Fossil fuel megaprojects drive displacement in Bangladesh | News | Eco-Business | Asia Pacific

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.