The Bangladesh government has adopted a master plan to develop Maheshkhali sub-district through three industrial zones: An energy hub with 13 gigawatts of LNG and coal power plants, a deep-sea port with container and multipurpose terminals, and a special economic zone.
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Fossil fuel megaprojects drive displacement in Bangladesh
Abatify Summary
Nature & Climate Perspective
**The rapid industrialization of Maheshkhali through 13 GW of fossil fuel projects directly threatens highly vulnerable coastal ecosystems and destroys critical regional carbon sinks. **
- Construction of the deep-sea port and special economic zone leads to direct habitat fragmentation, severely degrading local Blue Carbon coastal ecosystems and mangrove forests.
- The massive scale of coal and LNG development actively undermines LULUCF goals by converting ecologically sensitive land into high-emissions industrial zones.
- Localized pollution and ecosystem degradation reduce the natural adaptive capacity of the coastline, increasing vulnerability to climate-induced sea-level rise and storm surges.
Market & Policy Outlook
**This fossil fuel lock-in directly conflicts with international transition pathways, undermining ICVCM alignment and restricting the region's integration into global carbon markets. **
- The addition of 13 GW of unabated fossil power violates the transition integrity core of the ICVCM Core Carbon Principles (CCPs), neutralizing the potential for high-integrity carbon credit issuance.
- Corporations operating within the new special economic zone will face severe Scope 3 compliance challenges, rendering them incompatible with science-based net-zero targets like those of the SBTi.
- Investing heavily in coal and LNG assets risks creating massive stranded assets, reducing the country's capability to participate in Article 6.2 or Article 6.4 ITMO transactions due to a high grid emission factor.
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