PM Comprehensive Plan to Enter Global Carbon Market

Prime Minister Tareque Rahman on Sunday directed the authorities concerned to formulate a comprehensive action plan to reduce carbon emissions and enhance Bangladesh's carbon credit potential, aiming to position the country to benefit from the growing global carbon market.

According to Deputy Press Secretary to the Prime Minister Hasan Shiplu, the directive was issued during a meeting on climate change held at the Prime Minister's Office in the Cabinet Division at the Bangladesh Secretariat. 

During the high-level meeting, the Prime Minister underscored the absolute importance of expanding the use of renewable energy, promoting environmentally friendly technologies across the industrial sector, improving overall energy efficiency, conserving existing forests and undertaking large-scale tree plantation programmes to actively increase national carbon absorption. 

He also explicitly instructed the authorities to prepare realistic strategies to effectively capitalize on Bangladesh's emerging opportunities in the international carbon market.

The Prime Minister heavily stressed the need to ensure total transparency in carbon credit management, establish a highly reliable national database and strengthen ongoing coordination with international organizations to facilitate seamless carbon credit generation and trading. 

To further streamline the country's institutional efforts, he directed the immediate formation of a dedicated committee to enhance coordination among the relevant ministries and agencies working toward securing carbon credits.

Ministers and senior officials attending the session noted that the effective implementation of these emission reduction measures would significantly improve Bangladesh's prospects of earning valuable carbon credits in strict accordance with international standards. 

A carbon credit functions as an internationally recognized financial instrument awarded for reducing or removing one metric ton of carbon dioxide or an equivalent amount of other greenhouse gases, from the atmosphere.

Furthermore, carbon trading operates as a market-based mechanism designed to limit global greenhouse gas emissions. 

Under this system, governments or international bodies set strict emission caps for countries, institutions, or companies. 

Entities that exceed their allotted limits are legally required to purchase carbon credits, while those that successfully reduce emissions or increase carbon absorption through targeted afforestation, renewable energy, improved energy efficiency or clean technologies can earn credits. 

These earned credits may then be traded or sold directly to entities that exceed their emission allowances.