KP to soon showcase its carbon credits potential in global markets as technical feasibility near completion

PESHAWAR, May 12 (APP): Khyber Pakhtunkhwa province with its rich potential of carbon stock due to large forest cover is heading towards tapping of the resource by entering into global carbon credit markets as the technical feasibility of stocks in the province is near completion.
“The Forest Department of Khyber Pakhtunkhwa in cooperation of Sustainable Energy and Economic Development (SEED Pakistan) is working over preparation of a baseline survey of carbon stock of KP to attract carbon offset buyers and to create a gateway for national and international investors,” informed Mazhar Iqbal, Focal Person Reducing Deforestation and Degradation (REDD) plus Initiative.
“Carbon credit is a permit which allows a country or organization to produce certain amount of carbon emission, can be traded globally with other companies with larger carbon footprint,” he explains.
After completion of the baseline survey and other formalities, the province will be able to present its carbon stock to international carbon crediting programmes including Gold Standard and VERRA’s Verified Carbon Standard (VCS) programme, Mazhar Iqbal told APP.
Mazhar informed that 45 percent of country’s forest cover is in Khyber Pakhtunkhwa, containing 51 percent of carbon stocks.
Avoiding one hectre deforestation in Khyber Pakhtunkhwa means emission reduction of 367 tonnes of carbon dioxide, he added.
“The technical feasibility of carbon stock in KP is in progress and is expected to be completed in coming month of July 2024,” informed Syed Muhammad Sheryar, Public Private Partnership Analyst SEED Pakistan.
Talking to APP here on Thursday, Syed Muhammad Sheryar said carbon capturing is carried out through two procedures including nature base solution of increasing forestry and technology based through conversion of fossil fuel to renewable energy sources.
SEED is working on technical assessment through nature based solution on a three pronged strategy of ARR (Afforestation, Reforestation and Revegetation), REDD+ and IFM (Improved Forest Management).
In the baseline survey the potential of the components of ARR, REDD+ and IFM will be mentioned in the province, he told APP.
After completion of technical feasibility in July next, SEED will focus on preparation of Economic and Environmental Analysis to evaluate the cost and benefits of carbon credits.
The Economic and Environmental Analysis is scheduled for completion in September 2024 and hopefully will meet its deadline, he hoped.
In October, the third phase of Commercial Viability of the carbon sequestration project will be completed, he went on to say.
The project, after completion of different stages will later be presented in the meeting of Public Private Partnership (PPP) Committee of Khyber Pakhtunkhwa for approval.
The PPP committee is headed by Chief Minister KP who will give final approval of the project, opening ways for calling tenders by investors in March 2024, Sheryar disclosed.
He said carbon offset project completion will bring investment both from national and international level and provide financial benefits to the provincial kitty besides local communities.
The Sindh government has taken lead by introducing Delta Blue Carbon project to replenish and restore mangroves over 450,000 hectres. The project is Pakistan’s only initiative qualifying for carbon credit trade and has the potential to generate up to Dollar 100 million for the country.
Khyber Pakhtunkwa has larger forest and carbon stock as well and can generate more revenue than Sind by offering carbon credit trade to investors, Sheryar hoped.