Carbon credits to be claimed on 34 projects in Pakistan

Pakistan is preparing to claim carbon credits on 34 hydropower projects under the Clean Development Mechanism (CDM) of the United Nations Framework Convention of Climate Change (UNFCCC).

According to sources, the government has already forwarded the cases of 17 major projects to the UNFCCC, validating consultancy reports that these schemes will be helpful in significantly reducing greenhouse gases and hence can qualify for the carbon credits.

The sources said the government had been advised to prepare the projects in such a way that these could ensure part of the required financing through CDM-based carbon credits and attract international investors for those projects which would help reduce greenhouse gases.

The mechanism is an alternative source of funding amid the current financial crunch and shrinking Public Sector Development Programme. “Although carbon credits alone cannot meet financing requirements, they can help bring in significant financial resources for environment-friendly projects,” an official said.

He said the government had signed contracts with three companies for consultancy services for procurement of CDM. The Carbon Services and Perenia have been awarded consultancy services for six projects each and the DDS for five.

Six major projects for which consideration forms were uploaded on the UNFCCC website in December last year are 1,100MW Kohala hydropower project; 7,100MW Bunji project; 2,700MW Dasu project; 740MW Munda project, 4,500MW Diamer Bhasha Dam project and 969MW Neelum Jhelum project.

Medium-sized projects with their capacities ranging between 75MW and 130MW posted on the website are Golen Gol, Allai Khawar, Khan Khwar, Duber Khwar, Jinnah hydropower project, Kurram Tangi Dam, Phander hydro, Keyal Khwar and Gomal Zam Dam.

Contracts for 17 other small dams and power projects will soon be signed with consultants to claim carbon credits. Carbon credit in financial terms is an award that is given to greenhouse gas reduction projects.

In 2008, India earned carbon credits on two projects Pakistan has been disputing under the Indus Waters Treaty.

Since then, the government has set up a Designated National Authority in the Planning Commission in accordance with a UNFCCC requirement to route projects of energy, waste management, transportation, industrial processes, land use, forestry, agriculture and livestock.

An official said the government had asked some agencies to monitor the grant of carbon credit awards to projects India and Afghanistan may want to build on the Indus river system and its tributaries.

source: www.dawn.com/

Carbon Expert provides access for our clients to the carbon credit trading market in an innovative and forward thinking way, offering OTC trading of VERs via its network of professional carbon brokers. www.carbon-expert.com