“The world has just five years to avoid being trapped in a scenario of perilous climate change and extreme weather events,” the International Energy Agency (IEA) warned on Nov 9, 2011. Looking at this statement, there is urgent and massive action required to avert a series of catastrophes. Katrina, Irene, Phet, Goku are just the beginning.
There is enough conclusive evidence and studies, especially the Intergovernmental Panel on Climate Change’s (IPCC) reports over the years that human activities over the past few centuries have caused an unusual increase in the greenhouse gases; namely carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride. These gases have an effect of a greenhouse on the Earth’s atmosphere: a process by which the heat from the sun, which is absorbed by the Earth, is unable to leave the Earth’s atmosphere due to absorption by these gases.
The United Nations (UN), understanding the severity of the situation, formed a sub body in 1992 called “UN Framework Convention on Climate Change” (UNFCC). The main goal of UNFCC is to reduce emissions of greenhouse gases (GHG) in order to combat global warming. Over 190 countries, including Pakistan are members of this body. In its third meeting at Kyoto, Japan, a protocol was signed by most of the developed countries of the world to cut back these greenhouse gases by five per cent of the year 1990 levels by the year 2012. A majority of the countries have ratified this protocol.
This protocol formally recognises that developed countries are principally responsible for the current high levels of GHG emissions, placing a heavier burden on them under the principle of “common but differentiated responsibilities.” Under the treaty, the developed countries must meet their targets primarily through national measures. However, the Kyoto Protocol offers them an additional means of meeting their targets by way of three market-based mechanisms. Emissions trading, Joint Implementation (JI) and Clean Development Mechanism (CDM). As being one of the developing countries, CDM is most relevant to help Pakistan invest in greener technologies.
The developed nations who are legally bound under the Kyoto Protocol are required to maintain and monitor their annual GHG levels and devise measures and penalties to control them to reach the 2012 target. The corporations working in these countries are also required to reduce their emissions over the years. They are required to invest in greener technologies or they can simply purchase a Certified Emission Reducation (CER) point under the CDM mechanism from a developing nation, which would allow them a ticket to emit one extra Kiloton of carbon dioxide or equivalent GHG gas (KtCO2e) while at the same time reducing one KtCO2e somewhere else in the world; thereby maintaining the overall Kyoto target.
The developing nations have a greater opportunity to invest in greener technologies through additional financial incentive of the CDM. A CER is worth between 10–25 Euros, which is awarded for reducing 1 KtCO2e. A small scale project has an annual reduction capacity of a maximum of 60 thousand KtCO2e, generating a revenue of at least 600,000 Euros, roughly PKR 81 Million per annum. To do this the project owner has to prove that the project is “additional” i.e. it would not be otherwise financially feasible to carry out the project without the revenues from CERs.
There are over 3,500 registered CDM projects with nearly 775 Million CERs issued to date. China being the leader with more than 50 per cent projects followed by India and Brazil. Pakistan has only 12 registered CDM projects. Some companies such as ICI, Gul Ahmed, and big players in the cement industry—Lucky, Bestway, Attock, Maple Leaf—including some public sector organisations have availed this opportunity.
The number is very low when compared to the other developing countries. This is mainly due to lack of awareness in the business community, neglect of the government and the strict and time-consuming approval process. There are a few firms operating in Pakistan which offer their services in minimising the complications, reduce the likelihood of rejections, provide expert guidance and help smoothen the process.
It is high time that we start thinking green to have a sustainable future for our upcoming generations.
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