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Lanka to cash in on Carbon savings? 

by Tharika Goonathilake

Sri Lanka is exploring the possibility of trading ‘carbon savings’ to cash in on the plethora of opportunities ope ned up by the Kyoto Protocol.The Kyoto Protocol is a landmark document which seeks global cooperation in cutting down greenhouse gases, especially carbon dioxide responsible for heating up the Earth’s atmosphere and for reducing the resultant detrimental changes in the world’s climate.Carbon dioxide, a byproduct of oil, gas and coal accounts for most of the six greenhouse gases that scientists say are causing a potentially perilous rise in the Earth’s atmospheric temperature. 

The gases hang in the lower atmosphere like an invisible screen, causing solar heat to build up rather than radiate safely back into space. During the 1980s, public concern backed by scientific research resulted in the United Nations Convention on Climate Change (UNFCCC) which was adopted in May 9, 1992.This was followed by a series of meetings of the Intergovernmental Negotiating Committee for a Framework Convention on Climate Change (INC/FCCC). 

The main objective of the UNFCCC is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the Earth’s climate system. The Kyoto protocol is meant for implementation of the UNFCCC. The Kyoto Protocol, which was adopted at the Third Conference of Parties (COP3) of the United Nations Framework Convention on Climate Change (UNFCCC) provides three main avenues for countries to meet greenhouse emission reduction targets and initiate mechanisms to participate in this global effort.The three main areas include carbon dioxide emission trading or CO2 emission trading, joint implementation and Clean Development Mechanisms (CDM). 

The first two areas provides a mechanism for trading CO2 emissions among industrial countries - responsible for the majority of emissions.The third area, the Clean Development Mechanism (CDM) is an option available to both developing nations and developed nations. CDM is a project-based mechanism with dual purposes. 

How CDM works

Under the CDM, a developed county can invest through private and public entities) in ‘clean projects’ or greenhouse gas mitigating or sequestering projects in a developing country’s sectors/industries responsible in emitting greenhouse gases. 

The reduction in carbon or other greenhouse emissions calculated in tons by the use of this CDM in the developing country concerned- that would otherwise be released to the atmosphere- is termed as ‘carbon savings.’ The reduced carbon dioxide tons or ‘carbon savings’ can then be resold to a developed nation. 

This ‘carbon savings’ will help the developed country to achieve their own greenhouse gas emission reduction commitments as specified in the Kyoto Protocol targets.Through CDM, a developing country also has the advantage of achieving sustainable development objectives without the enormous financial commitment usually required to implement such technology. CDM projects are already being discussed in countries like Bolivia, Costa Rica, Brazil with selling and buying prices ranging anything between US$ 1 to US$ 10. 

 Sri Lanka’s stand

According to Environment Ministry’s Director Economic and Global Affairs Dr. B. M. S. Batagoda, the Ministry is currently developing a National Policy on Clean Development Mechanism. 

A series of sessions has already being held within the last two years to deliberate on the mechanisms concerned. “The Ministry has had several project proposals under the CDM provisions and we are now conducting a National Strategy Study on Climate change to explore the opportunities opened up for Sri Lanka,” he said.

The University of Moratuwa and Peradeniya are also conducting a series of studies to explore technical procedures and research activities on sectors responsible for emitting greenhouse gases.He said that CDM and the carbon savings trade could be applicable for several sectors.

CDM sectors in SL 

Sri Lanka has the potential of participating in the CDM projects through Transport, Agriculture, Urban Waste, Power Generation, Forest Deforestation and Livestock sectors. 

In Sri Lanka, the green house gases include CO2 and Methane emissions.Dr.Batagoda also said that the current proposals for review under the CDM provisions are mostly for the Power Generation sector.They include cleaner technology investments for power generation- through Dondra (energy generation through firewood), wind and solar power and coconut shells.“These proposals have been forwarded as possible ‘carbon saving’ mechanisms that could be tapped for generating much needed foreign exchange to the country’s coffers. 

The projects also aims to save up to anything between 150,000 to 50,000 carbon tons through CDM initiatives,” he said.However, Dr. Batagoda said the Ministry is studying the pros and cons of this venture. He reiterated that careful consideration will be given to the ‘trading issue’ since most of the modalities and procedures relevant to CDM are not yet properly redefined. 

There is also the issue of pricing since some countries are attempting to sell at lower rates. There is no fixed pricing structure in selling carbon tonnes. The offer Sri Lankan has so far received is for selling its carbon through CDM is a maximum of US$ 5, he said.“But, despite certain shortcomings certain developed countries have already started buying CERs (or Certified Emissions Reduction units of carbon) from developing countries. 

However, we have to give serious consideration to the issues to ensure that Sri Lanka is not at an disadvantage,” Dr. Batagoda said.

Overcoming constraints 

The Ministry hopes to overcome these constraints through the establishment of a National Expert Committee on CDM to evaluate projects until a proper CDM process is in place at the international level.

The total emission from all the interim projects by the National Committee has also been limited to not more than 200,000 tons of carbon with the maximum CDM project duration being limited to 10 years.

He also pointed out that since Sri Lanka is a developing country and had no emission reduction commitment under the Kyoto Protocol and there could be other cheaper and energy efficient technologies that would help the country’s development efforts.

Lunawa Lagoon - facelift

by Ranga Kalansooriya

Lunawa lagoon, which has now turned to a mosquito generator, will be renovated to its old glory with Asian Development Bank (ADB) assistance. The 600-acre once pristine lagoon, which harboured over 40 rare species of fish almost two decade ago, was the prime income avenue for more than 450 families in Lunawa and suburbs, says Sunny Fernando, a senior citizen of the area.“I can still remember the varieties of fish we found in this lagoon. Today it is a stinking, sorry site. 

A birth place only for mosquitoes, and not for fish,” Mr. Fernando laments.“Sometimes we find a small variety like sprats, but you get a kerosine taste in it.” The extent of the pollution of the Lagoon is such. According to him, the fight to protect the Lagoon commenced more than a decade ago. “I can remember Mr. Tyronne Fernando writing letters to the coast conservation authority to take action on this issue,” he says, charging that despite repeated representations no efforts was made. 

The colour of the water has turned purple. Today, the 600-acre lagoon generates zero income to the families who were totally dependent on it in the recent past and is also a massive source of pollution to the entire area. The residents blame the factories and other industries for this situation. 

According to Moratuwa Mayor Ananda Kusumsiri a substantial amount of the 200-ton daily garbage collection of Moratuwa MC goes into the lagoon.The coast resource management project of the Ocean Resource Development Ministry has identified the renovation of the Lunawa Lagoon as a priority. “This lagoon has now become a big headache to the people of Moratuwa. 

But our aim is to bring its old glory back,” says Project Director Lalith Hettiarachchi.The launch of the project and distributing garbage collectors to the public was done with the participation of Foreign Minister Tyronne Fernando on Monday (18). “We must be thankful to the ADB and the Netherlands Government for assisting us on this needful project,” said the Minister.“sri lanka has been categorised by the aid agencies as a country which does not spend at least 20 percent of allocated funds. We must change this perspective. We will reach our goals on this project very soon,” he added.

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