Bangladesh has strengthened its pathway to participating in international carbon markets with the signing of a Host Country Agreement (HCA) between the Government of Bangladesh and the World Bank, as Trustee of the Carbon Initiative for Development (Ci-Dev).

The HCA follows the US$16.76 million Emission Reduction Purchase Agreement (ERPA) signed in January 2025 with the Bangladesh Infrastructure Development Company Limited (IDCOL). The agreement confirms the government’s authorization for the program supported under the ERPA and lays out how Bangladesh will apply its Standardized Crediting Framework (SCF) — a country-owned crediting mechanism developed with Ci-Dev support to help countries access carbon markets under the Paris Agreement.

With the SCF now operational, Bangladesh is advancing the establishment of its national Article 6 systems and building the foundations for future market engagement.

The Solar Home Systems program covered by the ERPA recently completed third-party verification, marking the first pilot of a virtual verification approach within the Ci-Dev portfolio. Verified emission reductions generated from 3.3 million Solar Home Systems will be purchased through the ERPA, with results-based payments expected to be fully disbursed in early 2026.

Bangladesh’s progress demonstrates how country-owned crediting frameworks, supported by targeted technical assistance, can help countries prepare for high-integrity participation in international carbon markets.