Pakistan yet to benefit from carbon market
August 03, 2010
Islamabad
With developing countries taking advantage of increasing opportunities Pakistan is yet to benefit from carbon market that can greatly help improve environmental conditions and provide a major boost to the national economy.
The latest market data showed that the carbon market has so far increased up to 5 billion dollars and it is projected to exceed manifold after participation of the United States in the carbon trading.
The government has set up a National Authority for Clean Development Mechanism (CDM) at the environment ministry with an aim to raise awareness and enhance participation by the Pakistani companies in CDM projects. Ministry’s Director General Javed Ali Khan told ‘The News’ that more than 300 million carbon credits, each representing the equivalent of one metric ton of carbon dioxide, have so far been created and these credits are traded on commodities markets.
He said the participation of Pakistan in the carbon market would help deal with energy and climate crises and provide opportunities to the western companies who have been trying to meet their target of reducing carbon emissions.
Javed said seven CDM projects presented by Pakistan have so far been approved and 25 projects are under consideration while proposals for more 125 projects are being prepared by experts in consultation with stakeholders. According to the United Nations Environment Programme, Kyoto Protocol is an agreement under which industrialised countries will reduce their collective emissions of greenhouse gases (GHG) by 5.2% compared to the year 1990. So far, 183 countries have ratified the Kyoto Protocol.
The industrialised countries are legally bound to reduce the emissions of 4 GHG (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride) and 2 groups of gases (hydrofluorocarbons and perflurocarbons). The reduction of GHG will be done over the 2008 to 2012 period.
A Pakistani company, Pak-Arab Fertilizers (Pvt.) Ltd., Multan , has earned 13 million dollars through the sale of Certified Emission Reductions (CERs) in 2008, the first year of the launch of CDM. The total cost of the project is 18 million dollars.
India is the first country that has secured a UN certificate for cutting over 90,000 tons of carbon dioxide release into the atmosphere. The Indian government has approved more than 1,455 CDM projects that can potentially make billions of dollars in export earnings.
Dr Arshad Muhammad Khan, Executive Director of the Global Change Impact Studies Centre (GCISC) said there is a tremendous potential of CDM in sugar industry in the processes like ethanol production, process and boiler efficiency, co-generation, composting, waste heat recovery, generator replacement and fuel switching, which can be tapped to gain additional revenues by generating carbon credit.
With developing countries taking advantage of increasing opportunities Pakistan is yet to benefit from carbon market that can greatly help improve environmental conditions and provide a major boost to the national economy.
The latest market data showed that the carbon market has so far increased up to 5 billion dollars and it is projected to exceed manifold after participation of the United States in the carbon trading.
The government has set up a National Authority for Clean Development Mechanism (CDM) at the environment ministry with an aim to raise awareness and enhance participation by the Pakistani companies in CDM projects. Ministry’s Director General Javed Ali Khan told ‘The News’ that more than 300 million carbon credits, each representing the equivalent of one metric ton of carbon dioxide, have so far been created and these credits are traded on commodities markets.
He said the participation of Pakistan in the carbon market would help deal with energy and climate crises and provide opportunities to the western companies who have been trying to meet their target of reducing carbon emissions.
Javed said seven CDM projects presented by Pakistan have so far been approved and 25 projects are under consideration while proposals for more 125 projects are being prepared by experts in consultation with stakeholders. According to the United Nations Environment Programme, Kyoto Protocol is an agreement under which industrialised countries will reduce their collective emissions of greenhouse gases (GHG) by 5.2% compared to the year 1990. So far, 183 countries have ratified the Kyoto Protocol.
The industrialised countries are legally bound to reduce the emissions of 4 GHG (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride) and 2 groups of gases (hydrofluorocarbons and perflurocarbons). The reduction of GHG will be done over the 2008 to 2012 period.
A Pakistani company, Pak-Arab Fertilizers (Pvt.) Ltd., Multan , has earned 13 million dollars through the sale of Certified Emission Reductions (CERs) in 2008, the first year of the launch of CDM. The total cost of the project is 18 million dollars.
India is the first country that has secured a UN certificate for cutting over 90,000 tons of carbon dioxide release into the atmosphere. The Indian government has approved more than 1,455 CDM projects that can potentially make billions of dollars in export earnings.
Dr Arshad Muhammad Khan, Executive Director of the Global Change Impact Studies Centre (GCISC) said there is a tremendous potential of CDM in sugar industry in the processes like ethanol production, process and boiler efficiency, co-generation, composting, waste heat recovery, generator replacement and fuel switching, which can be tapped to gain additional revenues by generating carbon credit.
