Yes. Projects in Bangladesh have generated credits under international programmes for many years, including clean development mechanism activities in the past and voluntary standards today. Access to international carbon markets depends on meeting the relevant standard's rules, holding the necessary local approvals, having clear rights over the emission reductions and, for Article 6 transfers, obtaining host-country authorisation. Sale revenue must also be received through proper banking channels. We help developers check that each of these elements is in place, because buyers increasingly ask detailed questions about legal title, approvals and community consent before they sign any agreement.

Voluntary carbon markets allow companies and individuals to buy credits issued under independent standards for their own voluntary claims, such as offsetting emissions. Article 6 of the Paris Agreement sets out cooperative approaches between countries, including bilateral transfers and a centralised mechanism under United Nations supervision. Credits used towards another country's target, or for certain compliance purposes, generally need host-country authorisation and a corresponding adjustment, so Bangladesh would not count the same reduction towards its own target. Authorised credits can command higher prices but carry more regulatory steps and approval risk for the seller.

Bangladesh law does not contain a comprehensive statutory rule on ownership of carbon rights, so the answer depends on the type of project, land and forest laws, the rights of landholders and communities, and the contracts between the parties. Where state land, forests or coastal areas are involved, government consent or a formal agreement may be needed. Developers should document carbon rights and benefit-sharing clearly with landholders and partners before registering a project. We review these arrangements and advise on how to strengthen them, because weak title is one of the main concerns for buyers in carbon markets.

It depends on the pathway. Many voluntary market projects have operated with sector approvals and letters of support rather than a specific credit-sale approval, but policy is developing as Bangladesh implements Article 6 and considers how to protect its own climate targets. For authorised transfers under Article 6, government authorisation is essential. Environmental clearance, foreign investment registration and sector permits may also be required for the underlying activity. Because the framework is changing, we review current policy for each transaction and build conditions and allocation of authorisation risk into the agreements.

A sound agreement covers the project and credit type, volumes and delivery schedule, price and any adjustment mechanism, registry details and transfer steps, and the seller's warranties on title, approvals and integrity. It should also address what happens if credits are not issued or delivered, if authorisation is withdrawn, if a reversal occurs or if rules in carbon markets change. Termination rights, limits on liability, confidentiality, claims language and dispute resolution are also important. We negotiate these terms for both buyers and sellers, focusing on the risks that matter most in Bangladesh.

The tax treatment of carbon credit income in Bangladesh is not addressed by a detailed specific regime, so it is generally analysed under ordinary income tax and VAT principles, taking into account the nature of the seller, the structure of the transaction and any applicable exemptions or treaty relief. Payments to non-residents may attract withholding tax. Under the Finance Act 2026, withholding on interest paid to non-residents is 10%. Because the treatment can vary, we work with tax advisers to review the structure before contracts are signed and to document positions clearly. Rules can change with each budget.

Yes. Foreign companies can invest in carbon projects through a Bangladeshi subsidiary, a joint venture with local partners, a partnership with an NGO or by purchasing credits under offtake agreements. Investment registration and incentives are now handled by Invest Bangladesh, which took over the functions of BIDA, BEZA and the PPP Authority on 23 August 2026. Repatriation of profits and payments must follow foreign exchange rules. NGOs receiving foreign funds face separate approval requirements. We advise on the structure best suited to the project and the investor's role in carbon markets.

Buyers reduce risk through proper due diligence on the project, the developer and the land and community arrangements, together with careful drafting. Useful protections include conditions precedent on approvals and registration, staged payments linked to delivery, make-good obligations for shortfalls or reversals, warranties on title and integrity, information rights and clear termination remedies. Buyers should also check whether credits have been sold before and whether Article 6 authorisation is needed. We prepare focused due diligence reports and negotiate protections that reflect how carbon markets projects actually operate in Bangladesh.