Experts say that the European Union’s Carbon Border Adjustment Mechanism (CBAM) through supply chain regulations and trade measures would be a game changer in tackling emissions. The EU is set to introduce the CBAM, which in effect will make use of trade policy in an unprecedented manner to tackle carbon emissions, they said. Dr Mohammad Abdur Razzaque, Chairman of Research and Policy Integration for Development (RAPID), told UNB the EU has been maintaining an emission trading system (ETS) to reduce greenhouse gas emissions of high carbon-emitting sectors. Also read: Power Division, USAID sign agreement to cut carbon emissions. Carbon price under the EU-ETS reached a record high at EUR 98 per tonne of CO2 on 18 August 2022. Since then it has somewhat fallen and fluctuates around EUR 70, which will be effective in trade in the EU market after 2026, he said. Dr Razzaque, also an international trade expert, said the embedded carbon content in imports will be priced equivalent to the price of CO2 faced by EU domestic firms under ETS. The transition phase is 2023-2025 -in this period importers will have to report emissions embedded in their goods without paying any charge, he pointed out. Also read: IFC-led PaCT helped factories cut carbon and water footprints: BGMEA The EU and EU parliament is working on such regulation to bring about execution by 2026, which may be shifted to 2027. Once in operation, the importers will have to pay for embedded emissions, buying CBAM certificates, Dr Razzaque said. If a non-EU exporter establishes a carbon market, the corresponding cost will be deducted from total CBAM charges, he said. According to the European Commission, the CBAM will initially apply only to a select number of goods at a high risk of carbon leakage, viz., cement, iron and steel, aluminum, fertilizers, and electricity, and will be operational from January 2023, said Md Jillur Rahman, Assistant Professor, Economics Department, Jagannath University. Read Summit, JERA to collaborate for developing a carbon neutral roadmap He said that both the European Council and Parliament have adopted their positions on the Commission's proposal for a CBAM. “The European Parliament proposes a gradual implementation of the CBAM beginning in 2027, and full implementation beginning in 2032 when the free allowances are completely phased out,” Jillur added, who is doing research on CBAM.  The Parliament proposes to broaden the scope of sectoral coverage to include organic chemicals, plastics, hydrogen, and ammonia. Gradually the coverage should be extended to cover all sectors under the EU ETS, he said. Read MVCs' CSOs demand end to carbon emission instead of 'net-zero' target Jillur said, the European Parliament, Council, and Commission will now engage in a trialogue (three-way dialogue) and discuss the differing viewpoints of the three institutions. The political process may be completed by the end of 2022 to adopt the final CBAM regulation for the Union. Professor Abu Eusuf, department of development studies, Dhaka University, said many countries, including India, Vietnam, and China are taking measures to reduce carbon emissions to address the negative impact of climate change in line with the Paris Agreement. “Bangladesh in its updated Nationally Determined Contribution (NDC) commits to unconditionally reduce greenhouse gas emissions by 6.73 percent (27.56 MtCO2e) from the business-as-usual scenario by 2030,” he said. Read Climate change to ultimately cost $100,000 per ton of carbon Prof Eusuf said that subject to technology and know-how transfer, and finance and investment support from the international community, Bangladesh intends to reduce GHS emissions by an additional 15.12 percent (61.9 MtCO2e). “Bangladesh’s NDC commitments and actions for reducing carbon emissions appear to be much less ambitious compared to other comparable countries. China commits to reducing carbon dioxide emissions per unit of GDP by 60 to 65 percent (from the 2005 level) by 2030, while India intends to do the same from 33 to 35 percent,” he added. The experts said Bangladesh’s major competitors have either already established or are in the process of developing carbon markets locally. Read Environmental degradation is a burning issue, but its impact is not yet measured: Statistics Secretary China launched its carbon market in 2021; Vietnam and India are in the process of establishing their internal carbon market. Vietnam wants to formally launch its carbon market in 2028. The 8th Five Year Plan of Bangladesh aims to introduce green taxation on the consumption of fossil fuels, but it is not clear yet how this will be implemented. However, no progress has been made so far. Therefore, the CBAM can disproportionately affect Bangladesh relative to other competitors. Read Govt committed to protect ozone layer: Environment Minister

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has said the International Finance Corporation (IFC)-led Advisory Partnership for Cleaner Textile (PaCT) has helped participating factories cut carbon and water footprints. PaCT is a holistic programme that supports the entire textile value chain – spinning, weaving, wet processing and garment factories in adopting cleaner production practices and engages with brands, technology suppliers, industrial associations, financial institutions, government to bring about systemic and positive environmental change for the Bangladesh textile sector and contribute to the sector's long-term competitiveness and environmental sustainability. BGMEA President Faruque Hassan thanked the IFC for its continued support for the apparel industry over the past few decades. Read: Bangladesh, Indonesia need to work together as partners: BGMEA chief Nishat Chowdhury, programme manager of PaCT, paid a visit to Faruque in Dhaka Sunday. They had discussions about the progress of the ongoing projects which are being implemented by the BGMEA with the financial support of IFC for the development of the RMG industry. IFC, a member of the World Bank Group, has already funded several studies for the apparel sector to explore its opportunities and ways to realise them. One of the studies aims to identify the potential scope of non-cotton textile and apparel for Bangladesh in the global apparel market and formulate a strategy to develop the country's overall competitiveness and strength in the area.  Another study is being conducted on the readymade garment (RMG) sector's recovery roadmap.

Summit Power International Limited and JERA Asia Pte. Ltd. a subsidiary of JERA Corporation of Japan, will collaborate on developing a carbon neutral roadmap for Summit while supporting Bangladesh’s continued socio-economic development. The two companies signed a Memorandum of Understanding (MoU) in this regard on Monday, said a press release. To accelerate adoption of renewable power generation in Bangladesh and support its Paris Agreement goals, the MOU includes pathways for establishing zero emissions targets for Summit, said the release from the Summit group. It also includes outlining a roadmap to achieve the targets and identifying opportunities to deploy greener fuels such as hydrogen or ammonia in support of decarbonization efforts. Also read: MVCs' CSOs demand end to carbon emission instead of 'net-zero' target The MoU was signed between Nicholas Padgalskas, Chief Financial Officer (CFO) of Summit Power International and Toshiro Kudama, CEO of JERA Asia, in the presence of senior officials of the Government of Japan at the Asian Green Growth Partnership Ministerial (AGGPM) Meeting in Tokyo. On the occasion Ayesha Aziz Khan, CEO and MD of Summit Power International remarked, “As a member of the Climate Vulnerability Forum (CVF), Bangladesh has the ambition to supply 40 percent of its energy needs from renewable sources by 2041. In line with this Summit, along with our partner JERA, are aspiring to implement the best practices and adaptation knowledge to reach our zero emissions targets.” Toshiro Kudama said, “JERA Asia is pleased to have the opportunity to work with Summit on its decarbonization efforts in Bangladesh as it too is striving to reduce its carbon footprints from domestic and overseas operations, with the announced goal of zero CO2 emissions by 2050. We believe we can draw on the experiences of JERA and Japan to support Summit and Bangladesh. The demand for electricity in Bangladesh is expected to continue to increase in line with the country’s economic growth. Also read: Globe bounces back to nearly 2019 carbon pollution levels While supporting this growth and meeting the increased demand of electricity, Bangladesh is at the same time seeking to contribute to the Paris Agreement goals by diversifying fuel sources for power generation, improving generation efficiency, and developing renewable energy, said the press release.

Leaders of civil society organisations (CSOs) from most vulnerable countries (MVCs) Friday called for an end to carbon emission instead of pursuing the "net-zero target by 2050." They also demanded that developed countries ensure adequate finance and appropriate tools that will support effective climate action for MVCs and least developed countries (LDCs). The CSO leaders were speaking at the press conference titled "LDC & MVC Peoples' expectations and COP26" in Glasgow. READ: MVC civil society leaders for actions for 1.5 degree temp goal Representatives of different CSOs, including Md Ziaul Hoque Mukta of Center for Sustainable Rural Livelihood, Md Shamsuddoha of Centre for Participatory Research and Development, Shamim Arfeen of AOSED from Bangladesh; and Soumya Datta from Peoples Forum from India joined the press conference. "The 2021 United Nations Climate Change Conference (COP26) is being held at a transitional stage in the context of past failure of its commitments, but we are hopeful for the future as the developed countries have pledged to keep cutting global warming and supporting MVCs to fight climate change impacts," Aminul Hoque of EquityBD from Bangladesh said while presenting the keynote address on civil society expectations. "Developed countries must change their theory of 'net-zero target. They will have to revise their nationally determined contributions (NDC) to the "zero-carbon emission' target by 2050. Also, the countries will have to ensure adequate climate finance for LDCs and MVCs through Green Climate Fund (GCF) and public sources. And they will need to provide support for the establishment and full operationalisation of the proposed loss and damage mechanism with separate financial allocation," he added. "Net-zero is a phrase that represents magical thinking rooted in our obsession for future technology. Collectively, net-zero climate targets allow developed countries to continue increasing their levels of greenhouse gas emissions instead of cutting them directly," Soumya said. "So, it is a false solution proposal, and all parties must stop the discussion on such vague 'net-zero emission' and start the discussion on 'zero-emission target' through offsetting the use of fossil fuels and ending carbon emissions." "The revised NDCs of developed countries and their full implementation will increase the global temperature above 0.2 degree, which is unacceptable," Shamsuddoha said. "Every year, millions of people are displaced due to the loss of all their livelihood options. Rich countries have the responsibility to address the issue and ensure finance and technology support accordingly," Shamim said. READ: Multinational companies plan to cut suppliers who fail to curb carbon emission "The proposed mechanism of 'Santiago Network for Loss and Damage' should be supported by them to make it fully operationalise with proper financing."

Two geoscientists and a philosopher from the University of Chicago (UChicago) estimated that an "ultimate cost of carbon" to humanity comes out closer to 100,000 dollars per ton, a thousand times higher than the 100 dollars or less routinely calculated for the cost to our generation.