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CARBON FINANCE

Under the new Financial service - CARBON FINANCE, IIDFC will provide the following services:

  1. Project Development (CDM projects)
  2. Carbon Finance and Advisory services
  3. Carbon Credit Transfer

Role of IIDFC in the greening effort in the brick manufacturing industry in Bangladesh

“Improving Kiln Efficiency in the Brick Making Industry in Bangladesh”

The Project:  

IIDFC has signed a letter of intent (LOI) with the World Bank, the trustee of the Community Development Carbon Fund (CDCF), to act as a Nodal Agency (bundling agent) to develop and implement a Small Scale Clean Development Mechanism (CDM) project.

The purpose of the project activity titled as “Improving Kiln Efficiency in the Brick Making Industry in Bangladesh” [Hybrid Hoffman Kiln (HHK) Project] is to construct new low energy consuming kilns to significantly reduce emission of Carbon dioxide gas (CO2) and other local pollutants that are generated by the traditional brick kilns of the country. At present, brick making is a highly energy-intensive and carbon-emitting activity. It is one of the largest sources of greenhouse gas emissions in the country, which is estimated to be in the order of 8.75 million tonnes of CO2 annually. By employing the technology embodied in the environmental friendly Hybrid Hoffman Kiln (HHK) on a wide scale, the project also aims at bringing in sustainable changes in the production technology of the brick industry in Bangladesh.

The project activity will construct 20 new energy efficient kilns, each with a capacity of 50,000 bricks per day. Each brick field will generate 50% less emission than traditional brick fields. These 20 kilns in total will produce 300 million high quality bricks per annum and are expected to reduce emissions of CO2 in Bangladesh by approximately 115,000 ton per annum.

In addition to green house gas emissions reduction, the project helps to meet a number of sustainable development objectives, such as transformation of the footloose brick industry in Bangladesh into an energy efficient brick making industry, creation of permanent round the year employment for the migratory brick workers, reducing agricultural land degradation, preventing illegal hill cutting etc.

IIDFC will enter into an Emission Reduction Purchase Agreement with the World Bank, trustee of the Community Development Carbon Fund and the Govt. of Denmark to transfer the Certified Emission Reduction (CER) generated from the HHK brick fields and will distribute the CER Revenue among the subprojects.

The success of this present project of Emission Reduction in the brick manufacturing industry will
encourage other brick manufacturers to come forward and switch to environmental friendly HHK
technology. The success of this project will not only have a sustainable positive impact on the environment of Bangladesh but also encourage development of other potential CDM projects in Bangladesh in various sectors such as bricks and construction materials production sector, power sector, renewable energy sector etc.

Downloadable documents:

Environmental management framework:
IIDFC has prepared an Environmental Management Framework to mitigate the possible environmental and social impacts during the implementation of the sub projects. IIDFC is welcoming comments to finalize the Environmental Management Framework.

To download the Environmental Management Framework, please right click the link below:

ENVIRONMENTAL MANAGEMENT FRAMEWORK: IMPROVING KILN EFFICIENCY IN THE BRICK MAKING INDUSTRY IN BANGLADESH [English version]

ENVIRONMENTAL MANAGEMENT FRAMEWORK: IMPROVING KILN EFFICIENCY IN THE BRICK MAKING INDUSTRY IN BANGLADESH [Bangla version]

 

 

 
           
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