDeltaInsurance(GDI)
Oneoftheleadingprivatenon-lifeinsurancecompaniesinBangladesh.GDICwas incorporated inDecember14,1985asapublic limited company,undertheCompanies’Act1913anditsoperationstartedon1stJanuary1986,withapaidupcapitalofBDT30.00million.
PragatiInsuranceLimited(PIL)27
PIL is a leading private non-life insurance company in Bangladesh. It wasestablishedin1986byagroupofyoungBangladeshientrepreneurswhohadearlierlaunchedaCommercialBankintheprivatesectoralso.TheseSponsorsincluded Shipping Magnates, Engineers, Road Builders and Top GarmentIndustrialists.The company offers a complete range of general insuranceproductsandservicesinmotor,marine,energy,propertyandcasualty,health,
26Furtherinformationavailableat:http://cleancookstoves.org/partners/item/999/209127Furtherinformationavailableat:http://pragatiinsurance.com/
86
Type Name Relevantmandate Relevantsubsectors
accidentandliabilityareas.
BangladeshBank(BB)
The country’s central bank and regulatory body for the country'smonetaryandfinancialsystem.
BRACBank(BRAC-B)
Established in 2001 is an SME focused bank that offers market loans atcompetitiverates.Thegreenbankingdepartment'sgoalistocomplywiththeregulatory guidelines, align with internal green banking activities with thecentralbankandwithinternalpoliciesofthebank.Itoffersproductsrelatedto energy efficiency and RE. Most recently they have developed a productcalled - Planet Solution an Energy Efficiency Financing Loan to assistreadymade garments and textile industries to invest in energy efficiencytechnology.TheseincludeauditandEnergyEfficientequipmentforborrowersattherateof6%.IFCisinvolvedinthisproject.Thisisanunsecuredloan(nocollateral)offeredtomanufacturersandexportersintextile.
CityBank(CB)
OneoftheleadingcommercialbankswithinBangladeshundertheregulationof the Bangladesh Bank and the Bangladesh Securities and ExchangeCommission(BESC).Itcommencedoperationsin1983,andwaslistedontheDhakaStockExchangein1987,followedbytheChittagongStockExchangein1995. In addition to its leading corporate finance role, City Bank also has agrowing SME financing focus. Moreover, it is the only financial institutionbeing institutionally assessed which has already accessed a specificinternational climate fund: The Global Climate Partnerships Fund (GCPF),providing low cost financing for EE and RE financing, from internationaldonors includingKfW,DeutscheBank, the IFC, andUKAid, amongstothers.This is inadditionto itsGreenBankingmandate fromBangladeshBank.CityBankalsohasanestablished structured financingdivisionandexperience inlarge scale conventional power plant financing, blending finance frominternationalanddomesticinstitutions.
87
Type Name Relevantmandate Relevantsubsectors
EasternBank(EB)
Commercial bankthat provides products and services in retail banking,corporate finance, assetmanagement, equity brokerage and security. It has59branchesinBangladeshandemployaround3,000employees.
GreenDeltaCapital(GDC)
GDCL is a subsidiary of the leading non-life insurance companyGreenDeltaInsurance, and is itself one of the leading corporate investment banks inBangladeshundertheregulationofBESC.Itisperhapsbetterconsideredasamerchant bank given its significant expertise in international financing,especially from DFIs. It specialises in the arrangement and underwriting offinancing deals between international financiers and domestic Bangladeshiinstitutions, bridging the gap between international and domestic capitalmarkets.
IndustrialDevelopmentLeasingCompany(IDLC)FinanceLimited
IDLC is a Non-Banking Financial Institution (NBFI) established in 1965 bydomestic and international financing institutions,which include severalDFIssuchas IFCand theGerman InvestmentCorporation (DEG). It isnowoneofthe largest NBFIs in Bangladesh, with a particular focus on SME financing,includinginnovativefemalefocusedfinancingproducts–the“Purnotaloan”.Additionally,IDCLalsoasacorporatefinancingdivisionandexperienceintheBangladeshicapitalmarketsandprojectmanagement.Moreover, IDLChasaparticularly proactive stance on climate change, with an active role in theinternational financing fora with ratification of UNEPs Financial Institutions(FI)“Mobilising100FIsforenergyefficiency”atCOP21.Tobackthisup,ithasaccessed finance fromseveralDFIs forEEprogrammesandengaged inCDMfinancing with IDCOL, in addition to its Green Banking mandate fromBangladeshBank.
InfrastructureDevelopmentCompanyLimited(IDCOL)
IDCOLwas established on 14May 1997 by the Government of Bangladesh.The Companywas licensed by the Bangladesh Bank as a non-bank financialinstitution (NBFI) on 5 January 1998. Since its inception, IDCOL is playing amajorroleinbridgingthefinancinggapfordevelopingmediumtolarge-scaleinfrastructureandREprojectsinBangladesh.Thecompanynowstandsasthe
88
Type Name Relevantmandate Relevantsubsectors
market leader in private sector energy and infrastructure financing inBangladesh28.Act as a fundmanager for concessional funding received from JICA to finance EE measures in the cement and textile industries.
MercantileBankLimited(MBL)
A new commercial bank to provide efficient banking services and tocontribute socio-economic development of the country. Commenced itsoperationonJune2,199929.
MutualTrustBankLimited(MTBL)
FirstcommercialbankinBangladesh,introducedintegratedirrigationfinanceschemebasedonSolartechnology.Alsotheyhavemanyinnovativefinancingschemetosupportsustainabletechnologiesandmanagement.Offersagreenproduct called Green Energy Loan which finances customers to set up REprojectssuchassolar,biogas,wind,hydro,brickkilnfinancingandanyotherpotential renewableplants finances.Thebank lends tomicrofinanceentitieswho lend to small borrowers for home and commercial uses. Throughmicrofinance institutions they have funded 12 solar irrigation projects inNorth Bangladesh. Other examples of projects financed include green agroprojectssuchasbiogas,recyclablecups.
ClimateChangeTrustFund(CCTF)
Thisisanationalclimatefund.CCTFfundsprogrammesandprojectsfromthenationalbudgettohelpcommunitiesrecoverandbecomeresilienttoclimatechangeimpacts.Operationalsince2010,thefundiscurrentlymanagedbytheBangladesh Climate Change Trust and (BCCT) and the government, and hasallocatedTk2,900crduringthelastsixfiscalyearsuntil2014-201530.Itmainlyfocusesonadaptation.
28Furtherinformationavailableat:http://idcol.org/home/about29Furtherinformationavailableathttp://www.mblbd.com/home/about30Furtherinformationavailableat :http://www.icccad.net/introduction-to-the-bangladesh-climate-change-trust-fund-2/
89
Type Name Relevantmandate Relevantsubsectors
SoutheastBank(SB)SB is a commercial bank that has, like City Bank,secured funding from theGlobalClimatePartnershipsFund(GCPF)tofundenergy-efficiencyprojectsinthetextileindustry.
Energyefficiency/textile
Academicinstitutions,consultingfirmsandthinktanks
BangladeshAgriculturalResearchCouncil(BARC)
It has the responsibility to strengthen the national agricultural researchcapability through planning and integration of resources. It is the umbrellaunderwhichtheentireBangladeshagriculturalresearcheffortiscoordinated.This involved cooperative activities in several ministries of government:Agriculture, Forest and Environment, Fisheries and Livestock, RuralDevelopment, Education, Industries, Commerce, Science and Technology,etc31.
Agriculture/improvedcropproduction
BureauofResearch,TestingandConsultation(BTRC)32
Undertakes research, testing and consultation works in the field ofengineering,architectureandplanningasentrustedtothembyprivatepartiesandbygovernmentandautonomousbodies.
Transportation
BangladeshUniversityofEngineeringandTechnology(BUET)
PublicuniversityinBangladesh,whichfocusesonthestudyofengineeringandarchitecture
TransportationPower/energyefficiency
BangladeshInstituteofDevelopmentStudies(BIDS)
BIDS isanautonomouspublicmulti-disciplinaryorganisationwhichconductspolicy oriented research on the development issues facing Bangladesh andother developing countries. The mission is to facilitate learning indevelopment solutions by conducting credible research, fostering policydialogue,disseminatingpolicyoptions,anddevelopingcoalitionstopromoteinformedpolicymaking.
Allsubsectors
31Furtherinformationavailableat:http://www.barc.gov.bd/site/page/2a3319ef-08d2-4818-baf1-663832d9b582/Introduction32https://www.linkedin.com/company-beta/13274622/
90
Type Name Relevantmandate Relevantsubsectors
BRAC/EC3R AconsultingwingofBRACanddedicated in the fieldof climate changeandadaptationrelatedpolicyandadvocacy.
BRACNGO(BRAC-NGO)
Bangladesh-based development organisation addressing poverty issues. It isthelargestNGOintheworld.Itisactivein12countriesusingawidearrayoftools such as microfinance, education, healthcare, legal rights training andmoretocreateopportunitiesforpeoplemostinneed.
Allsubsectors
91
Type Name Relevantmandate Relevantsubsectors
BRACUniversity(BRACU)33
BRAC University (BRACU) was established in 2001. Building on BRAC'sexperience of seeking solutions to challenges posed by extreme poverty,BRACU hopes to instill in its students a commitment to working towardsnational development and progress.BRACU is accredited by the UniversityGrants Commission (UGC) and approved by the Ministry of Education,GovernmentofBangladesh.
Allsubsectors
InternationalCentreforClimateChangeandDevelopment(ICCCAD)
BasedattheIndependentUniversity,Bangladesh.Itsgoalsareto:• TrainfutureandcurrentleadersonClimateChangeandDevelopment• ConductresearchtogeneratepeerreviewedpublicationsonClimate
ChangeandDevelopment,withafocusonClimateChangeAdaptation• Buildcapacity,specificallyforLDCs• Buildandleadanetworkofpartners,mainlyconsistingofSouthern
basedinstitutesItfocusesespeciallyontheadaptationdimension.
Allsubsectors
CentreforPolicyDialogue(CPD)
TheCentreforPolicyDialogue(CPD)wasestablished in1993asanon-profitcivil society initiative with a view to advance the cause of a participatory,inclusiveandaccountabledevelopmentprocessinBangladeshandcontributetoBangladesh’ssocio-economicdevelopmentandstrengthenedregionalandglobaleconomicintegration.
Agriculture/improvedcropproduction
33Furtherinformationisavailablehere:http://www.bracu.ac.bd/about
92
Type Name Relevantmandate Relevantsubsectors
Itfocuseson:
• MacroeconomicPerformanceAnalysis• Poverty,InequalityandSocialProtection• AgricultureandRuralDevelopment• InvestmentPromotion,InfrastructureandEnterpriseDevelopment• Trade,RegionalandSub-regionalCooperationandGlobalIntegration• ClimateChangeandEnvironment• DevelopmentGovernance,PoliciesandInstitutions• Post-2015InternationalDevelopmentAgenda
FutureCarbon(FC) Consultancywhoseworkcentresonenergy,environmentalsustainabilityandtogreendevelopment.
Power/EnergyefficiencyRETransport
NatureConservationManagement(NACOM)
NACOMisaBangladesh-basedenvironmentalNGOwithabroadmandateofactivities in the area of natural resourcesmanagement, climate change andlivelihooddevelopment.NACOMhasextensiveexperience in thedesignandimplementationofvariousnaturalresourcesandenvironmentalmanagementprograms.NACOMcontributedtoaprojectaimedtosupporttheBangladeshigovernment in translating the country’s (I)NDC into concrete plans, tomainstream climate compatible development (CCD) into planning processeswith the aim to ultimately strengthen institutions. NACOM has also beeninvolved in preparing the country’s Third National Communication (TNC),particularlytheGHGinventory.
Allsubsectors
UnitedInternationalUniversity(UIU)
AprivateuniversityapprovedbytheGovernmentofthePeople’sRepublicofBangladeshandUniversityGrantsCommission(UGC).
93
Type Name Relevantmandate Relevantsubsectors
BangladeshCentreforAdvancedStudies(BCAS)
An independent, non-profit, non-government, policy, research andimplementation instituteworking on SustainableDevelopment (SD) at local,national, regional and global levels. It was established in 1986 and over 30years and has grown to become a leading research institute in the non-governmentsectorinBangladeshandSouthAsia.Encouragesmultidisciplinaryandinterdisciplinaryinitsapproachesofrunningprograms and projects by working under four broad themes, Environment-development integration, Good governance and people’s participation,Povertyalleviationandsustainable livelihoods,Economicgrowthandpublic-privatepartnership34.
Agriculture/improvedcropproduction
EnergyInstitute,DhakaUniversity(EIDU)
Theinstitutehasthefollowingmandate35:• To do research and development activities in diverse areas of RE
technology• To reduce dependence on non-renewable sources of energy and
makeBangladeshenergyindependent• To build new research groups for doing research in the field of low
cost, high efficiency Solar Cells, Solar Photovoltaic Power, SolarThermalPowerandotherfieldsofRE
• ToconductacademicprogramslikeMS,MPhil,PhDinRETechnology(RET)
• Todevelopmanpowerthroughshorttermtrainingcourses
Power/energyefficiencyRE
34https://www.bcas.net/35http://www.du.ac.bd/academic/department_item/RET
94
Type Name Relevantmandate Relevantsubsectors
• ToconducttestingofvariouslocallydevelopedorimporteddevicesofRET
• Tomakecollaborationwith localand internationalorganizationsanduniversitiesforeducationandresearchinthefieldofRE
• To support in Demonstration, Dissemination, Awareness ofsustainable energy technologies, Analysis of country’s specificproblemsetc.effectively
• Tosupportenergypoliciesofthecountry• Toeducateandinformthegeneralpeopleincludingstakeholdersthat
include residential, commercial, industrial and governmentalorganizations who are consumers of power and energy, the manybenefitofRE
• To seek funding, investments anddonations for IRE fromconcernedcitizens,organizationsandcompanies thatwill fundthe IRE’sgrants,research and development IRE will find (it possible) research anddevelopmentof all RETs, aswell asprovide consulting advise to theactivitiesofgreenenergy
Businessandindustryassociations
AssociationofBankers,BangladeshLimited(ABBL)
Focuses on the banking industry, development of trade, commerce andindustrialsectorofBangladesh.Itaimstobuildaplatformtoexchangeviewswiththeregulatorybodiesandotherrelatedassociations.
Allsubsectors
BangladeshMerchantBankers(BMB)
Acommonplatformofthemerchantbankersoperatinginthecountry. Allsubsectors
Bangladesh Seed Associat ion (BSA)
Thisbusinessassociationaimstoensuretheavailabilityofqualityseedsforfarmersatanaffordableprice.Theyhavethefollowingmandate:
• Promotesupplyofqualityseedswhenandwhereneededandatreasonablepricesforfarmers
Agriculture/improvedcropproduction
95
Type Name Relevantmandate Relevantsubsectors
• Developtheseedindustryinahealthy,stable,andsustainablygrowingatmosphereinculcatingthecollaborativespiritamongallparties.
• Promoteappropriateregulationbyrepresentinginterestsofallmembersthroughlobbyingwiththegovernmentintheprocessofreviewingtheseedlaws,decrees,rulesoftheBangladeshseedindustry
• Increaseaccessandusageofinformationandnewseedtechnologies,includingmanagement,marketingandcollectivepromotiontoexpandthebaseofhigh-qualityseedavailabletofarmersinthedomesticandforeignmarketsalike.
• PromotedevelopmentandbreedingofnewvarietiesAssociationBangladeshAgro-ProcessorsAssociation(BAPA)
UndertakeS lot of activities including extensive motivational and skilldevelopment action plan, quality improvement and innovation withpreservationtechniques.
Agriculture/improvedcropproduction
BangladeshBrickManufacturingOwners'Association(BBMOA)
Establishedtosupportthebrickfieldsowners,todevelopthebricksector,tointroducenewtechnology,rulesandregulation,implementGovernmentpoliciesandraiseawareness.
Power/Energyefficiency
BrightGreenEnergyFoundation(BGEF)
ONCEoftheleadingorganizationsinthecountrytoprovidepollutionfreeREtotheunderprivilegedruralpeopleofBangladeshthroughinnovativemonthlyinstallment based financing model. BGEF's goal is to improve livingenvironmentofruralpeople,inspirethemforbetterlivelihoodandtocreateawarenessforclimatechangeandmitigationforabrightgreenfutureofruralBangladesh. Bright Green Energy Foundation (BGEF) has become IDCOL's(Infrastructure Development Company Limited) partner organization sinceJune 2011. Since then it has successfully installedover 145,000 SHS in ruraloff-grid Bangladesh through its own network of 307 rural branch offices all
Power/EnergyefficiencyRE
96
Type Name Relevantmandate Relevantsubsectors
overBangladesh.
BangladeshSolarandREAssociation(BSREA)
LargestassociationofbusinesshousesandNGOsworkingforcleanenergyindustry36. RE
DhakaChamberofCommerceandIndustry(DCCI)
Works with SMEs to facilitate business contact for penetration into newmarketsandaisaplatformfacilitatingopinionsharingandrecommendationsinthesphereoftrade,commerceandtheoveralleconomy.DCCIisthelargestandmostactivechamberofthecountry.
Allsubsectors
FederationofBangladeshiChamberofCommerceandIndustry(FBCCI)
Consultativeandadvisorybody Allsubsectors
MetropolitanChamberofCommerceandIndustry(MCCI)
Founded in 1904, the oldest and the pre-eminent trade organization ofBangladesh. Itsmembershiprollencompasses leadingcommercialand largeindustrial organizations of the country, including public sector corporationsand local as well as multinational companies. Presently, almost all majorenterprisesofthemanufacturingandservicesectorareamongitsmembers.Providesawiderangeofprofessionalservicestoitsmembers.37
Allsubsectors
KhulnaChambersofCommerceandIndustries(KCCI)
Established in 1959 and supports the business communities of the Khulnaregion. Khulna is the third largest city in the country, after Dhaka andChittagong.
Allsubsectors
36http://cleancookstoves.org/partners/item/999/234337http://www.mccibd.org/pages/brief-history-of-the-chamber.php
97
Type Name Relevantmandate Relevantsubsectors
SMEFoundation(SMEF)
EstablishedbytheGovernmentofBangladeshundertheMinistryofIndustriesasanapexinstitutionforSMEdevelopmentinthecountry.ItsmajoractivitiesareimplementationofSMEPolicyStrategiesadoptedbytheBangladeshGovernment,policyadvocacyandinterventionforthegrowthofSMEs,facilitatingfinancialsupportsforSMEs,providingskilldevelopmentandcapacitybuildingtraining,facilitatingadaptationwithappropriatetechnologiesandaccesstoICT,providingbusinesssupportservices,etc.
Allsubsectors
Developmentpartnersandinternationalfinanceinstitutions
AsianDevelopmentBank(ADB)
PilotProgramforClimateResilience(PPCR)interventions:
• CoastalTownsInfrastructureImprovementProject• StrengtheningtheResilienceoftheUrbanWaterSupply,Drainage,
andSanitationtoClimateChangeinCoastalTowns• ClimateChangeCapacityBuildingandKnowledgeManagement
Allsubsectors
AdaptationFund(AF) AsBangladeshisaveryvulnerablecountrytoclimatechangeimpacts,fundingfromtheAFcouldcontributetoincreasingitsresilience. Allsubsectors
ClimateandDevelopmentKnowledgeNetwork(CDKN)
CDKNpossessesanin-depthknowledgeoftheBangladeshiprivatesectoranditsinvolvementinclimatechangeadaptationthankstothefollowingprogramme:“Readinessofprivatesectorinvestmentinclimatechange(2015–2016)”.
Allsubsectors
DanishInternationalDevelopmentAgency(DANIDA)
Inclusivegreengrowth(2016-2021):Theprogrammehasathematicfocusonimprovingclimateresilienceandincomegenerationamongthepoorandvulnerabletoclimatechangeaswellaspromotingprivatesectorinvestmentsinsustainableandefficientenergysolutions.
Allsubsectors
DeutscheGesellschaftfürInternationaleZusammenarbeit(GIZ)
ClimateFinanceReadiness.SupportingStrategicEngagementofthePrivateSector’project(2015–2016) Allsubsectors
98
Type Name Relevantmandate Relevantsubsectors
FoodandAgricultureOrganization(FAO)
Inclusivegreengrowth(2016-2021) Agriculture/Improvedcropproduction
GlobalClimatePartnershipFund(GCPF)38
WorkswithCityBankandSoutheastBanktowhichitprovidesfundingtofinanceenergy-efficiencyprojectsinthetextilesector.
Energyefficiency
GreenClimateFund(GCF)
BangladeshistargetingtheGCFforsupportformitigationandadaptationactions.TheEconomicRelationsDivisionintheMinistryofFinancehasbeendesignatedastheNationalDesignatedAuthority(thenationalfocalpointfortheGCFinBangladesh)andtheyhavesubmittedaproposaltotheGCFforbuildingGCFreadiness,forexamplebystrengtheningthecountry’scoordinationmechanismforGCF-relatedactivitiesandidentifyingtransformationalinvestmentopportunitiesinaccordancewithGCF’sInvestmentFrameworkandResultManagementFramework(GCF,2015).Thusfar,BangladeshhasreceivedUSD40millionfromtheGCFforclimateresilientinfrastructuremainstreaminginBangladesh,withafurtherUSD40millionofco-fundingfromtheGermanMinistryforEconomicCooperationandtheBangladeshiMinistryofLocalGovernment(GCF,2015).
Allsubsectors
InternationalFinanceCorporation(IFC) StrategicProgramforClimateResilience(SPCR)(2010-on-going) Allsubsectors
JapanInternationalCooperationAgency(JICA)
CountryassistancepolicyinBangladeshaimstoaccelerateinclusiveeconomicgrowthanderadicatepoverty39.Underthe“Accelerateeconomicgrowth”area,JICArunsa“PrivateSectorDevelopmentProgramme”thatfocusesonSMEsandPPPs’development.ProvidesconcessionalfundingtoSREDAtofinanceEEmeasuresinthecementandtextileindustriesunderthetheEE
Energyefficiency
38Furtherinformationavailableat:http://www.gcpf.lu/energy-efficiency-in-the-textile-industry-bangladesh.html39http://www.bd.emb-japan.go.jp/en/assistance/rollingplan2014.pdf
99
Type Name Relevantmandate Relevantsubsectors
andConservationPromotionFinancingProject.
UKAid Allsubsectors
UnitedNationsDevelopmentProgramme(UNDP)
Countryworkprogramme(2017-2020):Theprogramme’sprioritiesare:• Ensuringeconomicgrowthisinclusiveandsupportseconomicopportunities,particularlyforwomen• Improvingsocialpoliciesandprogrammes,withafocusongoodgovernanceandstructuralinequalities• Buildingresilienceandimprovingenvironmentalsustainability.UNDPintendstomobiliseresourcestosecureprivatesectorpartnershipsopportunities.Partnershipswiththeprivatesectorwillbeexploredthrough“BusinessInitiativeLeadingDevelopment”,theFederationofBangladeshChambersofCommerceandIndustry,andtheBusinessCalltoAction.
Allsubsectors
WorldBank(WB)
Thetwofollowingprogrammescanbeofinteresttosupporttheinvestmentsinthisscopingstudy’sidentifiedsubsectors.
• BangladeshInsuranceSectorDevelopmentProject(2017–2022):itsobjectiveistostrengthentheinstitutionalcapacityoftheregulatorandstateownedinsurancecorporationsandincreasethecoverageofinsuranceinBangladesh
• PowerSystemReliabilityandEfficiencyImprovementProject(2017-2021):itsobjectiveistoimprovethereliabilityandefficiencyofthepowersysteminBangladeshthroughoptimizationofdispatchoperation.
Agriculture/cropinsurancePower/Energyefficiency
100
ThisdocumentisanoutputfromtheMobilisingInvestmentproject,aninitiativeoftheClimateandDevelopmentKnowledgeNetwork(CDKN)andLowEmissionDevelopmentStrategiesGlobalPartnership(LEDSGP)contractedthroughSouthSouthNorth(SSN).TheMobilisingInvestmentprojectisfundedbytheInternationalClimateInitiative(IKI)oftheGermanFederalMinistryfortheEnvironment,NatureConservationandNuclearSafety(BMU),onthebasisofadecisionadoptedbytheGermanBundestag.DeliverypartnersfortheprojectincludetheNationalRenewableEnergyLaboratory(NREL),OverseasDevelopmentInstitute(ODI)andPriceWaterhouseCoopersUK(PwC).Theviewsexpressedarenotnecessarilythoseof,orendorsedby,BMUoranyoftheentitiesdeliveringtheMobilisingInvestmentproject,whocanacceptnoresponsibilityorliabilityforsuchviewsorinformation,orforanyrelianceplacedonthem.Thispublicationhasbeenpreparedforgeneralguidanceonmattersofinterestonly,anddoesnotconstituteprofessionaladvice.Youshouldnotactupontheinformationcontainedinthispublicationwithoutobtainingspecificprofessionaladvice.Norepresentationorwarranty(expressorimplied)isgivenastotheaccuracyorcompletenessoftheinformationcontainedinthispublication,and,totheextentpermittedbylaw,theentitiesmanagingthedeliveryoftheMobilisingInvestmentprojectdonotacceptorassumeanyliability,responsibilityordutyofcareforanyconsequencesofyouoranyoneelseacting,orrefrainingtoact,inrelianceontheinformationcontainedinthispublicationorforanydecisionbasedonit.
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