Oct 21, 2008 (LBO) – A host of Sri Lankan companies, especially plantations firms, have submitted proposals for projects to earn carbon credits by reducing greenhouse gas emissions, Ministry of Environment officials said.
Most of the projects are for hydro-power projects, especially small or ‘mini-hydro’.
But there are others submitted by some firms, including listed ones, using methods like steam generated from coconut shell charcoal manufacture and paddy husk thermal power generation.
Other projects include wind power generation, disposal of solid waste generated in the capital Colombo, and replacing oil fired steam boiler with new wood fired boilers in factories.
Chandani Panditharatne, deputy director of the climate change division of the environment ministry, said the government wants to encourage carbon trading in Sri Lanka.
The Sri Lanka Carbon Fund, set up by the government, will promote projects such as renewable energy, biomass, waste management and sustainable transport, industrial and agricultural practices, she said.
The fund has an initial capital of 100 million rupees, with the government having a 51 percent stake, and the balance capital to be raised from the private sector, she said.
“We aim to give technical and financial help to carbon trading projects, in sales and negotiations, to bundle small projects together, and to facilitate access to capital funding.”
The fund can buy CERs (Certified Emission Reductions – the tonnes of carbon dioxide avoided) from local industries and sell them.
CERs, which could be generated from two main activities; aforestration and reforestration, and emission reductions, are now a commodity in the global market.
Panditharatne said the projects must result in real, measurable and long term emission reductions and be certified by a third party.
“Now the Carbon Fund is developing a business plan which should be in place by the end of the year,” she said.
The fund is linking up with institutions like the World Bank, United Nations Development Programme and the Japan Bank for International Co-operation to get financial and technical support.
“We want the private sector to engage more in the carbon trading market and get benefits of the global market in carbon dioxide trade.”
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