PAKISTAN can earn huge sums in foreign currency if they create carbon credit certificates and sell them in the international open market.

A carbon credit (also called a carbon offset) is a permit that allows the holder’s entity to emit one tonne of carbon dioxide. These certificates are awarded to companies that have reduced their greenhouse gases below their emission quota – i.e., below one ton of carbon dioxide.

Just imagine how much foreign exchange Pakistan could have earned if it hadn’t delayed its wind-energy projects. These projects were a good opportunity to earn for the country. The price of a carbon credit now is around $2 which used to be $10 last year.

Pakistan has around 12 projects in various sectors like fertiliser, cement, power generation, etc. that have qualified for selling carbon credits.

No study has been carried out to establish how much greenhouse gases are emitted in Pakistan; but it’s estimated that the size of CO2 emissions that can be converted into carbon credits, stands at around 43 million tons. Thus the country stands to gain from the carbon credits initiative. To date only the private sector has come forward to earn carbon credits while many public sector projects can qualify for the same.

Air-Cdre (r) Azfar A Khan

Rawalpindi

Published in Dawn, March 5th, 2016