Infrastructure Development Company Limited (IDCOL), a government owned non-bank financial institution and country’s pioneer in off-grid renewable energy financing, receives the first ever CDM fund in Bangladesh under the United Nations Framework Convention on Climate Change (UNFCC).
Recently, UNFCCC have issued 18,373 Certified Emission Reductions (CER) for IDCOL Solar Home System (SHS) Program under an Emission Reduction Purchase Agreement signed by IDCOL with the World Bank (acting as the Trustee for Danish Carbon Fund). These CERs have been issued for the reporting period July 1, 2012 to December 31, 2012. The total CER contracted under the ERPA is 444,922 at EU9 per CER. The remaining CERs are expected to be issued in subsequent phases. IDCOL will receive an amount of EUR 165,357 for the CERs already issued, which will be shared between IDCOL and its partner organizations at a ratio of 25:75.
Earlier, the IDCOL’s project has been designed to reduce atmospheric carbon emissions by overcoming market barriers for solar energy development, including high implementation costs. The project uses photovoltaic applications to produce electricity and thus reduces greenhouse gas emissions by displacing conventionally used energy sources for electrification, such as kerosene and diesel.