Green Economy around the World: Advancement & Challenges in Bangladesh

1. Submitted to:
Dr. Mahmuda Akter
Professor
Department of Accounting & Information Systems,
University of Dhaka
Submitted by:
A. B. M. Abdullah
BBA 16th Batch, Section-A, Roll-16010
Department of Accounting & Information Systems,
University of Dhaka
Date: 20/02/2014

2. LETTER OF TRANSMITTAL
Department of Accounting & Information Systems
University of Dhaka
February 20, 2014
Dr. Mahmuda Akter
Professor,
Dept. of Accounting & Information Systems,
University of Dhaka
Subject: Submission of project paper
Dear Madam,
I am delighted to submit my project paper on ‘Green Economy around the World:
Prospects in Bangladesh’. This paper has been prepared according to your authorization.
Different research papers, articles, journals, reports on green economy have been taken as
the fundamental sources of information.
I am thankful to you for permitting me to prepare project paper on this alternative economic
system which has enriched my knowledge in different areas.
Sincerely Yours,
A. B. M. Abdullah
i

3. CHART OF CONTENTS
Contents
Page
number
Acknowledgement
01
Executive Summary
01
Introduction
02
Methodology & Limitation
03
Literature Review
03
CHAPTER 1: Introduction to Green Economy
06 - 15
1.1 Green economy: definition & meaning
06
1.2 Traditional economy versus green economy
07
1.3 Evolution of green economy
07
1.4 Principles of green economy
09
1.5 The green economy: from theory to practice
11
1.6 Green economy and poverty reduction
12
1.7 Criticism of green economy
15
CHAPTER 2: Components of Green Economy
16 - 28
2.1 Green banking
16
2.2 Green investment
17
2.3 Green agriculture
19
2.4 Green transportation
20
2.5 Green employment or green jobs
21
2.6 Green fuel/renewable energy
23
2.7 Waste management
25
2.8 Water management
27
2.9 Land management
27
2.10 Forestry
28
CHAPTER 3: Advancement of Green Economy Around the World
29 - 45
3.1 Sector wise advancement of green economy in different countries
29
3.2 Successful green economic initiatives in different countries
37
ii

4. Contents
Page
number
3.3 Environmental Performance Index 2014 and top performer countries
CHAPTER 4: Green Economy in Bangladesh
43
46 - 58
4.1 Probable benefits that Bangladesh can get from green economy
46
4.2 Important initiatives towards green economy in Bangladesh
47
4.3 Sector-wise advancement of green economy in Bangladesh
48
4.4 Bangladesh in Environmental Performance Index (EPI) 2014
57
CHAPTER 5: Challenges & Recommendations
59 - 69
5.1 Analysis of the prospects of green economy in Bangladesh
59
5.2 Challenges towards green economy in Bangladesh & recommendations
60
Conclusion
70
Bibliography
71
iii

5. Acknowledgement
Firstly, I offer my thanks to the Almighty Allah for giving me patience and capability of
collecting information. I am very grateful to my supervisor Professor Dr. Mahmuda Akter
whose encouragement, guidance and support from the initial level enabled me to complete
this project. During the preparation of this project paper, I have collected information from
different articles, reports, research papers, newspapers, journals and websites. I would like
to extend my gratitude to the authors, researchers, editors, organizations and journalists
who prepared those materials.
Executive Summary
The economic system which focuses on both economic growth and environmental
sustainability is known as green economy. This economy requires environment-friendly
practices in the core economic sectors like banking, investment, agriculture, transportation,
employment creation, energy, waste management, water management, land management,
forestry etc. This economy is believed to have many positive outcomes including increased
productivity, increased income, reduced poverty, social equity, environmental protection,
reduced pollution, improved public health and social well-being.
The United Nations Conference on Environment and Development (UNCED), well-known
as the ‘Earth Summit’ held in June 1992 in Rio de Janeiro, Brazil, was the first formal
international initiatives towards environment-friendly economy or green economy. Many
countries have been working for implementing green economy since 1992 and have
achieved success largely. But none of these countries have been able to implement this
economic system completely.
Bangladesh, one of the worst sufferers of climate change, is also experiencing slow
progress towards green economy. In fact, green economy has good prospects in this
country. But the country faces some social, economic, environmental and legal challenges
in the way of greening its economy. This paper has identified those challenges and
provided recommendations to overcome them.
1

6. Introduction
Background: The whole world is running after economic growth and development. This
blind running towards economic growth has damaged the earth and its environment. At the
same time, human existence has become endangered. As a result, the concept of an
alternative economic system called ‘green economy’ has come into being. This concept of
economy covers a broad area of economic, social and environmental development. Green
economic concept is gaining much popularity all over the world. This concept also has
national level applications in many countries of the world.
In very short time, the green economic initiatives and applications in different countries
have presented many positive economic, environmental and social outcomes. Green
economy is not sole applicable in the economically developed countries. Rather it has much
potential in the developing countries like Bangladesh. In the developing countries, this new
economic system can mitigate economic crisis and environmental degradation. Green
economy, its areas and applications have been discussed on national and international
context.
Objectives: The objectives of this project paper are to:
Explain the concept, components and areas of green economy

Identify the potential benefits associated with this economy

Discuss the global advancement of this economy

Determine the applications and advancement of green economic initiatives in
Bangladesh

Identify the challenges of green economy in Bangladesh

Provide recommendations to overcome the identified challenges
2

7. Methodology & Limitation
For preparing this project paper, all the information has been collected from the secondary
sources. Research papers, articles, journals, websites of the related areas were used.
Information has also been collected from the reports of the international organizations like
UNEP, UNCCD, ILO, World Bank etc. Information from all these sources has been
analyzed with much effort for preparing this paper. The main limitation of this paper is that
it contains no information from the primary data sources. Moreover, the paper has been
prepared with my limited knowledge and within a very limited time.
Literature Review
The negative socio-economic and environmental impacts of traditional fossil-fuel based
brown economy have been observed all over the world. These observations motived people
to think of an alternative economic system which is called green economy or environmentfriendly economy. This thinking has been reflected in many literatures.
The United Nations Environment Programme (UNEP) noted in 2008: “There is growing
recognition that humanity faces a severe environmental emergency. Modern economies
have been built on an unsustainable foundation. Activities ranging from agriculture and
mining to manufacturing, services, and transportation rely on fossil fuels, generate copious
amounts of pollution and waste, and undermine critical ecosystems, eco-services, and life
support.”
It is found in the report of Collaborative Economics, Inc., (2010) that since the economy
shifts away from its dependence on carbon‐based energy toward cleaner alternatives and
improvements in efficiency, new market demand is created for products and services that
conserve resources. This transformation of the economy yields increased environmental
and economic flexibility which translates into improved competitiveness for a company as
well as an economy.
In Green Economy Report 2011, United Nations Environment Programme (UNEP)
mentioned, “A major challenge is reconciling the competing economic development
aspirations of rich and poor countries in a world economy that is facing increasing climate
change, energy insecurity and ecological scarcity. A green economy can meet this
3

8. challenge by offering a development path that reduces carbon dependency, promotes
resource and energy efficiency and lessens environmental degradation. As economic
growth and investments become less dependent on liquidating environmental assets and
sacrificing environmental quality, both rich and poor countries can attain more sustainable
economic development.”
Achim Steiner (2010), Executive Director of United Nations Environment Programme
(UNEP) said, “The Green Economy is emerging, in part driven by the financial and
economic crisis, and in part because of a growing realization that the blunt and limited
markets of the past are unlikely to sustain the current global population of six billion
people, rising to nine billion by 2050. Managing environmental risks such as climate
change and the scarcity of natural resources will increasingly define a company’s business
and political life in the 21st century.”
In an effort to define the term green economy, ECO Canada (2010) tried to establish three
criteria namely technical, economic and development. Technical Perspective - defines the
green economy through the application of quantitative, analytical criteria that measure
exactly what it is about a product, process or service that is ‘green’ and to what extent.
Economic Perspective - relates the characteristics of an activity to categorize its economic
classification system of sectors, industries, and occupations. Economic criteria might assess
whether products or services contribute to decreased greenhouse gas emissions, or include
sustainable resources in manufacturing processes. Lastly, development process - identifies
where in the development cycle a green job is situated. The development process includes
the phases of development of a product or service, from the research phase through to
design, delivery, implementation, ongoing use and maintenance.
In his research paper, Md. Mustafizur Rahman said, “Green Economy is one whose growth
in income and employment is driven by public and private investments that reduce carbon
emissions and pollution, enhance energy and resource efficiency, and prevent the loss of
biodiversity and ecosystem services. These investments need to be catalyzed and supported
by targeted public expenditure, policy reforms and regulation changes.”
Unnayan Onneshan (2012), in their policy said, “The green economy has ambivalent
implications for Bangladesh. Some sectors could run well under green economy framework
4

9. such as forestry, tourism, transportation, water resources management etc. Conversely,
cautious approach is needed in implementing green economy principle in agriculture sector
since production may reduce initially in extensive farming which may create a temporary
food crisis for a land deficit country like Bangladesh. It does not mean that we should
continue environmentally destructive mechanized agriculture forever, rather we should start
green agriculture now, may be in a limited scale that can be replicated as wider scale in
future. Equally, we have to be careful about equity and justice issue. The benefits arisen
from green economy should be distributed following the principle of equity and justice.”
Dr. Md. Mizanur Rahman, a biodiversity specialist, identified eleven green solutions for
resolving economic and environmental crisis in Bangladesh. These eleven green solutions
are1) Green energy
2) Green job
3) Reduce, reuse and rethink
4) Go green
5) Green investment
6) Green waste management
7) Green agriculture
8) Green transportation
9) Pure food security
10) Biodiversity conservation and
11) Ecotourism
In his research paper, Md. Mahadi Hasan (2012) mentioned, “Climate change is a serious
global threat, and it demands an urgent global response. And the emerging concept of green
economy could mitigate the multi-crises scenario in ecological balance, social justice,
environmental vulnerability, and economic pitfalls. Although the concept is highly
embarked by the developed nations, still opportunities exist for third world countries like
Bangladesh.”
5

10. CHAPTER I
Introduction to Green Economy
Economy and environment are closely related in achieving sustainable development. But
we are so eager to achieve economic growth that we pay less attention to the environment.
As a result, the gap between economy and environment is increasing continuously. For
achieving high economic growth, natural resources are being used at random around the
world. This excessive use of natural resources is increasing the emission of green house gas
in the atmosphere. The environment is adversely affected by this green house gas. Thus, the
world is becoming polluted and unsafe for human existence. This is high time we thought
differently. We should think of an alternative economic system called Green Economy for
fostering economic growth and at the same time protecting our environment from
degradation.
1.1 Green economy: definition & meaning
The tern ‘Green Economy’ means environment-friendly economy. Here, the word ‘green’
indicates the environment. This economy maintains close relationship with the
environment. All the economic decisions taken in green economy are favorable to the
environment. The main concept of green economy is to enhance economic growth and
development without degrading the natural environment. This economy pays more
attention to the nature and eco-system.
According to the United Nations Environment Programme (UNEP), a green economy is
one that results in improved human wellbeing and social equity while significantly reducing
environmental risks and ecological scarcities. In a simple way, we can say that green
economy can be thought of as one which is low carbon, resource efficient and socially
inclusive. A green economy puts emphasis on economic growth, creating employments,
reducing carbon emission, protecting pollution and accelerating sustainable development.
At the same time, green economy encourages the minimum utilization of natural resources
and the conservation of ecosystem services.
6

11. 1.2 Traditional economy versus green economy
Traditionally economy is a system of production, distribution and consumption. It deals
with the production, distribution and consumption of goods and services of a particular
country or geographical region. This economy broadly discusses the land, labor, capita,
entrepreneurship, manufacturing, trade, distribution, savings, investment, consumption of
that area. This economy contains a lot of rationally argued propositions. The concepts of
this economy are well grounded in the academy.
Like the traditional economy, the green economy is also based on production, distribution
and consumption of goods and services but it is slightly different from the traditional
economy. Green economy differs from the traditional economy in terms of final outputs
and ways of operations. The traditional economy primarily focuses on achieving economic
growth with or without any consideration to environment. On the other hand, the green
economy focuses on growth, social equity and human wellbeing with a great consideration
to reducing environmental risks and ecological scarcities. This economy broadly discusses
the renewable energy, green investment, green transport, green agriculture, green
employments, improved waste management, improved water and land management,
combating climate changes and forestry.
Green economy is a thoughtful part of economy. It exhibits a deep revere for manure and
environment. It is actually a system of ideas and principles and it do not contain any
rationally argued propositions. The concepts of this economy have much impact on the
development strategies and policies. But they are less well grounded in the academy.
1.3 Evolution of green economy
The United Nations Conference on Environment and Development (UNCED) held in June
1992 in Rio de Janeiro, Brazil. This conference is known as ‘Earth Summit’ which adopted
fundamental principles and a programme of action called ‘Agenda 21’ for promoting
sustainable development. In 1997, the United Nations General Assembly reviewed and
ratified the principles for further implementation. This assembly also decided to convene
the World Summit on Sustainable Development (WSSD) in 2002 in Johannesburg, South
7

12. Africa for full implementation of the earlier principles. Having received support form the
WSSD, the Commission on Sustainable Development (CSD) at its 11th session (held in
New York in 2003) decided to formulate a multi-year programme of work.
In response to the financial and economic crisis, United Nations Environmental Programme
(UNEP) called for a ‘Global Green New Deal’. The main objectives of this deal were to
revive global economy, boost employment, fight against climate change and fight against
environmental degradation. The UNEP invited the 20 most advanced economies to engage
in a ‘Global Green New Deal’ by investing at least 1% of their GDP in promoting green
economic sectors. UNEP recommended these economies to emphasize on improving
energy efficiency, sustainable transport and stimulating energy sources. The importance of
inclusive growth with employment creation, decent work and livelihood in the context of
green economy were discussed throughout in several consultative meetings of UNCSD in
2011.
The promotion of green economy requires high subsidies from the government and
technological aids from the developed countries. Seven G20 countries (China, France,
Germany, the USA, Mexico, Republic of Korea and South Africa) have announced
packages for stimulating green economy in 2009. They planned to spend 10% to 20% of the
packages in different sectors like railway infrastructure, sustainable transport, climate
protection, energy efficient building, renewable energies and waste management. UNEP
encourages these countries to increase the level of green investments in the packages. In
response, China and South Korea increased their green investment from 34% to 78%.
Thus, green economy is expanding in many developed countries but the developing and
least developed countries are not far from this. In fact, green economy is expanding in
many developing and least developed countries also, for example Cuba, Ecuador,
Barbados, Tanzania, Uganda, Tunisia, Kenya, India, Nepal etc. The level of
implementation is very high in developed countries because they have more financial and
technical power. But the developing and least developed countries face many obstacles in
greening their economic sectors due to financial and technical inability. So, the
advancement of green economy is very slow.
8

13. 1.4 Principles of green economy
There is a lot of discussions on the principles of green economy. Researchers and scholars
have different opinions regarding the guiding principles of this economy. Combining all
these discussions and opinions, the Earthsummit 2012 presented 15 principles for green
economy. Those principles are as follows:
1.4.1 Equitable distribution of wealth: The wealth of the world should equitably be
distributed among nations to reduce the disparity among rich and poor. Social and
economic justice should be ensured. The natural resources should be used in such a way
that wildlife gets sufficient space.
1.4.2 Economic equity and fairness: The countries of the world should bear common but
different responsibilities. The developed countries should transfer finance and technology
to the least developed countries so that the gap between them is minimized. At the same
time both of them will be able to ensure environmental sustainability.
1.4.3 Intergenerational equity: Environmental resources and ecosystem should be
managed and preserved in such a way that the value of the environmental assets is
increased for the future generations.
1.4.4 Precautionary approach: Science should be utilized to increase the social and
environmental outcomes. The environmental risks of using science should be identified.
Any bad impact of science on the environment should not be neglected.
1.4.5 The right to development: For achieving sustainable development, both the human
development and the environmental development are necessary. So, individuals and
societies should concentrate on both of these two types of developments.
1.4.6 Internalization of externalities: Building the social and environmental value should
be the main target of the policy. The market prices should reflect the social and
environmental costs and benefits. The polluters must bear the cost of pollution. Taxing
systems and regulatory activities should make good things cheap and bad things very
expensive.
9

14. 1.4.7 International cooperation: The environmental standards in one nation should be set
after construing their impacts on development potential of the other nation. Unfair trade
restriction should be removed. It should be ensured that trade supports sustainable resource
use, environmental protection progressive labor standards.
1.4.8 International liability: Actions implemented in a country may have impacts on the
other countries too. In this case, international cooperation is required. At the same time,
there should be international laws to provide solutions in such cases.
1.4.9 Information, participation and accountability: All citizens should have access to
the information relating to the environment. They should be given chance to participate in
decision making regarding the environmental issues. To handle the environmental issues
with the participation of the concerned citizens, all the institutes (both national and
international) should be democratic and accountable.
1.4.10 Sustainable consumption and production: Ensure sustainable production and
consumption with sustainable and equitable resource use. Reduce unsustainable patterns of
production. Reduce, reuse and recycle the materials used because the resources of the earth
are limited.
1.4.11 Strategic cooperation and integrated planning to deliver sustainable, green
economy and poverty alleviation: An integrated approach must be adopted at all levels
for achieving socio-economic sustainability and environmental sustainability. Strategic
planning should be made with the participation of civil society, stakeholders and concerned
governmental departments.
1.4.12 Just transition: In transition to the green economy, countries must incur costs.
Some wealthy countries will be able to bear the costs easily while the developing and least
developed countries may not be able to bear those costs. In such a situation, the vulnerable
countries should get financial and technical supports from the wealthy countries. Again the
citizens of the developing countries must have access to new skills and jobs.
1.4.13 Redefined well-being: GDP is an inadequate tool for measuring social well-being
and environmental integrity. Many socially and environmentally damaging activities
increase GDP, for example – fossil fuel exploitation and financial speculations.
10

15. Environmental health, quality of life and human well-being should be considered in
determining economic well-being.
1.4.14 Gender equality: Gender equity and equality is to be ensured in transition to the
green economy and in achievement of sustainable development. Women have many
important roles to play in environmental management and development. They should be
given the chance of skill development in this regard and their actions must be rewarded
accordingly.
1.4.15 Safeguard biodiversity and prevent pollution of any part of the environment:
Protect and restore biodiversity and
natural habitats because they are integral to
development and human well-being. Develop a system that protects the ecosystem from
damages.
1.5 The green economy: From theory to practice
The concept of green economy is not clear to many. As a result, there are also debates on its
operational framework, how it would be implemented in developing and least developed
countries, whether it would be implemented for shot term or long term. In spite of all these
debates the main inspirations regarding the implementation of green economy are the
externalities greenhouse gas emission, climate change, financial crisis etc) of tradition
fissile fuel based brown economy. The United Nations Environment Programme (UNEP)
also have taken position in favor of green economy.
Until now, the framework of green economy is stands on technological platforms and
economic opportunities associated with the new technologies. Much less has been
discussed regarding the potential negative social and environmental consequences of
implementing green economy. Again, much less has been discussed regarding the need to
reduce demand and overconsumption by the wealthy nations. Therefore, the researchers
define the ‘green economy’ as a repacking of consumption oriented neo-liberal economics.
There is no doubt that green economy aims at improving the environmental health of the
economy but question arises whether the developing countries can comply with this
approach or not. Developing countries may face many obstacles in implementing the
11

16. concept of green economy because they are to give priority on poverty reduction, rural
development, food and water security, energy access, transportation needs as mandatory.
As a result, they can not give much importance on environmental issues. It is a burning
question that how these countries can meet all the mandatory requirements while
maintaining environmental integrity. The answer of this burning question has been given by
Karl Burkart
In the definition of green economy Karl Burkart identified six priority areas on which the
developing and least developed countries should emphasize. These areas are – renewable
energy, green building, clean transportation, water management, waste management and
land management. Green activities should be implemented in these six areas with the help
of low carbon technologies. In this case, the developing countries may take financial and
technical support from developed countries.
1.6 Green economy and poverty reduction
The traditional economic system is, in many cases, responsible for growing economic
uncertainty, social inequality and widespread poverty. The millennium development goal of
reducing extreme poverty is very far for reach for many countries. The recent financial,
food and economic crisis in many countries of the world have made it very hard to fight
against poverty. All these crises lead to the depletion of natural resources but the poor
people depend mostly on the natural resources for livelihood, business and wealth creation.
As a result, the reduction of natural resources leads to the increase in poverty.
The share of poor people in the global GDP is very small. Again, this small portion of share
is reduced with the decrease of natural resources. The Champagne- Glass Distribution
(Figure: 1.1) shows that the bottom 40% of the population of the world owns less the 5% of
the global wealth. This is the segment of the people who live on small farms, coastal areas,
around forest and depend mainly on natural resources. The reduction or depletion of natural
resources not only creates poverty but also creates poverty trap which leads to further
degradation of the situation.
12

17. Figure-1.1: Champagne-Glass Distribution
Source:
http://thesocietypages.org/graphicsociology/2009/05/27/champagne-glass-
distribution-of-wealth/
In this condition, green economic system can play an important role in reducing poverty. It
is shown in different countries that the efforts for greening the economy have many positive
results in poverty eradication. These efforts improve the GDP growth, increase natural
capital, create more job opportunities and enhance the standard of living. UNEP research
suggests that if 2% of global GDP is invested in green economic sectors, the green
economic sectors will produce higher global GDP compared to the traditional economic
sectors and this higher GDP will be produced within only10 years.
Green agriculture presents many sustainable farming techniques, for example integrated
pest management, integrated nutrient management, low-tillage farming, agro-forestry,
aquaculture, water harvesting, livestock integration, nitrogen fixing crops etc. These
techniques can increase the level of production. Green agriculture also links the
marginalized farmers with different supply chains which increase their income. Thus, the
level of poverty is reduced. Researches show that implication of green techniques in
agriculture increase the production from 59 to 179 percent. Again, it is also shown in the
13

18. researches that for every 10% increase in agricultural production, there have been a 7%
reduction in poverty in Africa and more than 5% reduction in poverty in Asia.
Lack of safe drinking water and sanitation facility has a great negative impact on the socioeconomic condition of the poor people. This lacking is the main cause of sickness diseases
of the poor people. Sickness and diseases reduce their working hours and at the same time
increase medical costs. As a result, they face economic hardships. Green economy
emphasizes on proper water management and waste management which ensure the
availability of safe water and good sanitation systems. Thus the condition of health of the
poor people is improved. They can work more and earn more to get rid of poverty.
Traditional energy sources (oil, gas an coal) are not affordable to everyone and the ways of
distribution of these energy are not equitable. At the same time, excessive use of these
energies can lead to environmental degradation. So, green economy focuses on using
renewable energy sources (sunlight, wind, rain, tides, waves, geothermal heat etc). The use
of renewable energy will prevent environment pollution, improve human health and
increase economic activities in the low income areas especially in the rural areas. As a
result, the level of poverty will be reduced. The initial investment in renewable energy may
be high but different models have been developed to cover the costs.
Green economy also aims at increasing ecotourism. The term ecotourism means that
travelling should not have negative impact on the natural environment and it should
improve the well-being of the local people. Tourism is mainly human- resource intensive.
Ecotourism will increase the employment opportunities of the people and thus will
contribute to reduce poverty.
Natural calamities (floods, cyclones, drought, tidal wave etc) occurring around the world
have a great negative impact on the life and property. These calamities damage personal
property, crops and socio-economic infrastructure. As a result, economic activities are
hampered and poverty is increased in the affected areas. The natural calamities are the
results of air pollution, deforestation and climate change. Green economy reduces air
pollution through green transport. This economy also emphasizes on creating and
preserving forest lands. In this way, green economy tries to combat climate change and
reduce natural calamities. All these measures will reduce the occurrence of natural
14

19. calamities and destruction of wealth. So, fighting against poverty with a view to achieving
economic solvency will become possible.
Thus, green economy can play a significant role in reducing poverty and inequity around
the world. But the success of green economy in poverty reduction depends mostly on right
policy formulation and proper implementation. Right policies are to be formulated as per
the existing socio-economic conditions. However, positive outcomes from the policies may
take much time to come out although the policies are right and properly implemented.
1.7 Criticism of green economy
There are many criticism of the concept of green economy. Many individuals and
organizations criticized this concept from different point of view. Some of the famous
criticisms of green economy are presented below:
 Many researchers argue that green economy uses price mechanism to protect nature
which will extend corporate control over new areas like water and forestry.
 Research organization ETC Group argues that corporate emphasis on green
economy will increase corporate power and create the most resource gap.
 Venezuelan professor Edgardo Lander says that the UNEP’s report ‘Towards a
Green Economy’ ignores the fact that capacity of existing political systems to
establish regulations and restrictions to the free operation of the market is seriously
limited by the political and financial power of the corporations.
 Ulrich Hoffman says that the focus of green economy and green growth is
particularly based on an evolutionary approach. He argued that these concepts will
not be sufficient to cope with the complexities of climate change and may rather
give much false hope and excuses to do nothing really.
 Ecological economist Clive Spash argued that the green economy advocated by the
UN is not a new approach and it is actually a division from the real drivers of
environmental crisis. He also criticized the basis for valuing ecosystem services in
monetary terms.
15

20. CHAPTER 2
Components of Green Economy
Implementation of green economy requires an overall modification in the economic
system. Traditional fossil fuel based brown economy damages the natural environment and
ecosystem by over utilizing natural resources (coal, oil, gas etc.) and creating pollution.
Green economy focuses on making the overall economic activities environment-friendly.
According to the concepts of this economy, all the sectors of the economy should be made
green which means pollution free. The banking, investment, energy utilization, agriculture,
employment creation, transportation, water management, waste management and land
management in the economy should be made green. Thus the main components of green
economy are: Green banking, Green investment, Green agriculture, Green transportation,
Green employment or green jobs, Green fuel/renewable energy, Waste management, Water
management, Land management and Forestry. All these components of green economy will
be discussed in this chapter.
2.1 Green banking
2.1.1 Definition and meaning
Generally banks are considered as environmental-friendly and pollution-free institutes
because of their operational activities. But banking activities have indirect impacts on the
environment. Banks increase environment pollution by delivering financial and advisory
services to their pollution creating customers. Brick fields, cement, textiles, power,
fertilizer, paper, chemical and many other industrial projects are financed by the banks and
these industrial projects are mainly responsible for environment pollution and global
warming. So, banks can play an important role in environmental protection and
environmental sustainability.
Green banking is the operation of banking activities giving special attention upon the
environmental, ecological and social factors aiming at the conservation of natural
16

21. environment and natural resources. Green banking is also called ethical banking, moral
banking, sustainable banking and responsible banking.
2.1.2 Areas of green banking
Green banking activities have two broad areas. Firstly, banks can make their day to day
internal activities green by using renewable energy (solar power, wind energy etc.),
installing automation system and reducing paper based transactions. Secondly, banks can
develop environment-friendly financial and credit policies; determine environmental risks
before sanctioning loans to any project and support the growth of green undertakings
(renewable energy projects, waste management, clean transportation, organic agriculture
etc.).
2.1.3 Green banking products and services
Banks can offer a broad range of green products and services to their customers, for
example:
Green mortgages

Green saving accounts

Green loans

Green credit cards

Green checking account

Green money market account

Mobile banking

Online banking

Remote deposit

Green finance
2.2 Green investment
2.2.1 Definition and meaning
Investing activities which contribute to the protection and improvement of the natural
environment and ecosystem are called green investments. Companies that conserve natural
17

22. resources, produce and distribute renewable energy, run clean air projects, supply safe
drinking water and perform any other environmentally conscious business are called green
companies. Investing in these companies or in any other projects under these companies are
called green investments. The main feature of green investment is that it earns all or most
of its revenue and profit from green activities.
2.2.2 Some forms of green investments
Green investment may take the forms of traditional investment vehicles, for example
stocks, mutual funds and exchange trading funds etc. These investment vehicles are issued
by the green companies that are engaged in developing alternative energy sources (solar,
wind, biogas, hydropower etc.) and have the conscious environmental practices. In the
major stock exchanges of the world, many green companies are seen to trade their stocks.
Green investing can be made through exchange trading funds (ETF) which takes the forms
of stock indexes made up of green companies. Mutual fund can also be an alternative form
of green investing in which a portfolio manager makes the green asset allocation decisions
based on the fund’s prospectus.
2.2.3 Risk and return on green investments
Green investments are environment-friendly investments and can take the form of
traditional investments. But it should not be thought that these green investments are safer
and more high-yielding compared to the traditional non-green investments. Most of the
green companies are in their developing stage. High initial costs are associated with these
companies because they focus on developing alternative energy sources and methods. As a
result, the revenue yields of these companies are low. At the same time, investing in these
green companies is riskier than investing in the traditional companies. However, these
green companies have high earnings and growth potentials.
2.2.4 Wrong ideas regarding green investments
Sometimes people hold very wrong beliefs and ideas regarding green investments and
green companies. They consider some companies as green but actually these companies are
operating in the grey areas. A company may have very good environmental preservation
measures but still may be non-green. Unfortunately, some investors consider this type of
18

23. companies as green companies. For example, if oil companies take required precautionary
measures to minimize the direct damages to the environment while drilling for oil, some
may think that the companies and their operations are green. Based on this wrong idea, they
may take decisions to invest in these companies. But actually these companies are not green
because burning the fossil fuel is one of the main causes of global warming.
2.3 Green agriculture
2.3.1 Definition and meaning
The agricultural systems which reduce the application of chemical fertilizers and pesticides,
increase the firm’s productivity, rebuild ecological resources, reduce soil erosion and
enhance soil fertility, are called green agriculture.
2.3.2 Benefits of green agriculture over the conventional agriculture
Green agriculture has many benefits over the conventional agriculture. Firstly, the
conventional agriculture emits many harmful gases in the atmosphere. Researches show
that conventional agriculture is responsible for 58% of global nitrous oxide emission and
47% of global methane emission. By 2030, methane emission is expected to increase by
60% through the conventional agricultural system. But if green agricultural methods are
used, these emissions can be reduced. Secondly, traditional agriculture requires more
farming lands. So, forests are being cut down for increasing cultivable lands. This
deforestation is responsible for 18% increase in greenhouse gas in the atmosphere. Green
agriculture can increase production without utilizing more lands. As a result, the level of
deforestation and greenhouse gas emission will be reduced. Thirdly, the conventional
agriculture increases the use of phosphorus content in the environment. The use of
phosphorus content has increased by 75% during the last half century. This content flows to
the canals, rivers and oceans by rain water and floods. This creates a great threat to the
ecosystem in the watery areas. This thereat can be handled through implementing green
agriculture. Finally, the conventional agriculture uses much chemical fertilizers and
pesticides for increasing the production. These chemical items enter into the food chains of
19

24. human and animals. As a result, human food chains are polluted causing over 40000 deaths
per year. This large number of deaths can be prevented by implementing green agriculture.
2.3.3 Methods of green agriculture

Organic agriculture

Crop diversification

Mixed cultivation

Mushroom cultivation

Bee keeping

Pesticide free vegetable cultivation

Sericulture

Bio-slurry

Conservation agriculture
2.3.4 Concerns in transitioning to green agriculture
While transitioning to green agriculture from traditional agriculture, food production may
face a mild decline at the very beginning stage. But proper implementation of green
agricultural methods will dramatically increase the production and at the same time
contribute to restore ecosystem. It should also be kept in mind that proper implementation
of green agriculture requires private, public and civil initiatives, food security and social
equity.
2.4 Green transportation
Transportation sector is the major source of greenhouse gas emission and environment
pollution. Currently, 95% of transportation energy comes from petroleum. Researches show
that 23% of global energy-related greenhouse gas is emitted from transportation sector.
Prevention of pollution in this sector is also the objective of green economy.
Green transportation is one of the main sectors in green economy. According to UNEP,
transportation is considered ‘green’ when it supports protection of climate, ecosystem,
20

25. public health, natural resources, economic growth and social welfare. The goal of green
transportation is not only to reduce air pollution but also to support economic growth.
There are many ways by which transportation sector can be made green. Firstly, public
transportation system should be given more importance and private vehicles should be
reduced. This will minimize the emission of greenhouse gas. Secondly, rail and marine
transportation should be given priority over road transportation because these transportation
systems have low emission of greenhouse gas. Thirdly, hybrid engines can be used in
motor vehicles which will increase energy efficiency and reduce air pollution. Fourthly, use
of electric and solar energy should be increased in transportation sector for greening this
sector. Finally, the greenest transportation means which include walking, cycling, nonmotor vehicles, animal powered vehicles and human powered vehicles can be used.
2.5 Green employment or green jobs
2.5.1 Definition and meaning
Green employment means environment-friendly employment opportunities. Works that
protect environment, restore biodiversity, reduce energy consumption, decarbonize the
economy, minimize waste generation and protect pollutions are called green employment.
Working in agriculture, performing research and development (R & D) activities,
performing administrative works, developing alternative energy sources and providing
environment conscious services are the examples of green jobs.
According to UNEP and ILO, green jobs can be generally defined as the direct employment
created in different sectors of the economy and through related activities, which reduce the
environmental impact of those sectors and activities, and ultimately brings it down to
sustainable levels. This includes ‘decent’ jobs that help to reduce consumption of energy
and raw materials, decarbonize the economy, protect and restore ecosystem services like
clean water, flood protection and biodiversity and minimize the production of waste and
pollution. This definition of green job also covers the criteria of decent work condition,
adequate wage, safe working conditions, worker’s rights, social dialogue and social
protection.
21

26. 2.5.2 Ways of creating green jobs
Green jobs can be created in many ways. Firstly, by developing and promoting the
renewable energy sources will create many green jobs. Many people will be able to work in
the development and promotion of these energy sources. At the same time, many industries
and economic activities will grow up based on these energies which will create green jobs.
Secondly, by promoting green agriculture many green jobs can be created, for example
organic farming, mushroom cultivation, bee keeping, sericulture, water conservation and
pesticide free vegetables cultivations can create many green jobs. Thirdly, eco-friendly
services, for example ecotourism, forestation and conservation of forests, can create green
jobs. Fourthly, sustainable transport, for example mass transport, can create green jobs.
Finally, activities related to reduce greenhouse gas and climate change adaptation can also
create a lot of green jobs.
2.5.3 Green employment and the concern of social welfare
Besides environmental conservation, green employment has to concentrate on social
welfare. Otherwise, crating social employment will be hampered. So, green employment
should ensure:
Employment opportunities for all

Unforced work and equitable payment

Proper utilization of the productivity of the factors of production

Fair and equal treatment in employment

Gender equality

Decent working hours

Favorable working environment

Social protection for the employees and workers

Social dialogue for the betterment of the workers

Healthy workforce relations
2.5.4 Influencing factors or drivers of green employment
The influencing factors or drivers of green employment are as following:

Government policy and regulations

Available technology
22

27. 
Innovation

Markets for green industries

New customer habits

Changes in the environment
2.5.5 Obstacles in the way of creating green employment
Creating green employment opportunities requires many changes in the sectors of
traditional economy. As a result, there are many obstacles in fostering green employment.
Firstly, many people have the traditional thinking and they are not willing to think the
economy and its activities in a different way. This traditional thinking obstructs the creation
of green employment when these people are in the policy making. Secondly, there is a risk
that the green industries and companies will not get suitable market or customer group at
the initial stage. This risk also deters the creation of green employment. Thirdly, creation of
green employment depends much on technological advancements and innovations. If there
is lack of innovation and lack of technological unavailability, creation of green employment
will be hampered. Finally, there are many interested groups who favor the brown economic
activities, for example extractors of mineral resources, exporters of mineral resources,
transportation companies and trade unions. These interested groups create obstacles in the
way of creating green employment.
2.6 Green fuel/renewable energy
2.6.1 What is renewable energy?
Energy sector is one of the most important sectors of economic development and
advancement. In the present world, energy is mainly supplied from three mineral resources,
coal, oil and gas. With a view to achieving high economic growth these mineral resources
are used in a large scale. As a result, the environment of earth is continuously being
polluted. Again, these mineral resources have limited reserves on earth. There is a
possibility that the scarcity of these resources will hamper the economic growth in near
future. So, we are standing in front of an environmental and economic crisis. In such a
condition, the green fuel or renewable energy can give us proper solution. This renewable
23

28. energy is the inseparable part of green economy. These energies are pollution-free and their
supply will not run out.
Renewable energy is generally defined as energy that comes from resources which are
continuously replenished on a human timescale. Examples of renewable energy sources
include sunlight, wind, rain, tide, waves and geothermal heat etc. But all these sources
directly or indirectly derive their energy from the sun.
2.6.2 Available technologies for utilizing renewable energy sources
Many technologies have been developed for the utilization of renewable energy sources and
many technologies of this field are in developing stage. For example:
Wind power technology – this technology uses the velocity or speed of the wind to
generate electricity.

Hydropower technology – this technology uses the speed of the water flow for
generating energy.

Solar energy – this technology uses the radiation of sun for generating heat and
electricity.

Biomass – by photosynthesis, the plants capture energy from the sun. This energy is
then stored in the plants. When the plants are burnt they release the stored energy.

Biofuel technology – this technology produces energy from the plant or animal
body, for example biogas, synthetic gas, landfill gas etc.

Geothermal energy – thermal energy is generated and stored in earth. This energy is
generated from the formation of earth and from radiation decay of minerals. This
stored thermal energy can be used to produce electricity.
2.6.3 Economic benefits of renewable energies

Renewable energy can fill up the energy shortage.

Renewable energy sources are environment-friendly and reduce pollutions.

Renewable energies can be utilized at low costs.

Renewable energies can play an important role in rural electrification.

These energies foster economic growth.
24

29. 
Development and distribution of these energies can create employment
opportunities.

Small, medium and cottage industries can grow up depending on these renewable
energies.
2.6.4 Problems in the renewable energy sector
There are many reasons for which the use of renewable energies is criticized. Firstly, some
of the renewable energy sources are variable and intermittent, for example, solar power and
wind power. Secondly, sometimes people hold wrong ideas regarding these energies. It is
found in many cases that building the renewable energy infrastructure is resisted by the
local people. Finally, the success of the renewable energy projects depends on public
support and consent from the local community. A potential project in this sector may not
succeed due to lack of public support and local acceptation. However, it is also true that all
these problems can be overcome through the development of efficient technology and
creating public awareness.
2.7 Waste management
2.7.1 Definition
Waste management is a major part of green economy. Huge quantities of wastes are being
generated every day from households, industries, agriculture and transportation. Proper
management of these wastes has become a great concern in the present times because of
their negative impacts on environment and human health. As a result, green economy pays
much importance on proper management of wastes.
Waste management is the collection, transportation, processing, disposal, managing and
monitoring of waste materials. Waste management relates two broad areas - Firstly, the
production of waste materials in human activity and secondly, the process undertaken to
reduce their effects on environment, health and aesthetics. All types of waste materials, for
example liquid, solid, gaseous or radioactive, fall under the area of waste management.
Proper implementation of green economy is not possible without ensuring proper waste
management.
25

30. 2.7.2 Concepts related to waste management
Waste hierarchy – waste hierarchy consists of two 3 Rs (reduce, reuse and recycle). This
concept guides that the quantity of waste generation should be reduced, the wastes
generated from different sources should be reused for generating energy or other products,
efficient technologies should be used to recycle the waste materials for further use.
Polluters pay principle – polluters pay principles says that the waste generating parties
should pay for the impacts of waste in the environmental. They should also bear the cost of
waste disposal.
2.7.3 Methods of waste management
Landfill – this is the most inexpensive method of waste management. Under this method,
waste materials are buried in any abandoned land, mining voids and borrow pits. If properly
designed and well-managed, landfill can be a hygienic way of waste disposal. But if not
properly managed, this method will create pollutions and affect human health.
Incineration – under this method, solid or liquid organic wastes are treated. Organic wastes
are subjected to combustion so as to convert them into residue and gaseous products. This
method can reduce the quantity of solid waste up to 30%. Incineration converts waste
materials into heat, gas and stems. This method is also called thermal treatment.
Recycling – this is a method of using the waste materials to produce new products. There
are some waste materials, for example unused cans, glass bottles, useless steels, old
equipment, jars, newspapers, paper boars and cartoons, which can be reused by converting
into new products. This method is an efficient way of waste management.
Biological reprocessing – this method of waste management is useful for organic materials,
for example plant material, paper products and food scraps. This method uses composting
and digestion process for decomposing the organic materials. The resulting materials are
then used as compost in agriculture. Again, the composting and digestion process creates
waste gas (methane) that can be captured and used for generating electricity and heat.
26

31. 2.8 Water management
Water is essential for life. Only 3% of the water resource on earth is fresh water. Of this
3%, two-third is locked up in ice caps and glaciers. From the remaining 1%, one-fifth is
located in remote areas and is subject to seasonal rainfall. Only 0.08% world’s fresh water
is available for our drinking, cooking, agriculture, manufacturing and other economic
activities. Due to the increasing economic activities, this limited usable water is
continuously being contaminated. So, proper management of this resource has become a
part of green economy.
Green economy aims at protecting water pollution, conserving water, purifying
contaminated water and ensuring the supply of safe water for all. In green economy, water
management is the activity of planning, distributing and managing the optimum use of
water resource. Success of green economy depends on sustainable, integrated and resourceefficient use of water.
Green economy gives much importance on urban water management because the major
sources of water pollution, for example households, mills, industries and sewerage, are
mainly in the urban areas. These sources produce huge quantity of waste materials which
finally fall in the rivers and canals. Again, the largest user of water resource is agricultural
sector which consumes almost 70% of total water consumption. In this sector, many
chemical fertilizers and pesticides are used to increase production. These chemicals flow to
the ponds, lakes, canals, rivers and oceans through rain water. So, water management in
this sector is also a great concern of green economy. Measures suggested for the efficient
management of water resource include introducing safer irrigation practices, promoting onfirm wastewater treatment, actions to destroy pathogens from water, reducing the using of
chemical fertilizers and pesticides etc.
2.9 Land management
Land is the most important no-renewable geo-resources of the earth. Land supports most of
our economic and social activities. As the civilization advances, the socio-economic
activities (business, agriculture, mining, industrialization, urbanization, education etc.) also
27

32. increase. These increased socio-economic activities have negative impacts on land, for
example- loss of fertility, land pollution, land degradation, soil erosion etc. As a result, the
supply of fertile land is reducing. Proper land management has also become a great
challenge for the present world. The area of green economy also covers sustainable land
management. So, land management is also a component of this economy. This economy
aims at conserving fertility of land, preventing land erosion, reducing land pollution and
ensuring proper allocation of land among different economic activities.
2.10 Forestry
Almost one-third of the land mass of the earth is covered by forests. More than 1.6 billion
people directly or indirectly depend on forests for their livelihood. Forests play very
significant role in controlling the flow of the rivers and ensuring water supply for us.
Moreover, forests have many other ecological, economic, social and health benefits, for
example protecting natural calamities, creating jobs, conserving the ecosystem, providing
shelter for plants and animals etc. in spite of all these positive contributions, we are
destroying forests at random. Global deforestation rate at present is 13 million hectares per
year. But forests are at the heart of green economy or environment-friendly economy. So,
forestry sector is one of the inseparable components of this economy. This economy aims at
reforestation, fighting deforestation and conserving forest lands. A research of United
Nations Environment Programme (UNEP) suggests that a $30 billion investment in fighting
deforestation will generate a 2.5 trillion savings in products and services.
28

33. CHAPTER 3
Advancement of Green Economy Around the World
The world is gradually moving towards green economy. The transition to green economy or
environment-friendly economy is not at the same level around the world. This transition
level is very high in some countries, for example Switzerland, Australia, Singapore,
Luxemburg etc. Again in some countries the transition level is very low, for example
Afghanistan, Somalia, Mali, Haiti, Iraq etc. This chapter of the paper tries to present an
overall picture of green economic advancement around the globe. There is no single
measurement or rating by which we can understand the global advancement towards green
economy. If we want to get such an overall picture, we have to go through the following
three types of discussions:
3.1 Sector wise advancement of green economy in different countries
3.2 Successful green economic initiatives in different countries
3.3 Environmental Performance Index 2014 and top performer countries
After going through all these discussions, we will understand the overall progress of green
economy around the world.
3.1 Sector wise advancement of green economy in different countries
3.1.1 Green banking in different countries
Economic development and environmental sustainability are very closely related. But
keeping a balance between these two is very challenging. When we think about economic
development, environmental issues will come automatically. Besides, greenhouse gas
emission, global warming and climate change have emerged as the most important
discussed issues all over the world. People all over the world are raising their voice against
environmental degradation. As a result, governments in many countries are trying to ensure
a balanced economic development without damaging the natural environment.
29

34. In such a condition, green banking can play a significant role in conserving the
environment. The concept of green banking has been developed in the western countries
but now it is practiced in most of the countries of the world. Green banking is the practice
of environment-friendly banking activities which help to preserve the environment.
Through this practice, banks provide innovative green products and support economic
activities which are not hazardous to environment.
Green banking practices exist in many countries of the world and some of them have
achieved much progress in this field. For example, England, Australia, Malaysia, Brazil,
Canada, Hong Kong, China, Japan, Spain, USA, Germany, Switzerland, South Africa,
India, Hungary, Poland, Qatar, Scotland, Serbia, Singapore, South Korea and Turkey have
advanced in green banking practices. But the level of practices is not the same for all these
countries and there is no universally accepted ranking of countries practicing green
banking. But every year, green banks are ranked according to their green performance by
Bloomberg Markets Magazine.
To make ranking, Bloomberg Markets looks at their efforts to reduce their own waste and
carbon footprints and at their investments in clean energy. In 2012, this magazine ranked
top 20 green banks from different countries. The ranking is presented below:
Table: 3(a)
Ranking
Banks
City/country
1
Citygroup
New York, USA
2
Banco Santander
Madrid, Spain
3
JPMorgan Chase & Co.
New York, USA
4
Mitsubishi UFJ Financial Group
Tokyo, Japan
5
Credit Suisse Group
Zurich, Switzerland
6
Goldman Sachs Group
New York, USA
7
Deutsche Bank
Frankfurt, Germany
8
Mizuho Financial Group
Tokyo, Japan
9
Lloyds Banking Group
London, UK
10
Barclays
London, UK
11
Morgan Stanley
New York, USA
30

35. Ranking
Banks
City/country
12
Standard Bank Group
Johannesburg, South Africa
13
Itau Unibanco Holding
Sao Paulo, Brazil
14
Royal Bank of Scotland Group
Edinburgh, Scotland
15
UBS
Zurich, Switzerland
16
Sumitomo Mitsui Financial
Tokyo, Japan
17
Macquarie Group
Sydney, Australia
18
Royal Bank of Canada
Torrent, Canada
19
Commerzbank
Frankfurt, Germany
20
Banco Bilbao Vizcaya Argentaria
Bilbao, Spain
Source: Bloogmerg Markets, Apr 3, 2013
3.1.2 Top countries in green investments
Clean technology, renewable energy and environment-oriented companies are reshaping the
global economy while pure resource focused economies may decline in the near future.
Countries those focus on environment and its sustainability may emerge as the economic
leaders. In 2012, researchwhitepaper.com made a list of top countries for green investment.
Those countries are: Canada, United States, China, Australia, Japan, Germany, Sweden,
Israel, Singapore and United Kingdom
3.1.3 Use of renewable energy around the world
Sustainable Energy and Renewable Energy are terms which are thrown around a lot these
days. The US Energy Information Administration (EIA) estimates that in 2008, 10% of the
world’s energy consumption was from renewable energy sources. EIA forecasts that by
2035, consumption of renewable energy will be about 14% of total world energy
consumption.
The coal, oil and natural gas on which the world relies heavily are all non-renewable and
will eventually dwindle and disappear. By contrast, many types of renewable or sustainable
energy sources, such as wind and solar energy are constantly replenished and will never run
out.
31

36. These are clean sources of energy which means that they have a much lower environmental
impact than conventional energy technologies. They won’t run out, their costs revolve
around materials and workmanship for facilities rather than on expensive energy imports.
The major portion of world’s renewable energy is in the hand of five countries. The
possession of renewable energy can be summarized in the following table.
Table 3(b)
Country
% of world’s share
of renewable energy
USA
27.70%
Germany
11.70%
Spain
7.80%
China
7.60%
Brazil
5.00%
Others
40.20%
Source: care2 [Online]. (URL http://www.care2.com/causes/5-top-countries-leading-the-world-inrenewable-energy.html#ixzz28varlY00)
The United States: Use of renewable energy is increasing due to federal, state, and local tax
and other incentives, as well as mandated state goals. Despite, attempting to join
international agreements or to introduce long-term, large scale reductions in emissions, this
has met with opposition in Congress and in the private sectors.
Germany: Germany made a historic decision when the country decided to phase out nuclear
power in favor of alternative sources by 2022. Ironically, it is the only country in the G-20
economic bloc to project a decline in clean energy investment partially because it has
already done much as an early leader in renewable energy.
32

37. Spain: In April 2012, wind power became Spain’s largest source of electricity generation
although the country still imports the majority of its energy. Spanish producers are also
building turbines and installing wind farms internationally. Sadly, with the current
economic problems in Spain, this may change.
China: China is erecting 36 wind turbines a day and building a robust new electricity grid
to send this power thousands of miles across the country from the deserts of the west to the
cities of the east. It is a part of a long-term plan to supply 15% of the country’s energy from
alternative and renewable sources by 2020.
Brazil: Brazil has boosted large investments into the wind sector through government
auctions for contracts and is also working to attract foreign investment into solar
energy. The country has also made a pledge to have solar power in all twelve venues when
it will host the 2014 World Cup.
Other countries, for example Switzerland, France, Denmark, Australia, New Zealand,
Norway, Canada, Sweden and United Kingdom also produce and use much renewable
energy.
3.1.4 Use of solar energy around the world (2010)
Table 3(c)
Country
Capacity
(Megawatt)
Germany
17,183
Spain
3,784
Japan
3,682
Italy
3,494
USA
2,528
33

38. Country
Capacity
(Megawatt)
Czech Republic
1,953
France
1,025
China
893
Belgium
803
South Korea
655
Rest of the world
3,596
Source: European Photovoltaic Energy Association
3.1.5 Use of wind power around the world (2012)
Table 3(d)
Country
Installed capacity
(Megawatt)
China
75,564
USA
60,007
Germany
31,332
Spain
22,796
India
20,149
UK
8,445
Italy
8,144
France
7,196
34

39. Country
Installed capacity
(Megawatt)
Canada
6,200
Portugal
4,425
Rest of the world
39,852
Source: Wind power by counties, Wikipedia, the free encyclopedia
3.1.6 Use of hydropower around the world (2010)
Table 3(e)
Country
Capacity (Giga watt)
China
1,96,790
Canada
88,974
USA
79,511
Brazil
59,080
Russia
45,000
India
33,600
Norway
27,528
Japan
27,229
Sweden
16,209
Venezuela
14,622
Source: http://www.seriousrankings.com/
35

40. Hydropower is used in at least 150 countries. Almost 20% of world electricity production
depends on this power. The use of this power is expected to grow by 40% within the next
25 years.
3.1.7 Use of geothermal energy around the world (2013)
Table 3(f)
Country
Capacity (Megawatt)
USA
3,389
Philippines
1,894
Indonesia
1,333
Mexico
980
Italy
901
New Zealand
895
Iceland
664
Japan
537
El Salvador
204
Kenya
195
Rest of the world
773
Source: Geothermal electricity. Wikipedia, the free encyclopedia
3.1.8 Advancement of organic/green agriculture around the world
Agricultural land under organic agriculture is increasing in different parts of the world, for
example Africa, Western Europe, Latin America, Caribbean areas and the USA. The
advancement of organic agriculture can be summarized as:

At present, land under organic agriculture around the world is 38 million hectors.

In more than 10 countries, the organic agricultural land is 10% of total farm land.

1.8 million Producers are engaged in organic farming.

The global market for organic agriculture is 62.8 billion US dollar.

86 countries have organic legislation.

162 countries have sufficient data on their organic agriculture.
36

41. The countries which have the most organic agricultural land (2011) are as following:
Table 3(g)
Country
Organic agricultural
land (Million
hectares)
Australia
12.00
Argentina
3.80
USA
1.90
China
1.90
Spain
1.60
Italy
1.10
India
1.10
Germany
1.00
France
1.00
Uruguay
0.90
Rest of the world
11.70
Source: FIBL & IFOMA
3.2 Successful green economic initiatives in different countries
3.2.1 Organic agriculture in Cuba
The collapse of Soviet Union and the long lasting trade embargo hampered the
institutionalized agriculture in Cuba in 1980s. Cuban producers faced the insufficient
supply of fertilizer, pesticides and other agricultural materials. They took this disadvantage
as an opportunity. They converted their traditional farming systems into organic methods.
The Cuban government eliminated the state-owned farms and let them operate as
cooperative production units in 1993. More than 80% of the state-owned farm lands were
handed over the local farmers. Although the farmers did not get the complete ownership,
they got the right to rent their lands as long as they could meet the production targets which
was known as production quotes. The farmers could sell the excess crops after meeting
37

42. their targets. This would give an incentive for the farmers and they could buy biofertilizers, composts and grazing animals for increasing their firm’s yield.
National policies also encouraged urban organic farming. In 1994, the government started a
programme called National Programme on Urban Agriculture. This programme encouraged
the city dwellers to utilize their vacant lots and backyards in organic farming. More than
3,50,000 well-paid jobs were created through that urban farming and the city of Havana
produced 4 million tons of fruits and vegetables per year. Soon, Cuba became selfsufficient in agriculture.
Organic farming in Cuba not only had positive impacts on food security but also had
numerous positive impacts on society, economy and environment. Chemical fertilizers and
pesticides were avoided in the agriculture. As a result, Cubans could ensure good health
and long-term wellbeing.
3.2.2 Forest management in Nepal
40% of the land area of Nepal was covered by forest lands. But during 1990s the forest
lands were declining at 1.90% annually. To protect deforestation the government of Nepal
took many measures. On of them was the establishment of Community Forest User Groups
(CFUG). Through those groups, the country could manage one-fourth of its forest lands.
Since 1990, 14000 CUPGs have been employing 35% of total population.
Each group is given the responsibility for a specific area of forest. The group members
form their own operational policies, determine harvesting rules, set prices for their products
and decide how the surplus income will be utilized. These groups also provide savings,
credit and scholarship facilities among the members. These facilities ensure an inclusive
growth. The Forest Act 1993 of Nepal and the Forest Rules 1995 provide the legal basis for
the Community Forest User Group. These rules and law recognize these groups as selfgoverning autonomous bodies in forest management.
These initiatives have many positive outcomes on the economy, society and environment.
Many employment opportunities have been created, income of people has been increased,
social well-being of people has been enhanced and sustainable land and water management
have been ensured by these CFUGs. Most importantly, the country has succeeded in
38

43. stopping the high decline in forest lands. Instead, the forest lands are increased at an annual
rate of 1.35% in Nepal.
3.2.3 Solar energy in Barbados
Barbados previously depended much on imported fossil fuel. As a result, the environment
of the country started to decline gradually. In 2006, the government formulated a National
Strategic Plan for 2006-2025 to reduce the dependence on fossil fuel and increase the use of
renewable energy. Particularly the government focused on household solar water heater.
The formula targeted a 50% increase in the number of household solar water heater. In
2012, Barbados could save 15,000 tons of carbon emissions and more than USS 100
million was the country’s energy savings.
The solar water heater became very popular in the country. At present, half of the
household use this technology. There are more than 40,000 solar water heaters of which
75% are being used for household purposes. The solar water heater has successfully
penetrated in the domestic market. There are three Barbadian companies who are mainly
controlling the market of this technology. These companies also have carbon credit
potential.
3.2.4 Waste management in Republic of Korea
The Republic of Korea has a tremendous success in waste management. In this country,
waste materials are reused through recycling process. Although the generation of wastes
has not declined in the country, proper management of wastes has rendered numerous
benefits. The recycling activities are rapidly increasing and as a result, many new job
opportunities are also increasing.
The government’s Extended Producer’s Responsibility (EPR) system requires producers
and importers to recycle a certain amount of waste materials. This system has created 3,200
new jobs and recycled more than 6,000 million tons of waste materials with a monetary
value of $ 1.6 billion. This system has also reduced the CO2 by 4.12.000 tons. The volume
of waste in the country is increasing but the quantity of recycling is also increasing. In
1995, 23.70% of the municipal solid waste was recycled while in 1007, 81.10% of
municipal solid waste was recycled.
39

44. The quantity of waste which is not recycled is land filled. Korea also has introduced a land
filled gas recovery project. Through this project, land filled gas is recovered and utilized
for electricity generation. In 2009, this project produced 363.229 MWh. This project also
has environmental benefits. It is estimated that by 2017 the project will reduce the CO2
emission up to 7 million tons. It is also estimated that from 2007 to 2017 this project will
save Korea $126 million.
3.2.5 Eco-system restoration in Rwanda
The protection and management of the environment is one of the pillars of Rwanda’s
Vision 2020. The country has undertaken many initiatives to protect ecosystems for income
generation and good governance. Several of these projects are the initiatives to preserve the
Rwandan mountain gorilla and wetland restoration efforts in the Nyabarongo-Akagera
network and Rugezi.
Rwanda is home to the Gorilla beringei graueri, which is one of the world’s rarest species
of gorilla. By collaborating with the Democratic Republic of Congo and Uganda in a shared
commitment to ecosystem restoration, Rwanda has helped to restore the population of this
critically endangered species to a slight increase in the Virungas National Park.
In addition to the ecological benefits of preserving a threatened species, this scheme to
protect the Rwandan mountain gorilla is also generating substantial revenues from tourism.
The country’s booming tourism industry, which now accounts for the biggest share of
national GDP, is driven primarily by the flagship gorilla. After a decline in tourism in the
1990s, gorilla visitation has since increased from less than 1200 tourists in 2000 to a record
of 7417 visitors in 2004. With visitors paying US $375 each to see the gorillas, these
tourists have generated over $3 million in revenue every year since 2005. This has also
contributed to the creation of many new jobs to cope with the management and
maintenance of the National Park and its related touristic activities.
According to the Rwandan government, the majority of the revenue produced by tourism is
reinvested in the park and in wildlife conservation. Some of these profits are also devoted
to local projects in the area so that the local people can also get benefit from the enormous
revenues generated by the park.
40

45. 3.2.6 Feed-in Tariffs in Kenya
Kenya’s energy profile is characterized by a predominance of traditional biomass energy to
meet the energy needs of the rural households and a heavy dependence on imported
petroleum for the modern economic sector needs. As a result, the country faces challenges
related to unsustainable use of traditional forms of biomass and exposure to high and
unstable oil import prices. In March 2008, Kenya’s Ministry of Energy adopted a feed-in
tariff.
A feed-in tariff (FIT) is a policy instrument that makes it mandatory for energy companies
or “utilities” responsible for operating the national grid to purchase electricity from
renewable energy sources at a pre-determined price that is sufficiently attractive to
stimulate new investment in the renewables sector. This, in turn, ensures that those who
produce electricity from identified renewable energy sources such as solar, wind and other
renewable sources have a guaranteed market and an attractive return on investment for the
electricity they produce. Aspects of an FIT include access to the grid, long-term power
purchase agreements and a predetermined price per kilowatt hour (kWh).
It is expected that the FIT policy in Kenya could stimulate about 1300 MW of electricity
generation capacity. If the projected generation capacity is realized, this could contribute
significantly to ensure security of electricity supply in the country by increasing the reserve
margin. As Kenya’s greatest renewable energy potential is in rural areas, the effects of the
feed-in tariff policy are expected to trickle down and stimulate rural employment. This can
happen through the construction of power plants.
3.2.7 Organic agriculture in Uganda
Uganda has taken important steps in transforming conventional agricultural production into
an organic farming system, with significant benefits for its economy, society and the
environment. Organic agriculture (OA) is defined by the Codex Alimentarius Commission
as a holistic production management system, which promotes and enhances agro-ecosystem
health, including biodiversity, biological cycles and soil biological activity. It prohibits the
use of synthetic inputs, such as drugs, fertilizers and pesticides. Uganda uses the lowest
amount of artificial fertilizers in the world. The widespread lack of fertilizer use has been
41

46. harnessed as a real opportunity to pursue organic forms of agricultural production. A policy
direction has widely been embraced by Uganda.
In Uganda 85% of the population was engaged in agricultural production, contributing to
42% of the national GDP and 80% of the exports earnings in 2005/06. As early as 1994, a
few commercial companies began deliberately engaging in organic agriculture. At the same
time in Uganda, there was a general movement in the agricultural sector towards
developing sustainable agriculture as a means of improving people’s livelihoods.
By 2003, Uganda had the world’s 13th-largest land area under organic agriculture
production and the highest in Africa. In 2004, Uganda had around 185,000 hectares of land
under organic farming covering more than 2 per cent of agricultural land, with 45,000
certified farmers. By 2007, 296,203 hectares of land were under organic agricultural
production with 206,803 certified farmers. This constituted an increase of 59% in terms of
number of farmers and 60% in terms of acreage from 2002 to 2007.
Certified organic exports increased from US$3.7 million in 2003/4, to US$6.2 million in
2004-2005, before jumping to US$22.8 million in 2007/8. In terms of price premiums and
income for farmers, studies commissioned by UNEP and UNCTAD indicate that in 2006
the farm-gate prices of organic pineapple, ginger and vanilla were 300 per cent, 185 per
cent, and 150 per cent higher, respectively than conventional products.
Through organic farming, Uganda not only gains economically but also contributes to
mitigating climate change, as GHG emissions per hectares are estimated to be on average
64% lower than emissions from conventional farms. Various studies have shown that
organic fields sequester 3–8 tones more carbon per hectares than conventional agriculture.
3.2.8 Solar energy in Tunisia
To reduce the country’s dependence on oil and gas, Tunisia’s government has undertaken
steps to promote the development and use of renewable energy. A law established an
“energy conservation system” on energy management in 2005. A fund mechanism was also
created called the National Fund for Energy Management. This found was created to
42

47. support the increased capacity in renewable energy technologies and also to improve
energy efficiency.
From 2005 to 2008, clean energy plans have already allowed the government to save $1.1
billion in energy bills. Primary energy consumption from renewables together with savings
from energy efficiency, reached to 20 per cent of total energy consumption in 2011.
Total financial requirement to implement the plan have been estimated to $2.5 billion,
including $175 million from the National Fund, $530 million from the public sector, $1,660
million from private sector funds and $24 million from international cooperation. The total
fund is expected to be spent by 2016 on 40 renewable energy projects. Approximately 40%
of the will be utilized to the development of energy export infrastructure. The energy
savings expected to result from the Solar Energy Plan may reach 22 per cent for 2016 and
reduction in CO2 may reach 1.3 million tons per year.
3.3 Environmental Performance Index 2014 and top performer countries
In every two years, countries are ranked using the Environmental Performance Index (EPI).
It ranks how well countries perform on high-priority environmental issues in two broad
policy areas: protection of human health from environmental harm and protection of
ecosystems. Within these two policy objectives the EPI scores country performance in nine
issue areas comprised of 20 indicators. Indicators in the EPI measure how close countries
are to meet internationally established targets or how close they are to the expected
achievement (in absence of an internally established target). Recently an EPI has been
published on 25th January 2014. This EPI ranked 178 countries according to their
environmental performances. Top countries in the overall index are:-Switzerland,
Luxemburg, Australia, Singapore, Czech Republic, Germany, Spain, Austria, Sweden,
Norway, Netherlands, UK, Slovenia, Denmark, Iceland, New Zealand, Portugal, Finland,
Ireland, Estonia etc.
The nine issue areas of this index indicate the country’s performance in different
environmental area. Although these issue areas are related to environmental performance,
43

48. they are closely related to the green economy. So, this section of the paper will highlight
the top countries in each issue area of EPI 2014. These nine issue areas of EPI 2014 are:
1. Health impacts
2. Air quality
3. Water and sanitation
4. Water resource
5. agriculture
6. Forests
7. Fisheries
8. Biodiversity and habitat
9. Climate and energy
Top performer countries in different issue areas are in the following table:
Table 3(h)
SL
Issue areas
Top performer countries
No.
01
Health impacts
Sweden, Cyprus, Slovenia, Germany, Portugal,
Finland, Canada, United Kingdom, Singapore, Brunei
Darussalam, Italy, Australia, Czech Republic, France,
Netherlands,
Ireland,
Switzerland,
Denmark,
Norway, Macedonia etc.
02
Air quality
Uruguay, Palau, Grenada, Mauritius, Barbados,
Antigua and Barbuda, Seychelles, Trinidad and
Tobago, Dominica, Argentina, Algeria, Venezuela,
Tunisia, Morocco etc.
03
Water and sanitation
Denmark, Sweden, Japan, Luxembourg, Australia,
Finland, Singapore, Austria, Qatar, Netherlands,
Belgium, Taiwan, Switzerland, Israel, Norway,
Malta, Germany, Cyprus, United Kingdom, Iceland,
France etc.
44

49. SL
Issue areas
Top performer countries
No.
04
Water resource
Singapore,
Netherlands,
Switzerland,
Germany,
United
Kingdom,
Luxembourg,
Denmark,
Spain, Australia, Italy etc.
05
Agriculture
Singapore, Cameroon, Ecuador, Liberia, Panama,
Trinidad and Tobago, Jamaica, Serbia, Argentina,
Guatemala,
Fiji,
Kyrgyzstan,
Guinea,
Algeria,
Venezuela, Macedonia, Sudan, Kenya, Saudi Arabia,
Gambia etc.
06
Forests
Chile,
Ireland,
Hungary,
Serbia,
Bosnia
and
Herzegovina, Tunisia, New Zealand, South Africa,
Australia,
Montenegro,
Moldova,
Mauritius,
Uruguay, Cuba, Morocco, Georgia, Bulgaria, Iran
etc.
07
Fisheries
Sri Lanka, Timor-Leste, Solomon Island, Seychelles,
Palau, Barbados etc.
08
Biodiversity and habitat
Zambia,
Kiribati,
Darussalam,
Germany,
Botswana,
Slovenia,
Estonia,
Brunei
Switzerland,
Luxembourg, Serbia, Zimbabwe, Belize, Czech
Republic, Central African Republic, United Arab
Emirates, Latvia etc.
09
Climate and energy
Papua New Guinea, Singapore, Albania, Spain,
Azerbaijan, Portugal, Switzerland, Sweden, Jamaica,
Norway, Ireland, Slovakia, Qatar, Nigeria, Denmark
etc.
45

50. CHAPTER 4
Green Economy in Bangladesh
Bangladesh is a small country with a large population. Although the country is gradually
developing, it faces many economic problems. Again, it is one of the worst sufferers of
climate change. In this situation, green economy can play an important role to solve the
economic and environmental crises here. But the green economic initiatives taken here are
insufficient and the country is very slowly advancing towards green economy. This chapter
of this paper will present the following issues:4.1 Probable benefits that Bangladesh can get from green economy.
4.2 Important initiatives towards green economy in Bangladesh
4.3 Sector-wise advancement of green economy in Bangladesh and
4.4 Bangladesh in Environmental Performance Index (EPI) 2014
4.1 Probable benefits that Bangladesh can get from green economy
Besides protecting the environmental degradation, green economy can foster socioeconomic development of Bangladesh in many ways, for example:
Green economy can create numerous job opportunities in Bangladesh through green
agriculture, renewable energy, green banking and proper waste management.

Green economy reduces the carbon emission from the transportation and industrial
sectors. So, if properly adopted, green economy will facilitate carbon credit business
in Bangladesh.

Energy crisis in Bangladesh can be reduced through large scale utilization of
renewable energy which is an integral part of green economy.

If the use of renewable energy becomes popular, government will be able to save
much cost on traditional energy sector.
46

51. 
Green economy can increase food production in Bangladesh through green
agriculture. As a result, the country can achieve food security.

Bangladesh can effectively preserve its natural resources, biodiversity and ecology
through green economy.

Forestation, one of the most important parts of green economy, can increase
forestlands in Bangladesh. These forestlands will directly minimize natural
calamities in this country. As a result, the country will be able to get rid of huge loss
per year.

Forestation and conservation of natural environment will enhance natural beauty
which in turn will enrich tourism industry of Bangladesh.

By protecting pollutions and reducing the use of poisonous chemical items, green
economy can contribute to improve public health.

Water crisis in Bangladesh can be minimized through the adoption of green
economy because this economy puts much importance on sustainable water
management.

Green economy will increase economic activities, create more employment
opportunities and foster economic growth in Bangladesh. Thus, this economic
system will increase the income of people and reduce poverty.

Proper adoption of green economy will ensure social equity, social justice, gender
equity and social welfare because all of these positive social elements fall under the
area of green economy.
4.2 Important initiatives towards green economy in Bangladesh
Although Bangladesh is very slowly transitioning towards green economy, some very
significant initiatives have been taken in this country in the recent years. Some of these
initiatives are as following:
Sustainable & Renewable Energy Development Authority Act (SREDA) has been
approved by the government.

Government has adopted plans to increase the use of renewable energy specially the
solar energy and biogas technology.
47

52. 
Tax exemption has been declared on the commercial production of renewable
energy.

Green banking policy has been circulated by Bangladesh Bank.

Coastal afforestation projects have been initiated.

In the transportation sector, government is trying to increase the use of fuels that
cause less pollution.

CDM projects have been undertaken to produce compost from the urban wastes.
These projects have already got carbon credit.

Project has been undertaken to introduce environment-friendly technologies in the
brick kilns.
4.3 Sector-wise advancement of green economy in Bangladesh
4.3.1 Green banking in Bangladesh
Bangladesh Bank, the central bank of Bangladesh, issued the ‘Policy Guidelines for Green
Banking’ on 27th February, 2011. This was the first formal initiative undertaken to
introduce green banking in Bangladesh. This policy had three phases and all the scheduled
bank were directed to implement those phases within three years.
The policy guided that the implementation of the first phase should not exceed 31 st
December 2011. The components of the first phase were- formulating green banking
policy, incorporating environment risk rating in credit risk management, initiating in-house
environment management, introduction of green finance, creating climate risk funds,
introducing green marketing, promoting on-line banking, supporting employee training,
creating customer awareness disclosing and reporting green banking activities etc.
The contents of the second phase were- sector specific environmental policies, green
strategic planning, setting
up green branches, improving in-house environment
management, formulating environmental risk management plan, undertaking rigorous
programs to create customer awareness and reporting green banking activities etc. The
scheduled banks were directed to implement this phase within 31st December 2012. Finally,
the contents of the third phase were- introducing green banking products and report green
48

53. activities with external verifications. This phase was to be implemented within 31 st
December 2013.
The policy guidelines of Bangladesh Bank have many remarkable outcomes. For instance,
up to 2012
All the scheduled banks have formulated their own green banking policies.

47 banks have introduced green banking unit and green office guide.

Environment risk rating has been performed for 12088 projects of which 11165
projects have been financed.

214 branches and 161 ATM offices are running by solar energy.

38 banks are fully automated.

Out of total 8392 branches of all the scheduled banks, 3445 (41.05%) have online
banking facility.

Taka 90.42 million has been utilized for green marketing training and development.

Taka 703633.21 million has been disbursed for green banking purposes.

Taka 270921.53 million has been disbursed as green finance.

Taka 258.89 million has been used from climate risk fund.

25 banks have been given license for providing mobile financial services of which
16 banks have already started providing these services. These banks are providing
mobile financial services to 3.6 million customers and average transaction volume is
around taka 330 million per day. The number of customers in mobile banking is
growing at the rate of 20% per month.

Most of the banks are providing 24-hour banking services through their ATM
booths. Until 2012, 4738 ATM were in operation.
49

54. The top 10 banks for allocating budget in green finance for the year 2012 were as
following:
Table 4(a)
No.
Bank
Budget
No.
Bank
Budget
allocation
allocation
(Million
(Million
taka)
taka)
01
EXIM Bank
2500
06
Shahjalal Islami Bank
992.50
02
BASIC Bank
1200
07
One Bank
729.56
03
Bank Asia
1200
08
Islami Bank
542.37
04
Social Islami Bank
1040
09
Agrani Bank
500
05
Standard
1000
10
Al-Arafah Islami Bank
500
Chartered
Bank
Source: Annual Report on Green Banking 2012, Bangladesh Bank
4.3.2 Renewable energy in Bangladesh
Bangladesh is a developing country and the demand of energy is increasing at the rate of
10% per year in this country. Traditional energy sources (natural gas, coal, petrol etc.) are
not sufficient to meet this increasing demand. Moreover, the natural gas is likely to be
depleted by the year 2020. In such a condition, the utilization of renewable sources (solar
energy, wind energy, biogas energy, ocean wave energy, tidal power, hydro power,
geothermal energy etc.) can be the best solution for this country.
Traditional renewable energy sources have great importance in Bangladesh. Almost 65% of
the final energy demand of the country is met by the traditional biomass fuels (fire wood,
tree branches, cow dung, bamboo, straw, husk, leaves etc.). Solar thermal energy has been
utilized in many households and industries in this country for different purposes, for
example- open air drying of agricultural products, production of salt from the sea water,
drying of cloths and fishes etc. Again, wind energy is used in sailboats in the rivers. But the
use of modern renewable energy technologies is increasing now-a-days. Solar panels, Solar
Home System (SHS) and biogas plants are the most commonly used modern renewable
technologies in Bangladesh.
50

55. Bangladesh is a subtropical country and 70% of the year sunlight is dropped here. So, we
can easily use this sunlight or solar energy to generate electricity. In fact, we are gradually
advancing in this regard. Many initiatives have been taken to encourage people in using
solar energy. Almost every newly built apartment uses solar panels with grid connection to
get support during the load shedding periods. Many NGOs are working in the rural areas to
provide people with solar panels with low costs. Until the middle of 2013, 14, 29,440 Solar
Home System (SHS) have been in the rural areas of the country.
Biogas is another popular source of renewable energy in Bangladesh. It is produced by the
biological breakdown of organic matters in the absence of oxygen. Organic wastes such as
dead plant and animal material, animal dung and Kitchen waste can be converted into a
gaseous fuel called biogas. Biogas is a form of biofuel. A major component of biogas is 4070% methane (CH4). More than 24000 biogas plants have been installed in different parts
of Bangladesh. Grameen Shakti is one of the largest NGO in the field of biogas. They have
completed 13,500 biogas plants. Recently Seed Bangla Foundation has proposed a 25 KW
Biogas based Power plant in Rajshahi. IDCOL, a government owned investment Company,
fixed a target to set up 37,669 biogas plants in Bangladesh by 2012. The company also
decided to install 25% of theses biogas plants in the northern region. Besides working in
partnership with IDCOL, some organizations have constructed domestic biogas plants with
their own funds. These organizations include Grameen Shakti (3,664 plants), BRAC (3,664
plants of their own) and other private organizations.
Wind power is the conversion of wind energy by wind turbines into a useful form, such as
electricity or mechanical energy. The power is directly proportional to the velocity of wind.
The velocity of wind in the coastal areas, islands, the northern part, high lands and the hills
of Bangladesh is sufficient to run wind turbines. So, the country has a great potential of
generating wind power. Bangladesh Power Development Board (BPDB) has implemented a
0.90MW capacity of the grid connected Wind Energy (GCWE) at the Muhuri Dam areas in
the Feni district in 2004. This is the first GCWE projects in Bangladesh. Again, in 2008,
Bangladesh Power development board (BPDB) implemented a 1000KW capacity wind
battery hybrid power project on the Kutubdia Island in the Cox’s bazaar district. Under this
project, 50 stand-alone wind turbines were installed. Each of those turbines had a capacity
Of 20 KW. The total capacity of all the wind turbines was to be stored in a battery bank.
51

56. Thus generating electricity from wind in the coastal areas can be transmitted to other
regions of the country through the high voltage transmission lines. Very little operation and
maintenance costs will be required during the whole life time of the wind turbines and no
fuel will be required for generating electricity from wind.
The flowing and falling of water is also used as the source of hydro power in Bangladesh.
But this renewable technology has a limited use in this country. At present only, 230 MW
of hydro power is utilized in Karnaphuli, Rangamati Hydro Station. It is the only hydro
power plant operated by Bangladesh Power Development Board. Micro-hydro power plants
and mini-hydro power plants have potentials in the Chittagong and Chittagong Hill Tracts.
In these areas, the assessed capacity of plants is 10 KW to 5 MW.
Ocean wave energy, geothermal energy and tidal power also have great potential in
Bangladesh. But none of these renewable energy sources are utilized in this country.
4.3.3 Green employment or green jobs in Bangladesh
In 2010, a report of International Labor Organization (ILO) estimated that there were 3.5
million core environment-related jobs in Bangladesh. 8, 00,000 of these jobs could be
considered green as they met the decent work standards. Core environment-related jobs and
green jobs accounted for nearly 7% and 2% respectively of total jobs (49.5 million) in the
economy. Climate adaption activities and sustainable construction were mostly among the
identified green jobs. Among the green jobs these category had 62% and 21% share
respectively.
On an average nearly $2 billion is spent on adaption activities each year. These investments
support around 1.7 million jobs in key sectors like agriculture, water, construction, flood
protection, cyclone shelters, water efficient irrigation, early warning system and public
administration.
National survey suggested that 66% of all the construction and infrastructure companies
incorporate green building criteria in their business activities. It was estimated in 20062007 that one million workers were engaged in such construction business that adopt green
52