International trading is possible for carbon credits that permit a nation or organisation to emit a certain amount of carbon, with businesses that have a larger carbon footprint.
In order to produce clean energy from hydroelectric and solar sources without harming the environment, the government of Khyber Pakhtunkhwa has created a plan to advertise and sell its carbon credits to the World Bank.
International trading is possible for carbon credits, which are licenses that permit a nation or organisation to emit a certain amount of carbon, with businesses that have a larger carbon footprint.
In light of this, the energy and power department has requested permission from the office of the Khyber Pakhtunkhwa KP Chief Secretary in a proposal, asking for resources and technical assistance from the World Bank to certify and market the province’s carbon credits.
By doing this, the department will be able to market these resources—which belong to the provincial government—more successfully and claim its fair share. In a proposal, the KP government asserts that the Pakhtunkhwa Energy Development Organization (PEDO) has a legitimate claim to a portion of the carbon credit market.
The proposal states that PEDO has been producing clean energy for almost 30 years and that it currently connects 161.8 MW of hydropower from hydropower projects, 28,884 KW from community-owned micro hydropower plants, and 16,054.67 KW from various daily solar projects to the national grid.
To calculate the number of tons of carbon dioxide equivalent, the energy department has already given the climate change and environment departments the information on power generation (tCO2e).
In this regard, Pedo has been contacted by Pakistan Environment Trust (PET), a non-profit organisation with offices in Islamabad, to market its carbon credits.
According to an estimate by PET, these projects could bring KP $60 million a year. The proposal also states that it is anticipated that the organisation will only participate in the offset market based on discussions with the PET (presumably the Pakhtunkhwa Energy Development Organization).