ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has not approved Government of Sindh’s suggestion to adopt provincial share in meeting Nationally Determined Contributions (NDCs) targets on the basis of population since Greenhouse Gases (GHG) emissions in any province may be higher than its share in national population due to many other factors, well informed sources told Business Recorder.
On May 24, 2023, Ministry of Climate Change & Environmental Coordination (MoCC&EC) informed the forum that the ECC, while considering the summary on the issue titled “participation of Sindh’s Mangroves Projects” in its earlier meeting held on May 15, 2023 inter-alia had directed the Ministry to carry out further deliberations on the proposals with all key stakeholders in a holistic manner and based on the consultations.
The forum was informed that consultation was also carried out with the Sindh Forest Department. The latter also shared agreements for both projects with the Ministry: Delta Blue Carbon-l (DBC-I) and Delta Blue Carbon-II (DBC-II). It was added that the Government of Sindh had undertaken to obtain all necessary approvals in line with Paris Agreement for transaction free of any restriction or carbon accounting arrangements that may negatively impact the value of or the ability to transact such Blue Carbon Emissions.
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Ministry of Climate Change & Environmental Coordination further noted that the Sindh Forest Department was implementing two Indus delta mangrove projects, viz, Delta Blue Carbon-1 (DBC-l) and Delta Blue Carbon-II (DBC-II) in collaboration with a private entity, which had been selected by Sindh Forest Department.
Under DBC-I, started in 2015, about 3.1 MtCO2e had been sequestered and traded in international VCM, generating revenue of $14.7 million for Sindh whereas the agreement for the DBC-II project was executed in March 2020. The Sindh Forest Department with the approval of Sindh Government had requested a No Objection Certificate (NOC) from MoCC&EC to continue selling the carbon credits in the international VCM till 2043.
This NOC would mean that those carbon credits would not be counted by Pakistan against its NDC commitment till 2M3 (Sindh did not agree to MoCC&EC’s advice to reduce the concession period till year 2033).
In support of its request, Sindh Forest Department had furnished following arguments: (i) DBC-I and DBC-II projects were initiated prior to the commitments made under NDC in 2021; (ii) in percentage terms, the contribution of DBC-I and DBC-II would be less than 1% of the pledged 240 MtCO2e under NDCS, hence denying corresponding adjustments for the carbon credits of both projects will not have any substantial impact; (iii) these projects were expected to generate about $ 200 to 220 million till 2043 with, additional benefits of creating green jobs, so far 21,000 jobs have been created; and investment towards afforestation, restoration and re-vegetation of the mangroves.
Annual revenue generated from DBC-I and DBC-II will help in achieving biodiversity, climate and community benefits in the coastal areas of Sindh province; and (iv) Sindh Government has assured to undertake all possible measures to reduce its share of GHG emissions on the basis of population, i.e., 55 MtCOze by the year 2035 in Pakistan’s NDC target of 2rO MtCO2e.
Such measures for the three worst GHG emitting sectors will include (a) incentivizing feed additives to reduce livestock GHG emissions, (b) improving periodic vehicular testing to reduce transport emissions, and (c) enhancing Sindh Energy Efficiency & Conservation Agency’s (SEECA) capacity to carry out industrial energy audits.
After detailed discussion, the ECC approved corresponding adjustments in the Nationally Determined Contributions (NDCs) of Pakistan for both projects of Sindh, Delta Blue Carbon-l (DBC-I) and Delta Blue Carbon-II (DBC-II), based on the justification that these projects were initiated prior to the commitments made under NDCS in 2021.
The ECC; however, did not approve Government of Sindh’s reasoning of adopting provincial share in meeting NDC targets on the basis of population since GHG emissions in any province may be higher than its share in national population due to many other factors.
Accordingly, Sindh shall mitigate its GHG emissions as per actuals as determined under carbon Market Framework and Registry which was under preparation and to be presented to the competent forum for approval.
Copyright Business Recorder, 2023
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