CDM Status in PakistanCDM Status in Pakistan

Dr. Syed Sajidin HussainClean Development Mechanism Cell

Ministry of Environment, Government of Pakistan

ssajidin2004@yahoo.com; focalpoint@moerc.gov.pk 20 October 2005

CDM ~ Activities StatusCDM ~ Activities Status

Pakistan signed Kyoto Protocol (Jan 2005)

Ministry of Environment ~ DNA

Established CDM Cell in MOE (Aug 2005)

National CDM Strategy (Draft for approval)

National CDM Authority/DNA National CDM Authority/DNA

Project Proponent

CDM Steering Committee

DNA/CDM Secretariat

Technical Committees

National and International

Stakeholders

PM Committee on Climate Change

Policy Formulation and

Implementation

Operational-(One

Window

Office)

Facilitation and

Promotion

CDM SecretariatCDM SecretariatComposition:Composition:

• Headed by Joint Secretary (IC), MoEHeaded by Joint Secretary (IC), MoE

• CDM Cell ~ CDM Cell ~ three Experts (2 in place)

Syed Sajidin Hussain (Incharge)(cdmcellpakistan@gmail.com)

Two CDM Support Experts

Functions:Functions:• Private sector facilitation (project developers, project Private sector facilitation (project developers, project

monitoring and certification, awareness/capacity monitoring and certification, awareness/capacity building)building)

• National focal point for the CDM program National focal point for the CDM program

• Secretariat to the National CDM Steering Committee and Secretariat to the National CDM Steering Committee and CDM Technical CommitteesCDM Technical Committees

High Level CommitteesHigh Level Committees

PM Committee on Climate ChangePM Committee on Climate Change Policy and Review ForumPolicy and Review Forum

• Composition Composition Federal Minister for EnvironmentFederal Minister for Environment Minister for Food, Agriculture and LivestockMinister for Food, Agriculture and Livestock Minister for Science and TechnologyMinister for Science and Technology Minister for Water and PowerMinister for Water and Power Minister of State for EnvironmentMinister of State for Environment Deputy Chairman Planning CommissionDeputy Chairman Planning Commission Dr. Ishfaq Ahmad, Special Advisor to PMDr. Ishfaq Ahmad, Special Advisor to PM

High Level CommitteesHigh Level CommitteesCDM Steering CommitteeCDM Steering Committee (To meet at least quarterly) (To meet at least quarterly)

• Provide necessary Provide necessary policy advice and guidancepolicy advice and guidance to the CDM Technical Committees and to the CDM Technical Committees and CDM Secretariat CDM Secretariat

• Review the implementation Review the implementation progress progress of CDM projectsof CDM projects• Ensure Ensure inter-ministerial coordinationinter-ministerial coordination for effective management of CDM process in for effective management of CDM process in

Pakistan Pakistan

• Composition Composition Secretary, Ministry of Environment - ChairSecretary, Ministry of Environment - Chair Additional Secretary, Planning and Development DivisionAdditional Secretary, Planning and Development Division Additional Secretary, Ministry of FinanceAdditional Secretary, Ministry of Finance Additional Secretary, Ministry of Petroleum & Mineral Additional Secretary, Ministry of Petroleum & Mineral

ResourcesResources Additional Secretary, Ministry of Food and AgricultureAdditional Secretary, Ministry of Food and Agriculture Additional Secretary, Ministry of Science and TechnologyAdditional Secretary, Ministry of Science and Technology Additional Secretary, Ministry of Foreign AffairsAdditional Secretary, Ministry of Foreign Affairs Additional Secretary, Ministry of IndustriesAdditional Secretary, Ministry of Industries Additional Secretary, Ministry of CommerceAdditional Secretary, Ministry of Commerce Additional Secretary, Ministry of Water and PowerAdditional Secretary, Ministry of Water and Power Director General, Board of InvestmentDirector General, Board of Investment Chairman, Alternate Energy Development BoardChairman, Alternate Energy Development Board Managing Director, ENERCONManaging Director, ENERCON Additional Chief Secretaries, Provinces/AJK/Northern Areas Additional Chief Secretaries, Provinces/AJK/Northern Areas President, Federation of Pakistan Chambers of Commerce and President, Federation of Pakistan Chambers of Commerce and

IndustryIndustry One Representative from NGOs One Representative from NGOs

CDM Technical CommitteesCDM Technical Committees Three technical committeesThree technical committees (to meet on need basis) (to meet on need basis)

• Technical Committee on Energy Efficiency/ Renewable EnergyTechnical Committee on Energy Efficiency/ Renewable Energy

• Technical Committee on Waste ManagementTechnical Committee on Waste Management

• Technical Committee on Agriculture, Forestry and LivestockTechnical Committee on Agriculture, Forestry and Livestock

Additional committees may be notified if neededAdditional committees may be notified if needed

FunctionsFunctions

• Promote and advise on CDM projectsPromote and advise on CDM projects

• Assist project sponsors in developing CDM projectsAssist project sponsors in developing CDM projects

Project Approval CriteriaProject Approval Criteria

Consistency with the national laws and sustainable Consistency with the national laws and sustainable development policies, strategies and plans development policies, strategies and plans

Environmental criteria Environmental criteria

Social criteria Social criteria

Economic criteria Economic criteria

Technological criteriaTechnological criteria

CDM projects Priority Areas CDM projects Priority Areas

Unilateral, bilateral and multilateral CDM projects allowed Unilateral, bilateral and multilateral CDM projects allowed in the following areas: in the following areas:

• Energy (renewable energy/alternate energy, energy efficiency/ Energy (renewable energy/alternate energy, energy efficiency/ energy conservation, and fossil- fuel cogenerationenergy conservation, and fossil- fuel cogeneration

• Land use, Land use Change and Forestry (biodiversity Land use, Land use Change and Forestry (biodiversity protection, soil conservation, watershed maintenance, protection, soil conservation, watershed maintenance, sustainable forest management, afforestation and sustainable forest management, afforestation and reforestation)reforestation)

• Agricultural and livestock practicesAgricultural and livestock practices

• Waste Management (landfills, solid waste management, Waste Management (landfills, solid waste management, recycling)recycling)

• Transportation (alternative fuel vehicles, mass transit systems, Transportation (alternative fuel vehicles, mass transit systems, cleaner engines, CNG)cleaner engines, CNG)

• Industrial processes Industrial processes

Tax and Credit Sharing PoliciesTax and Credit Sharing Policies

Credits to be awarded fully to the project sponsorsCredits to be awarded fully to the project sponsors

No income tax or duty on transfer/ sale of CDM No income tax or duty on transfer/ sale of CDM

emissions creditsemissions credits

Banks and other financial institutions encouraged to Banks and other financial institutions encouraged to

provide special incentives to the investors provide special incentives to the investors

Project Approval Project Approval

• Project submission by the ProponentProject submission by the Proponent

• Qualitative assessment against the National CDM Qualitative assessment against the National CDM

CriteriaCriteria

• Letter of approval issued within one monthLetter of approval issued within one month

Pakistan’s PotentialPakistan’s Potential

0

50

100

150

200

250

300

350

400

MTCO2eq Million $

Annual Average Emmission Reduction Potential in Pakistan (2006 - 2012 period)

MTCO2eq Million $

Global CDM Market Potential:

(37.8 – 264 MTCO2eq/year)(37.8 – 264 MTCO2eq/year)

CDM emmission reduction potentail cumulative during period 2006-12 (MCO2eq)

Energy70%

Agriculture14%

Waste5%

Industrail processes

5%

Forestry & Land use change

6%

Issues/ConstraintsIssues/Constraints

Lack of Awareness/Capacity at all Lack of Awareness/Capacity at all levelslevels

• Introductory Workshop on Carbon Introductory Workshop on Carbon Finance (November 14-15, 2005) – MOE Finance (November 14-15, 2005) – MOE and The World Bank.and The World Bank.

• Many more workshops need to be Many more workshops need to be planned to educate private sector planned to educate private sector investors in project development.investors in project development.

THANK YOUTHANK YOU