Bangladesh

Implementation period: 2024-2027 Funding amount: US$2 million Window: Readiness

Bangladesh has made proactive progress in operationalizing Article 6 of the Paris Agreement. The government has designated a national authority and adopted initial rules and modalities to guide participation in international carbon markets. A national Article 6 Readiness Roadmap was completed with support from the World Bank’s Ci-Dev program, marking a key milestone in institutional preparedness, which is also being operationalized with the support of the PMI Bangladesh readiness program. The country also completed its first Internationally Transferred Mitigation Outcomes (ITMO) grade transaction, demonstrating early capability in international market engagement. 

Bangladesh is actively building institutional and technical readiness for participation in international carbon markets, as recognized in its Mujib Climate Prosperity Plan, Updated climate commitments, or NDC (2021), and NDC Action Plan.  

Objectives & Activities:  

The PMI Program in Bangladesh supports the country in preparing for carbon credit trading and exploring domestic carbon pricing instruments through technical assistance on: 

• International carbon markets - Development of policy framework and institutional arrangements: Support the establishment of governance structures and national strategies to facilitate engagement with Article 6 of the Paris Agreement and the voluntary carbon markets
• Measurement, Reporting, and Verification (MRV) and registry systems: Assess technological options, including open-source tools, and support customization and piloting of a core carbon registry to enable credit issuance, tracking, and trading
• National carbon pricing policy development: Provide analytical support and evidence-based recommendations to assist policymakers in evaluating policy options and making informed decisions on the adoption and design of domestic carbon pricing instruments
• Cross cutting: capacity building, communication, and outreach: Implement a national capacity-building plan and communications strategy to support stakeholder awareness, institutional coordination, and knowledge dissemination