Benefit from climate change battle
The business community should come up with new ideas and proposals to take a share of billions of dollars being spent for addressing global warming, said a leading environmental scientist yesterday.
On top of the current development assistance globally, the international community has already pledged to spend $30 billion in the next three years to 2012, with the amount to be extended to $100 billion by 2021, to fight climate change, Aynun Nishat said.
"The United States is already out to spend billions. So we have a huge opportunity, as Bangladesh is one of the few countries that are feeling the impact of global warming," he told a discussion at the Dhaka Sheraton hotel.
Metropolitan Chamber of Commerce and Industry (MCCI) organised the discussion styled 'Climate Change: Business Opportunities'.
MCCI President Anis Ud Dowla chaired the programme, which was attended by academics, businessmen, bankers, industrialists and civil society members.
Nishat said most of the countries to be affected or have already been affected by the climate change are not prepared to accept the money. "Bangladesh is one of the few countries who are really prepared."
He said Bangladesh has progressed in taking on the climate change issue. "We formed National Adaptation Programme of Action (NAPA) in 2005. We have also formulated Climate Change Strategy and Action Plan," he said.
"Besides, the government has formed a trust with a fund of Tk 1,400 crore. We have received so far 5,000 proposals on climate change issue. We have already started financing."
The private sector can initiate climate-change related programmes that will be financed by the fund, he said.
He said the local trade bodies should advise the government's negotiation team on its strategy that can bring benefit to the country.
Nishat said the business community could think of insurance opportunity. "Natural disasters are frequent. We have to prove that such calamities are linked to climate change."
"In this case, the premium will be paid by the international community and we will get huge financial benefits," said Nishat, also the vice chancellor of BRAC University.
He said: "We have introduced CNG-run transport. We could have billions if we had related it to global warming under Clean Development Mechanism (CDM)."
The local cement factories can get fund if they replace their old technology with new one and emit less gas, he said, adding that the private sector has to develop ideas and propose programmes that fit Bangladesh's needs.
"The barren hills in the Chittagong hilly areas can be afforested by the businessmen. The western countries are financing this type of programme."
He said advanced technology would come sooner or later and Bangladesh has to take that opportunity. "Hundreds of billions of dollars will be spent. It would be huge if Bangladesh can get two billion dollars of those."
The eminent climatologist said Bangladesh has to prepare to face the challenges stemming from global warming although the country's per capita greenhouse gas emission is one of the lowest in the world.
"Our food production will severely be affected due to the rise in temperatures," the former professor of Bangladesh University of Engineering and Technology (Buet) said, adding that wheat and rice production would halve if the temperature go up by 4 degree Celsius.
"Besides, the sea level rise will become a serious threat to the country's coastal areas. The country will need 2-3 billion dollars to prevent these areas from disappearing into the sea," he said.
Nishat said Bangladesh cannot afford sitting back in utilising windmill, solar and nuclear sources to produce thousands of megawatts of electricity.
"We have 20 windmills in Kutubdia, but they produce only one watt of electricity. Besides, our solar panels could only generate a few watts whereas India is planning to generate thousands of megawatts of electricity from windmill, solar and nuclear sources."
"We are still using old technologies. The public-private partnership initiative has tremendous opportunities in this area. Time has come for the private sector to take a lead. They should convince the government's negotiating team to listen to them and take their ideas into consideration."
He said Bangladesh has to spend every dollar it gets from the international community in an accountable and transparent manner.
Anis Ud Dowla said the country could not utilise the Tk 300 crore climate change fund floated as a multi-donor trust fund in 2007. Even after failing to spend any amount from the fund, Tk 700 crore was allocated in 2009-10, which also mostly remained unspent.
"We believe that private sector participation in utilising a portion of the fund would be more efficient and effective," he said.
MCCI Secretary General Farooq Ahmed, Citibank NA Country Representative Mamun Rashid and former chief executive officer of Agrani Bank Ltd Syed Abu Naser Bukhtear were also present at the discussion.
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