2019 - Powerpoint - Sustainable & EE Brick Production in Bangladesh 2019-2030

ROADMAP
SUSTAINABLE AND
ENERGY EFFICIENT BRICK
PRODUCTION IN
BANGLADESH 2019-2030
• CURRENT STATUS OF THE BRICK
SECTOR
OUTLINE • OPPORTUNITIES FOR CLEANER
PRODUCTION
• BARRIERS TO ACTION
• THE ROADMAP
CURRENT STATUS OF THE BRICK SECTOR
Bricks are an However, currently…
• Production methods are highly polluting,
indispensable and this has proven difficult to regulate
resource for effectively
• Valuable clay topsoil from agricultural land
Bangladesh’s is used as the primary raw material
infrastructure • The sector is growing at 5-10% per year; by
2030 the country may produce 60 billion
development. bricks per year (up from 34 billion today)
Brick sector snapshot
• 7,873 coal fired kilns
• 6 natural gas fired kilns
• 1.3% of GDP (BDT277.5 billion)
• 7 million tonnes of coal
• 21 million tonnes of CO2
• 3.4 billion cubic feet of clay
• 1.6 million workers
• 58% of country’s PM2.5 (i.e., air pollution)
Market share of different traditional technologies
Government of Bangladesh environmental policies and lending schemes, together with donor-
funded projects, have shifted brick production toward less polluting types of kilns:
2006 2018
Major factors influencing change since 2006
• Directives from the Department of Environment

• Brick Manufacturing and Kiln Establishment (Control) Act 2013
• World Bank Clean Development Mechanism project
• UNDP Green Brick project
• World Bank Clean Air and Sustainable Environment project
• ADB’s Financing Brick Kiln Efficiency Improvement project (loan/s)
• ADB’s Supporting Brick Sector Development Program (technical
assistance)
Energy and Emission Trends, 2006-2018
35 CO2 emissions more than doubled

during this time, from 8.7 to 21 million tonnes
30
Millions of Tonnes
25
20
15
10
0
2006 2008 2010 2012 2014 2016 2018
Coal CO2
Air pollution is still a
major problem
“Based on data from 11 continuous air quality
monitoring stations in eight urban areas, the
urban population-weighted annual PM2.5
concentration is estimated at 80ug/m3 for 2013-
2015, more than five times the Bangladeshi
standard and eight
times the World
Health Organization guideline.
The source apportionment undertaken by the
Department of Environment identifies vehicles
and brick kilns among the key sources.”
From →
OPPORTUNITIES FOR CLEANER PRODUCTION
Hybrid Hoffman
and Tunnel Kilns
• Reduced coal usage by 40-50%
• More efficient firing processes (but this requires skillful
design, management and labor)
• Can produce hollow/perforated bricks, which require
less energy and have good insulation properties
• Instead of topsoil, less valuable types of soil are
preferable (i.e., riverbed soil, riverbank soil, soil from
barren/fallow land)
• Occupy less land and have greater production capacity
• Operate year round instead of seasonally
• Better wages and labor standards
• At least $4.2 million USD upfront investment required
for a single kiln
Non-fired bricks
The most sustainable and energy efficient option
• Do not require coal

• Use sand, cement, stones, pebbles and gravel as raw material
• Leadership for local design options through Housing and Building
Research Institute and others (BUET, JICA etc.)
Limitations:
→ limited availability of stone
→ lack of standards for strength/durability etc.
→ market demand and public awareness are low
BARRIERS TO ACTION
Policy/Regulatory Barriers
• Energy efficient kiln enterprises operate under the same
(cumbersome) regulatory and licensing requirements as traditional
kilns, yet are very different kinds of enterprises (i.e., they are larger
scale, use modern/heavy infrastructure and are less polluting)
• Incongruence in the Brick Manufacturing and Kiln Establishment
(Control) Act 2013 between certain clauses and ground reality related
to clay sourcing, raw material and fuel transport, and coal quality
monitoring
• No regulatory policy or standards for non-fired bricks
Finance/Investment Barriers
• High interest rates
• Inadequate knowledge of technical aspects of modern kilns among
loan intermediaries makes technical and financial appraisals of new
brick projects challenging
• Bangladesh Bank’s Green Fund program has a cap of BDT 100 million
for a single borrower; this prevents the program from funding
modern kilns because the required debt financing for these kilns is
higher
• No significant investments in growth of market demand for or
production of non-fired bricks
Knowledge/Capacity Barriers
• Inadequate knowledge of appropriate design specifications and
production optimization for modern/energy efficient kilns
→This has resulted in reduced kiln productivity and efficiency, and
unsatisfactory revenue and loan repayment
→As a result, banks, non-bank financial institutions and financial intermediaries
are discouraged from issuing loans for these projects
• Limited awareness among builders of importance of and options for
purchasing non-fired bricks for construction projects
THE ROADMAP
ROADMAP GOALS
Reduce carbon dioxide (CO2) production by 45%

and air pollution (PM2.5) by 90%
Minimize coal burning
Use renewable raw materials (e.g., sand, river dredge,

fly ash, stones, gravel etc.) instead of clay topsoil
Strategic Objective 1: Strengthen the Policy Environment
• Declare brick production an INDUSTRY to streamline licensing and oversight

• Collect geocodes for all brick kilns to better track and enforce licensing
requirements
• Amend the Brick Manufacturing and Establishment Act 2013 to 1) clarify rules for raw
material sourcing and transport, 2) adjust guidelines for coal quality monitoring, and
3) institute incentives for clean technology
• Update National Building Code to encourage use of sustainable, non-polluting
building materials
• Extend regulations across the value chain to incentivize environmentally friendly
production
Strategic Objective 2: Enhance Energy and Resource
Efficiency
• By 2030, phase out traditional brick kilns that burn coal inefficiently and rely
on clay topsoil
• Develop standards for non-fired brick products to facilitate their market entry
and growth
• Conduct a national mapping of raw materials for fired and non-fired bricks
• Promote and incentivize more environmentally friendly hollow bricks
• Invest in research and development on new raw materials that can replace
clay
Strategic Objective 3: Facilitate Access to Finance and Incentives
• Invest in financing the development of a range of non-fired brick technologies

• Establish credit channels (for +/-$350 million USD) to fund the establishment of new,
energy efficient auto brick kilns, thus increasing their market share
• Provide seed funding to traditional brick kiln owners for livelihood alternatives
• Create financial incentives (e.g., preferential tax and/or interest rate options) for
clean production
Strategic Objective 4: Capacity and Institutional Framework
• Launch a national brickmaking training center

• Increase public awareness of energy efficient and non-fired bricks, including
technology and production options
• Establish a raw material testing laboratory to ensure the availability of
appropriate, investment grade materials for the sector
GOALS
ROAPMAP SNAPSHOT I Reduce carbon dioxide (CO2) and air pollution (PM2.5)
I Minimize coal burning
I Use renewable raw materials instead of agricultural topsoil
IMMEDIATE ACTIONS:
$3.9M USD for • Shut down all Fixed Chimney Kilns by the end of 2020,
and 80% of Zig-Zag kilns by 2025
implementation of the
• Provide a new line of credit for entrepreneurs who
Roadmap’s essential
elements intend to establish new Tunnel kilns $988M USD in credit
• Build investment projects for R&D, raw material for new, modern brick
mapping and market demand generation for making establishments
non-fired bricks (fired and non-fired)
• Begin training programs to build technical expertise in next five years
among brick sector workers (from laborers to senior
design technicians) and lenders
45% reduction in CO from 2 90% reduction in

“Business as Usual” levels PM2.5 generated from
brick production
TECHNOLOGY TRANSITION TIMELINE
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2019
2025
2030
Highly polluting kilns Energy efficient kilns Non-fired bricks

Fixed chimney Hybrid Hoffman Compressed concrete blocks
Zig-Zag Tunnel Aerated autoclaved concrete blocks
Thank You
FS-UNEP Collaborating Centre for Climate & Sustainable Energy Finance
Frankfurt School of Finance & Management gGmbH
Adickesallee 32-34
60322 Frankfurt am Main
Germany
www.fs-unep-centre.org
www.frankfurt-school.de

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ROADMAP

• Directives from the Department of Environment

35 CO2 emissions more than doubled

• Do not require coal

Reduce carbon dioxide (CO2) production by 45%

Minimize coal burning

Use renewable raw materials (e.g., sand, river dredge,

• Declare brick production an INDUSTRY to streamline licensing and oversight

• Invest in financing the development of a range of non-fired brick technologies

• Launch a national brickmaking training center

45% reduction in CO from 2 90% reduction in

Highly polluting kilns Energy efficient kilns Non-fired bricks

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