Overview of the KSP Private Proposal Project
The KSP (Knowledge Sharing Program) is a development cooperation program led by Korea's Ministry of Economy and Finance to share Korea's economic development experience with developing countries. Under the 2025 KSP private proposal track, private companies and institutions may directly submit project concepts, and one of the proposals focuses on restoring carbon sink forests in Bangladesh.
Bangladesh is widely recognized as one of the countries most vulnerable to climate change, facing deterioration of the Sundarbans mangrove forest, coastal erosion, and increasingly frequent flooding. Restoring carbon sink forests is positioned as a dual-purpose project that can support climate adaptation while also creating access to carbon credit revenue. A pre-feasibility study is therefore needed to test the project's economic rationale and implementation viability in advance.
Project Background: Bangladesh's Forest and Climate Conditions
Forest cover in Bangladesh accounts for only about 11% of national territory, far below the global average of roughly 31%. The Sundarbans, the world's largest mangrove forest spanning 6,017 square kilometers and designated as a UNESCO World Heritage site, is under growing pressure from sea-level rise, illegal logging, and the expansion of shrimp farms. It is estimated to be shrinking by about 1.3% annually. Mangroves absorb three to five times more carbon than conventional forests, making them especially valuable as carbon sink assets.
| Item | Current Status | Target | Note | Source |
|---|---|---|---|---|
| Forest Cover | 11% of land area | 20% by 2030 | NDC target | MoEFCC |
| Sundarbans | 6,017 km2 | Conserve + expand | UNESCO heritage | IUCN |
| Mangrove Loss | 1.3% per year | 0% | Urgent conservation need | FAO |
| CO2 Emissions | 100 MtCO2/year | 22% reduction | NDC target | UNFCCC |
| Carbon Absorption | 3-5x mangrove gain | Expand | vs. general forests | Research |
| REDD+ Membership | Since 2010 | Implementation stage | Linked to carbon market | UN-REDD |
| Sea-Level Rise | 3-5 mm/year | - | Threat to mangroves | IPCC |
| Reforestation Need | 50,000 ha+ | By 2030 | Coastal protection forest | MoEFCC |
Core Findings from the Pre-Feasibility Study
The pre-feasibility study evaluates the project across economic, technical, environmental-social, and institutional-legal dimensions. Its economic case rests on a revenue model tied to REDD+, which allows carbon credits to be generated and traded by preventing forest degradation and restoring forest capacity. Restoring one hectare of mangrove forest is estimated to absorb 5-15 tons of CO2 annually, implying total absorption of more than 1 million tons over a 20-year horizon. Applying a carbon price of $5-15 per ton suggests an estimated economic internal rate of return of 12-18%.
Pathways for Korean Companies and Institutions to Participate
The 2025 KSP private proposal on carbon sink forest restoration represents a high-value cooperation agenda where Bangladesh's climate response needs and Korea's ODA strategy intersect. Restoring the Sundarbans mangrove ecosystem offers environmental, economic, and social benefits at the same time, while the REDD+ carbon credit model provides a plausible mechanism for long-term project sustainability. If the project can establish a pipeline from KSP pre-feasibility work to a full EDCF program, and combine Korea's restoration expertise, corporate carbon investment, and digital monitoring technologies, it can strengthen Korea's strategic position in Bangladesh's climate cooperation landscape.