ISLAMABAD, Feb 25: Federal Minister for Environment Tahir Iqbal on Saturday stressed the formulation of clean development mechanism (CDM) to meet the increasing demand of energy at the lowest possible prices affordable by the common man.

“The World Bank has committed to giving $600,000 to the ministry of environment for developing and implementing projects under the CDM which would enable us to introduce environment- friendly and sustainable technologies in the alternative energy wash management and transportation sectors.”

The minister was speaking at the inaugural session of a workshop on “Carbon credits potential for investors in alternate energy” jointly organized by the ministry of environment and the Alternate Energy Development Board here on Saturday.

He said CDM offered multiple environmental, economic and technological benefits for the developing countries like Pakistan and the government was focussing on building the capacity in this field.

He said investors were being encouraged to design environment- friendly projects and the projects fulfilling the criteria for CDM would not only get tax exemption but would also be awarded full carbon credits which they could sell in the international market.

Mr Iqbal said CDM had been established under the Kyoto Protocol and could benefit developing countries. It aimed at assisting the developing countries to implement project activities that reduced greenhouse gas emissions in return for generating carbon credits.

The CDM has two objectives: to assist a developing country in achieving sustainable development, thereby contributing to the ultimate objective of the convention, and to assist the country in achieving compliance with part of their quantified emission limitation and reduction commitments under Article 3.

The participants said clean development mechanism established a link between local and global environmental issues. It provided means for effective financing for sustainable development within the country through provision of debt-free resources. A number of public and private sector investors were already entering the business.

The participants were informed that global rates of Certified Emission Reduction of carbon units were $1.3 to $6.1 tons of Co2 equivalent. Carbon credits were a new source of revenue for developing countries that could help improve rates of returns for project investments in various sectors for achieving sustainable development targets.

Pakistan signed the Kyoto Protocol on 11 January, 2006, and since then the government has undertaken all necessary measures to facilitate and encourage partners to invest in the CDM project, said the minister.

Speaking on the occasion, Secretary Alternate Energy Development Board Brig Dr Nasim A. Khan said 700 villages would be supplied with solar energy in one year.

“Four villages are already running on solar energy. Eight are running on micro-wind turbines and another eight villages will also be provided with energy using similar means this year.