Pakistan may get FDI worth $1.7bn from 120 CDM projects: minister

[Hyde]

Pakistan may get FDI worth $1.7bn from 120 CDM projects: minister​

Tuesday, June 29, 2010

KARACHI: Pakistan is likely to get foreign direct investment worth 1.715 billion dollars from the 120 clean development mechanism (CDM) projects that are in the pipeline, said Federal Minister for Environment Hameedullah Jan Afridi on Monday.

He was speaking at a seminar to introduce the business opportunity of Carbon Finance through CDM of Kyoto Protocol under the United Nations Framework Convention on Climate Change (UNFCCC).

These projects will help in green house gasses (GHG) reduction of 28 million tons CO2 equivalent a year, he said.Pakistan has so far approved 25 CDM projects that will bring in FDI of around 742 million dollars and help in GHG reduction of 4 million tons CO2 equivalent a year, Afridi said.

“The CDM Executive Board has registered six projects (out of the 25) which will generate 195 million dollars worth of foreign direct investment (FDI),” Afridi said.Foreign companies invest in GHG emission control in developing nations and swap these ‘carbon credits’ in home countries where this practice is too expensive and proves uneconomical, Afridi explained.

Carbon Finance through CDM was an attractive business opportunity and an increasing number of governments and private companies are now entering the market, he said.Potential for CDM projects exists in energy efficiency, alternate and renewable energy production, cleaner technologies in industrial processes, and improvements in agriculture and forestry practices, Afridi said.

The Ministry of Environment and Korean Trade and Investment Agency (KORTA) had jointly organised the seminar at a local hotel.The CDM under the Kyoto Protocol of 1997 has been particularly introduced for the developing countries for initiating sustainable development projects in return for Carbon Credits that can be sold to developed countries.

“The business is expected to grow to billions of dollars,” Afridi said.

Pakistan offers technical and financial opportunities to attract international investors in the carbon finance, he said.

He appreciated the Korean companies’ interest in CDM project activities.Korean Consul General Lee In-ki highlighted the aim and objective of the seminar. He gave background of KORTA and briefly described the profile of Korean companies interested to invest in CDM projects in Pakistan.

 

[Hyde]

CDM projects: 'Pakistan only country to allow free CDM projects'​

KARACHI (June 29 2010): Pakistan has emerged as the only country in the region that allows fees-free investment approvals to Clean Development Mechanism (CDM) projects, said Federal Minister for Environment, Hameedullah Jan Afridi here on Monday. He was speaking with Korean investors and Pakistani industrialists at "Korea-Pakistan Green Business Forum" session, organised by Ministry of Foreign Affairs and Trade, Ministry of Environment and Korean Trade and Investment Agency (KOTRA).

Afridi said the government, as a matter of policy, is keen to promote "Carbon Finance Schemes" as the country holds tremendous potential to avail the opportunity and cut its dependence, to almost zero, on foreign loans. CDM can help a country like Pakistan benefit from Carbon Finance Schemes (CBF), he said, adding it needs to be better understood by the private sector as the government is keen to focus on overall development.

Unlike China and India, Pakistan introduced CDM in 2010. "However, in a short span of two years, we have approved 25 CDM projects out of which seven are registered with CDM Executive Board, while another 120 projects are at different developmental stages," he enlightened.

As for direct benefit of approved CDM schemes, he said these have led to a direct investment worth US $742 million and reduction in the emission of four million tons of carbon. Addressing the Korean participants, he said Pakistani government is fully conscious that the countrymen have yet to be trained in the CDM technology. "It was our friend China that made us conscious of it and now we are looking around to gain maximum technical know-how and make optimum use of it," he said. The minister, on the occasion, also responded to queries raised by participants including availability of relevant data and infrastructure.

He said Pakistan has a certain criteria to assess CDM projects and is fully conscious that these are not only meant to convert sources of energy, but also for conservation of energy. To a question about sector with the highest Green House Gas abatement potential, he said brick manufacturing units top the list with 10.0 million tons carbon abatement potential per year, followed by transport sector (8.8 million tons), oil and gas sector (6.53 million tons), textile industry (5.62) etc.

Lee In-Ki, Consul General of Korea hoped that friendly relations between Korea and Pakistan would lead to meaningful co-operation between the two countries, including training provision for concerned professionals belonging to Pakistan. He on the occasion threw light on the reasons that led to establishment of KORTA Senior government officials belonging to Ministry of Foreign Affairs, Trade and Environment including Feroz Shah, Syed Amjad Hussain also actively participated in the session.

 

[ice_man]

sorry my ignorance but what is this CLEAN DEVELOPMENT MECHANISM??? and what does it consist.......