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