January 31, 2006	Tuesday	Muharram 1, 1427

Please Visit our Sponsor (Ads open in separate window).

ISLAMABAD, Jan 30: The ministry of environment on Monday unveiled a national operational strategy for Clean Development Mechanism (CDM) under which a Designated National Authority (DNA) will be established.

The strategy provides broad policy framework for initiating CDM projects through public and private sector local initiatives independently or in cooperation with foreign investors, federal and state environment ministers Maj (retired) Tahir Iqbal and Malik Amin Aslam, respectively, told the press at the ministry.

These CDM projects would be based on the principle of introducing environment-friendly technologies for achieving sustainable development in developing countries that could ultimately contribute to the objectives of the United Nations Framework Convention for Climate Change, and reduce the emission of greenhouse gases.

With the approval of the CDM strategy, the country would allow unilateral, bilateral and multilateral projects in various environment-friendly sectors. These are: renewable energy, energy conservation and fossil-fuelled cogeneration; land use, land use change and forestry, soil conservation, watershed maintenance and sustainable forest/rangeland management including afforestation; agriculture and livestock practices; waste management such as landfills, solid waste management, recycling, livestock wastes; mass transit systems, cleaner engines, CNG conversions and industrial processes like cement, paper, fertiliser, sugar and industries, etc.

Other sectors may be considered by the proposed authority on the request of the local or foreign investors provided they are in line with the objective of the CDM.

To be eligible for national approval under the CDM, the project in the above listed areas must meet the national sustainable development criteria, they said.

CDM is now becoming an attractive business opportunity and an increasing number of public and private companies are entering the market.

According to a World Bank study, global market of $30 to $50 billion per annum can be leveraged through the CDM projects. India is already in the market where about 50 CDM projects are now in the implementation stage and more than 100 such projects are in the pipeline.

The federal minister said due to the late ratification of the Kyota Protocol, which the government did only last year, the CDM strategy was delayed.

Both private and corporate sectors are encouraged to come forward and invest in this win-win activity by initiating CDM projects independently or in cooperation with some foreign countries, he added.

Depending upon its scale, an average CDM project could generate revenue worth thousands of dollars over its life span. Investors may also get additional benefits from the CDM projects.

The huge cost of municipal corporations for collection and management of solid wastes in large cities can be drastically reduced through CDM projects, whereas at the same time, it could generate additional revenues for the municipal corporations, the ministers said.

Substantial benefits could come through CDM projects in forestry, land use, agriculture and livestock practices. These CDM projects could also bring overall benefits to the nation through increased foreign exchange earnings, increased energy supplies, transfer of improved cleaner technologies from the developed countries, increased job opportunities, conservation of natural resources and improved environment for the local communities.