The potential for CDM financing in the tannery industry of Bangladesh

The tannery industry is one of the more energy intensive industries, creating atmospheric greenhouse gas emissions, in addition to water pollution and solid waste generation. The solid waste and the waste water contain animal protein and fat that can create the greenhouse gas methane in the process of anaerobic decomposition. However, if this solid and liquid waste is used in the process of biogas production to generate energy, there may be the reduction of atmospheric emission of methane, as well as a reduction of the use of fossil fuels to generate energy. At the present time, the tannery waste is disposed without treatment, as the installation of waste treatment facilities or biogas plants is expensive and not cost effective for the tannery industry. However, if the waste transformation plants are financed by CDM credits, they may become financially feasible. This paper reviews the ways that the tannery industry in Bangladesh can attract CDM financing, applying a number of emission reduction methodologies prescribed under the CDM initiative.