Bangladesh - Lessons Learned from the Standardized Crediting Framework

Overview & Synopsis

The Standardized Crediting Framework (SCF), developed under the Carbon Initiative for Development (Ci-Dev) by the World Bank, is a tool that provides a streamlined and transparent approach to issuing carbon credits. After the Clean Development Mechanism (CDM) era (2000–2020), global carbon market mechanisms have continued to evolve under Article 6 of the Paris Agreement, bringing together the voluntary system (based on commercial carbon standards) and the regulatory system (based on the United Nations Framework Convention on Climate Change [UNFCCC]-recognized crediting mechanisms). Many Ci-Dev programs in partner countries originally started under the CDM, with the perspective of long-term financing through the emission of carbon credits over a long period (20 to 30 years). However, with the Paris Agreement entering into force and the CDM’s crediting period effectively ending at the end of 2020, these projects could no longer issue credits. While it will have been possible to move to commercial carbon standards, the World Bank took this opportunity to build the client countries’ institutional capacities and help them establish a transitional tool that enables the issuance of carbon credits for the existing programs. For that purpose, and in close collaboration with Ci-Dev partner countries, the World Bank developed the SCF. This report summarizes the benefits from having a nation al crediting system set up in Bangladesh, following the SCF approach and tools, as well as the lessons learned from this experience and an outlook on forward-looking actions