Clean Development Mechanism For Textile Processing and Tannery Sector of Pakistan

CLEAN DEVELOPMENT
MECHANISM FOR TEXTILE

PROCESSING AND TANNERY
SECTOR OF PAKISTAN
SCI-Pak: Sustainable and Cleaner Production

in Manufacturing Industries of Pakistan
www.sci-pak.org
2010
www.ihtpk.com
This Project is Funded By the European Commission

CDM Guidebook for Textile Processing and Tannery Sector
Table of Contents
1. Background of Clean Development Mechanism ......................................................... 1

1.1 Kyoto Protocol .............................................................................................. 2
1.2 Clean Development Mechanism (CDM): .......................................................... 2
1.3 Joint Implementation (JI) .............................................................................. 5
1.4 International Emissions Trading (IET) ............................................................. 5
2. Key Players involved in a CDM Project Activity .......................................................... 6
2.1 Project Participants ....................................................................................... 6
2.2 CDM Executive Board .................................................................................... 6
2.3 Designated National Authority (DNA) .............................................................. 7
2.4 Designated Operational Entity (DOE) .............................................................. 9
3. CDM Project Categories & Sectoral Scopes .............................................................. 11
3.1 Small Scale CDM Project Activities ................................................................. 11
3.2 Large Scale CDM Project Activities ................................................................. 11
3.3 Programme of Activities................................................................................ 12
3.4 Sectoral Scopes ........................................................................................... 12
4. Eligibility Criteria for CDM Projects .......................................................................... 14
5. Key Steps Involved in CDM Project Development ..................................................... 16
5.1 Preparation of Project Design Document ........................................................ 17
5.2 Project Validation ......................................................................................... 21
5.3 Host Country Approval ................................................................................. 22
5.4 Registration with the CDM Executive Board .................................................... 23
5.5 Implementation and Monitoring .................................................................... 23
5.6 Verification/Certification and Issuance of CERs ............................................... 23
5.7 Sale of CERs ................................................................................................ 23
6. Status of CDM in Pakistan ...................................................................................... 25
7. Sectoral Assessment of CDM Projects in Textile and Tannery Sectors ........................ 33
7.1 CDM Projects in China and India ................................................................... 33
7.2 Detailed Analysis of CDM Projects in Textile and Tannery ................................ 34
7.3 Potential Areas for CDM Intervention ............................................................. 41
7.4 Causes for Low Participation of Industrial Sector of Pakistan in the CDM........... 43
7.5 Measures Proposed to Boost CDM in Industrial Sector of Pakistan .................... 44
Appendix-I................................................................................................................... 46
Annex I Countries ..................................................................................................... 46
Annex II Countries.................................................................................................... 47
Non Annex I Counties ............................................................................................... 47
Appendix-II: Contact Information of Pakistan DNA .......................................................... 52
Appendix-III: List of Accredited Designated Operational Entities (DOEs) ........................... 53
ii
List of Figures
Figure 1: General Cycle of CDM ..................................................................................... 16
Figure 2: Registered project activities by host parties ...................................................... 25
Figure 3: Expected average annual CERS from registered projects by host parties ............ 26
Figure 4: CDM projects in China .................................................................................... 27
Figure 5: CDM projects in India ..................................................................................... 28
Figure 6 : CDM projects in Pakistan ............................................................................... 29
Figure 7: Overall Comparison of Pakistan, India and China .............................................. 30
Figure 8: CDM Projects in China by Type ....................................................................... 33
Figure 9: Number of CDM projects in India by type ......................................................... 34
List of Tables
Table 1: Abbreviations ................................................................................................... iv
Table 2: Designated Operational Entities in Pakistan ....................................................... 10
Table 3: List of Sectoral Scopes ..................................................................................... 12
Table 4: Sectoral distribution of GHG emissions .............................................................. 14
Table 5: List of CER Buyers Active in Pakistan................................................................. 24
Table 6: Breakup of CDM Projects in China ..................................................................... 27
Table 7: Breakup of CDM Projects in India...................................................................... 28
Table 8: Breakup of CDM Projects in Pakistan ................................................................. 29
Table 9: List of CDM Projects in Pakistan ........................................................................ 31
iii
Table 1: Abbreviations
CDM - Clean Development Mechanism

CER - Certified Emission Reduction
CH4 - Methane
CO2 - Carbon dioxide
CoP/MoP - Conference Of the Parties serving as the Meeting Of the Parties to Kyoto Protocol
CPA - CDM Project Activities
DNA - Designated National Authority
DOE - Designated Operational Entity
EB - Executive Board
EIA - Environmental Impact Assessment
EPA - Environmental Protection Agency
ER - Emission Reductions
ERPA - Emission Reduction Purchase Agreement
ET - Emission Trading
EU - European Union
EU ETS - European Union Emission Trading System
GHG - Greenhouse gases
HCA - Host Country Approval
HFC - Hydrofluorocarbon
HFO - Heavy Fuel Oil
HRSG - Heat Recovery Steam Generator
IEE - Initial Environmental Examination
IPCC - Intergovernmental Panel on Climate Change
IRR - Internal Rate of Return
ITL - International Transactional Log
JI - Joint Implementation
Km - kilo meter
Kt - kilo metric tons
LoA - Letter of Approval
MW - Mega Watt
N2O - Nitrous oxide
NG - Natural Gas
NOC - No Objection Certificate
NPV - Net Present Value
ºC - Degree Celsius
OECD - Organization of Economic Co-operation and Development
PDD - Project Design Document
PFC - Perfluorocarbons
PoA - Programme of Activities
PP - Project Participant
iv
PVT - Private
SF6 - Sulfur hexafluoride
SSC - Small Scale
t CO2 - Metric tons of carbon dioxide
TPH - Metric tons per hour
UN - United Nations
UNEP - United Nations Environment Programme
UNFCCC - United Nations Framework Convention on Climate Change
WHR - Waste Heat Recovery
WMO - World Meteorological Organization
Yr - Year
v
1. Background of Clean Development Mechanism
G
lobal climate change is one of the most critical challenges of the 21st century. In the
last 100 years, the average surface temperature of the planet has risen by
approximately 0.7o Celsius and there is overwhelming scientific evidence that this
global warming is due to the intensification of the greenhouse effect, in turn caused by the
increased atmospheric concentration of greenhouse gases, namely, carbon dioxide (CO2),
methane (CH4), nitrous oxide (N2O), hydroflourocarbons (HFC 23 and HFC 134a) and sulfur
hexafluoride (SF6).
Climate change emerged on the political agenda in the mid-1980s with the increasing
scientific evidence of human interference in the global climate system and with growing
public concern about the environment. In 1988, the United Nations Environment Program
(UNEP) and the World Meteorological Organization (WMO) established the
Intergovernmental Panel on Climate Change (IPCC) to provide policy makers with
authoritative scientific information. The IPCC published its first report in 1990 concluding
that the growing accumulation of human-made greenhouse gases in the atmosphere would
―enhance the greenhouse effect, resulting on average in an additional warming of the
Earth‘s surface‖ by the next century, unless measures were adopted to limit emissions. The
United Nations General Assembly responded by formally launching negotiations on a
framework convention on climate change and establishing an ―Intergovernmental
Negotiating Committee‖ to develop the treaty. Negotiations to formulate an international
treaty on global climate protection began in 1991 and resulted in the completion, by May
1992, of the United Nations Framework Convention on Climate Change (UNFCCC). The
UNFCCC was opened for signature during the UN Conference on Environment and
Development (the Earth Summit) in Rio de Janeiro, Brazil, in June 1992 and entered into
force in March 1994.
The Conference of Parties is UNFCCC‘s supreme body responsible for monitoring and
implementing the Convention and any related legal instruments. The first Conference of
Parties held in Berlin in 1995 concluded that the vast majority of the developed countries
would not succeed in reducing their emissions to pre-1990 levels by around 2000, as they
were committed to do under the Convention. The Berlin Mandate declared that the
developed countries, based on the principle of common but differentiated responsibilities laid
down by the Convention, should establish, by means of a Protocol or other legal instrument,
quantitative emission reduction targets, as well as a description of the policies and measures
needed to achieve these targets. Following two years of intense negotiations held in Kyoto in
December 1997, adopted a Protocol to the Convention, known as the Kyoto Protocol, which
established quantified anthropogenic GHG emission reduction or limitation commitments for
the developed countries.
Background of Clean Development Mechanism 1

1.1 Kyoto Protocol
The Kyoto Protocol is an agreement made under the United Nations Framework Convention
on Climate Change (UNFCCC). Countries that ratify Kyoto Protocol commit to reduce their
emissions of carbon dioxide and five other greenhouse gases, or engage in emissions
trading if they maintain or increase emissions of these gases produced by them. According
to Kyoto Protocol, reducing these
emissions is crucially important, as
carbon dioxide is causing the earth‘s Parties (countries) to UNFCCC are classified
atmosphere to heat up. as:
 Annex I countries – industrialized
The Kyoto Protocol defines legally countries and economies in transition
binding emission targets for the Annex  Annex II countries – OECD member
I Parties and establishes mechanisms states
for meeting them.  Non Annex-I - Mostly developing
countries (Pakistan is one of them).
The Kyoto Protocol established the
following three additional
implementation mechanisms to
complement the domestic GHG reduction targets implemented by the Annex I Parties:
 Clean Development Mechanism (CDM)

 Joint Implementation (JI)
 Emissions Trading (ET).
1.2 Clean Development Mechanism (CDM):
The clean development mechanism (CDM) is a project-based mechanism under the Kyoto
Protocol that enables the
generation and issuance of
certified emission reductions Certified Emission Reduction (CER) is defined as
(CERs) from eligible CDM project
activities.; it allows industrialized
reduction of CO2 emission of one ton or
countries (Annex-I countries) to equivalent that has been verified and registered
achieve part of their emission
reduction commitments by through the procedure outlined by CDM
conducting emission reducing Executive Board
projects abroad in developing
countries, and counting the
reductions achieved toward their own commitments. CDM projects will take place in
countries without targets, i.e. developing countries. A condition for the issue of credits in

respect of the reductions achieved

is that the projects result in real, Objectives of the CDM
measurable and long-term climate
change benefits.  To assist non-Annex I Parties to:
o meet their sustainable goals and
CERs issued by the Executive Board
are sold and purchased under
priorities, by hosting projects that
private commercial arrangements contribute to these goals, and
between the project participants for o contribute to the UNFCCC’s overall
the sale and purchase of the CERs objective of stabilizing global
and forwarded and transferred concentrations of greenhouse gas
between Annex I Parties – and the emissions at a level that would
public and private entities prevent dangerous human
authorized by those Parties – via
the international transaction log
interference with the climate system;
(ITL), established under the and
international emissions trading  To assist Annex I Parties to meet their
mechanism of the Kyoto Protocol. Kyoto targets at a lower cost, by allowing
the use of CERs generated by emission
CERs can then be used to satisfy reducing CDM projects in non-Annex I
Parties‘ legally binding quantified countries to be used to meet in part these
emission limitation and reduction
commitments (often referred to as
obligations.
‗Kyoto targets‘).
1.2.1 Rationale of CDM
The rationale behind the mechanisms is that greenhouse gas emissions are a global problem
and that the place where reductions are achieved is of less importance. In this way,
reductions can be made where costs are lowest, at least in the initial phase of combating
climate change. It is estimated that the linking of project credits to the emissions trading
system will lower the annual compliance costs for companies covered by the scheme. CDM
will also transfer environmentally sound technology to developing countries, which will help
them move onto a sustainable path of development.
1.2.2 Benefits of CDM for Pakistan
The basic principle of the CDM is simple: developed countries can invest in low-cost
abatement opportunities in developing countries like Pakistan and receive credit for the
resulting emissions reductions, thus reducing the cutbacks needed within their borders.
While the CDM lowers the cost of compliance with the Protocol for developed countries,
developing countries will benefit as well, not just from the increased investment flows, but
also from the requirement that these investments advance sustainable development goals.
The CDM encourages developing countries to participate by promising that development

priorities and initiatives will be addressed as part of the package. This recognizes that only
through long-term development will all countries be able to play a role in protecting the
climate.
For a developing country like Pakistan, the CDM can:
 Attract capital for projects that assist in the shift towards a more prosperous but less
carbon-intensive economy;
 Encourage and permit the active participation of both private and public sectors;
 Provide a tool for technology transfer, if investment is channeled into projects that
replace old and inefficient fossil fuel technology, or create new industries in
environmentally sustainable technologies; and,
 Help define investment priorities in projects that meet sustainable development
goals.
Specifically, the CDM can contribute to Pakistan‘s sustainable development objectives

through:
 Transfer of technology and financial resources;

 Sustainable ways of energy production;
 Increasing energy efficiency & conservation;
 Poverty alleviation through income and employment generation; and,
 Local environmental side benefits
The drive for economic growth presents both threats and opportunities for sustainable
development. While environmental quality is an essential element of the development
process, in practice, there is considerable tension between economic and environmental
objectives. Increased access to energy and provision of basic economic services, if
developed along conventional paths, could cause long-lasting environmental degradation —
both locally and globally. But by charting a different course and providing the technological
and financial assistance to follow it, many potential problems could be avoided.
In comparing potential CDM projects with what might otherwise take place, it is clear that
the majority will entail not only carbon reduction benefits, but also produce a range of
environmental and social benefits within developing countries. Sustainable development
benefits could include reductions in air and water pollution through reduced fossil fuel use,
especially coal and oil, but also extend to improved water availability, reduced soil erosion
and protected biodiversity. For social benefits, many projects would create employment
opportunities in target regions or income groups and promote local energy self-sufficiency.
Therefore carbon abatement and sustainable development goals can be simultaneously
pursued.
Many options under the CDM could create significant co-benefits in Pakistan, addressing
local and regional environmental problems and advancing social goals. For Pakistan, that

might otherwise give priority to immediate economic and environmental needs, the prospect
of significant ancillary benefits should provide a strong inducement to participate in the
CDM.
1.3 Joint Implementation (JI)
In joint implementation Annex I Parties which have ceilings for GHG emissions (emission
caps), assist other Annex I Parties to implement project activities to reduce GHG
emissions, and credits will be issued based on amount of emission reductions achieved by
the project activities. A Party where JI project is implemented, is called a host Party and the
credit from the JI is called emission reduction unit (ERU)
1.4 International Emissions Trading (IET)
International Emissions Trading is to trade Kyoto Protocol units (KP units) including part of
assigned amounts, CERs, ERUs and etc, between Annex I Parties. Only Annex B Parties of
the Kyoto Protocol can participate International Emissions Trading. Through market
mechanism, International Emissions Trading can decrease total cost of Annex I Parties to
achieve their collective emission reduction targets.
The CDM is the only additional implementation mechanism that permits the participation of
non-Annex I Parties (so-called because they are not included in Annex I of the Convention),
which do not have reduction targets and are made up of the developing nations, such as
Pakistan. This economic instrument aims to make it easier for the Annex I countries to meet
their targets since it is frequently more cost efficient to reduce or remove GHG emissions
outside their frontiers.
As both joint implementation and international emission trading do not involve Non Annex I
countries like Pakistan, therefore these have not been discussed any further in this
document.

2. Key Players involved in a CDM Project Activity

2.1 Project Participants
A typical list of project participants to a CDM project activity includes:
 Project Developer
 CDM Consultant
 CER buyers
 Project Financer
The role of the project participants is to:
 Develop Project Design Document (including Additionality assessment and monitoring

provisions) for the purposes of the CDM
 Implement CDM Project
 Monitor emission reductions
 Deliver CERs to CER Purchaser
The role of each project participant may vary according to the structure of the project.
2.2 CDM Executive Board
Article 12(4) of the Kyoto Protocol1 establishes an Executive Board to supervise the CDM:
―The clean development mechanism shall be supervised by an executive board of the clean
development mechanism (Kyoto Protocol, Article 12(4)).‖
The CDM modalities and procedures

reaffirm that:
―The Executive Board shall supervise the The Conference of Parties (CoP) is
CDM, under the authority and guidance of
UNFCCC’s supreme body responsible for
the Conference of the Parties/Meeting of
the Parties (COP/MOP), and be fully monitoring and implementing the
accountable to the COP/MOP.‖
Convention and any related legal
The role of the CDM executive board is to: instruments.
 Develop rules and procedures for The purpose of the CoP/MoP is to
CDM operation
regulate and monitor the
 Approve new methodologies
related to baselines, monitoring implementation of the Kyoto Protocol.
plans and project boundaries
1
http://unfccc.int/resource/docs/convkp/kpeng.pdf
Key Players involved in a CDM Project Activity 6

 Accredit Designated Operational Entities(DEOs / Validators)

 Review Validation Reports
 Register Projects (in accordance with specific procedures);
 Review Certification Reports (in accordance with specific procedures);
 Issue CERs (in accordance with specific procedures);
 Make publicly available information on proposed CDM Project activities in need of
funding and investors seeking opportunities
 Formally accepts a project validated as a CDM project activity (registration);
 Maintain a public database of CDM Project activities containing information on
registered Project Design Documents, comments received, Verification Reports, CDM
Executive Board decisions and information on all CERs issued;
 Develop and maintain the CDM Registry;
2.3 Designated National Authority (DNA)
The designated national authority (DNA) is the body granted responsibility by a Party (Host
Country) to authorize and approve participation in CDM projects. Establishment of a DNA is
one of the requirements for participation by a Party in the CDM. The role of the DNA is to
provide the letter of approval to project participants in CDM projects. In the case of the host
Party DNA, this letter of approval must confirm that the project activity contributes to
sustainable development in the country.
2.3.1 Responsibilities of DNA
The Executive Board has clarified that in issuing the letter of approval, a DNA should include
all the required elements as requested by the Board, and in particular:
―That the country has ratified the Kyoto Protocol, the approval of voluntary participation in
the proposed CDM project activity, and, in cases of host country letter of approval that the
proposed CDM project activity contributes to sustainable development.2‖
2.3.2 DNA of Pakistan
Pakistan deposited its instrument of accession to the Kyoto Protocol on 11th January 2005,
and thus became eligible to benefit from CDM. For this purpose the Ministry of Environment
was declared as the Designated National Authority (DNA). A CDM Cell was established in
August 2005 for providing technical and policy support to, including implementation of CDM
Strategy, conduct awareness raising, enhancement of capacity for CDM project
development, review of CDM projects for grant of approval by the DNA and to advise the
Government in technical matters related to CDM in Pakistan3
2
http://cdmrulebook.org/64
3
http://www.cdmpakistan.gov.pk/

Pakistan National Operational Strategy for CDM was approved by the Prime Minister of
Pakistan in February 2006. The Strategy provides policy guidance for implementation of CDM
in Pakistan in line with national sustainable development goals. It is an incentive based
Strategy which ensures efficiency and transparency. The Strategy defines institutional
arrangement for implementation of CDM in Pakistan (for instance creation of CDM
Secretariat), tax and credit sharing policy and the criteria for grant of Host Country Approval
to CDM projects.
Tax and Credit Sharing Policies is the most remarkable feature of the Strategy; it is stated
that ―no income tax or duty shall be levied on transfer/sale of CDM emissions credits (i.e
Certified Emission Reductions, Verified Emission Reductions etc). Similarly, credits shall be
awarded fully to the project sponsors. Banks and other financial institutions shall also be
encouraged to provide special incentives to the investors.‖4.
The CDM Secretariat represents the DNA in Pakistan and ―is headed by the Director General
(Environment), Ministry of Environment, who is also the National Focal Person for DNA-
Pakistan. Contact details of Pakistan DNA are given in Appendix-I.
A CDM Cell is established and attached to the Secretariat. The functions of the Secretariat
are as follows:
 To act as the national focal point for the CDM program;

 To issue official approval for CDM projects on behalf of the Government of Pakistan;
 To draft CDM related policies and operational strategies, in consultation with
stakeholders;
 To assess projects against the National Sustainable Development Criteria and extend
approval to projects;
 To provide necessary support to stakeholders in identification, development,
marketing and management of CDM projects;
 To act as secretariat to the National CDM Steering Committee and CDM Technical
Committees;
 To develop and maintain a database with a view to provide CDM related information
to project developers and other national and international stakeholders;
 To raise awareness on CDM in Pakistan;
 To undertake activities for enhancing the capacity of local stakeholder organizations
to effectively design and implement CDM projects; and
 Other policy support to effectively design, implement and manage CDM projects.5‖
4
http://www.cdmpakistan.gov.pk/cdm_stat.html
5
http://www.cdmpakistan.gov.pk/cdm_sectarirat.html

2.4 Designated Operational Entity (DOE)
Designated operational entities (DOEs) are independent auditors that assess whether a
potential project meets all the eligibility requirements of the CDM (validation) and whether
the project has achieved greenhouse gas emission reductions (verification and certification).
They are accredited by the CDM Executive Board and designated by the CoP/MoP to perform
these functions, according to their expertise.
Usually, a DOE performs either validation or verification and certification, but the CDM
Executive Board can give permission for the same DOE to perform all three tasks for the
same project (a complete list of DOEs along with their contact details is provided in
Appendix II).
A designated operational entity performs following functions:
1. Validate proposed CDM project activities;

2. Verify and certify reductions in anthropogenic emissions by sources of greenhouse
gases;
3. Comply with applicable laws of the Parties hosting CDM project activities when carrying
out its functions.
4. Demonstrate that it, and its subcontractors, have no real or potential conflict of
interest with the participants in the CDM project activities for which it has been
selected to carry out validation or verification and certification functions;
5. Perform one of the following functions relating to a given CDM project activity:
validation or verification and certification. Upon request, the Executive Board may,
however, allow a single designated operational entity to perform all these functions
within a single CDM project activity;
6. Maintain a publicly available list of all CDM project activities for which it has carried out
validation, verification and certification;
7. Submit an annual activity report to the Executive Board;
8. Make information obtained from CDM project participants publicly available, as
required by the Executive Board. Information marked as proprietary or confidential
shall not be disclosed without the written consent of the provider of the information,
except as required by national law. Information used to determine additionality, to
describe the baseline methodology and its application, and to support an
environmental impact assessment, shall not be considered as proprietary or
confidential.
Following is the list of DOEs active in Pakistan. For complete list of DOEs, please refer to
Appendix III.

Table 2: Designated Operational Entities in Pakistan

Name of the DOE Details
DNV Office address
807, 8th Floor, Anum Estate
49, D.C.H.S. Block 7/8, P.E.C.H.S.
Main Shara E-Faisal
75400 Karachi
Phone:+92 221- 4390026
Fax: +92 214390028
SGS SGS Pakistan (Private) Limited
H-3/3, Sector 5, Korangi Industrial Area,
74900 Karachi
Pakistan
Phone: +92-21-35121388-95 / +92-21-
111222747
Fax: +92 21 512 1386
Bureau Veritas KARACHI
Address: House No. 177, Block 7&8,
Karachi Memon Cooperative Housing Society
PECHS, Karachi-Pakistan
Main Line: + 92 21 111 786 013
Main Fax: + 92 21 439 2713
LAHORE
House No. 334
Block A-1, Johar Town
Lahore-Pakistan
Main Line: + 92 42 520 3719/520 3720
Main Fax: +92 42 517 3446
SIALKOT
House No. 223, Unit 4,
Market Road, Model Town
Sialkot – Pakistan
Main Line + 92 52 355 7490
Main Fax + 92 52 355 7490
TUV NORD TUV NORD Pakistan
Apartment # 19, 6th Floor, Land Mark Plaza,

Jail Road, Lahore, Pakistan.
Telephone No.+92-42-35877227
Fax: +92-42-35877226

3. CDM Project Categories & Sectoral Scopes
CDM projects are classified into three major categories:

 Small-Scale
 Large Scale
 Programme of Activities
3.1 Small Scale CDM Project Activities
According to modalities and procedures for the CDM, three types of small-scale CDM
projects are possible. For the first two, there is a maximum size limit for the activity that
reduces emissions, but for the third type, there is a maximum limit on the total emission
from the project at the end of the project activity. The three types of small-scale CDM
projects are6:
I) Renewable energy project activities with a maximum output capacity equivalent

of up to 15 MWe (or an appropriate equivalent)
II) Energy efficiency improvement project activities which reduce energy
consumption, on the supply and/or demand side, by up to the equivalent of 60
GWhe per year; or
III) Other project activities that both reduce anthropogenic emissions by sources and
directly emit less than 60 thousand tons (kt) of carbon dioxide equivalent
annually.
These three types are interpreted by the Executive Board as mutually exclusive. For example
when a 60 MW wind turbine project is not eligible for type I, it cannot be eligible for type III
either, even though it emits less than 60 kt CO2.
3.2 Large Scale CDM Project Activities
The project activities which do not meet the requirements of the small scale project
activities, mentioned above, are categorized as large scale CDM project activities. In other
words the following project will be included in the large scale category:
I) Renewable energy project activities with a maximum output capacity more than
15 MWe (or an appropriate equivalent)
II) Energy efficiency improvement project activities which reduce energy
consumption, on the supply and/or demand side, more than equivalent of 60
GWhe per year; or
6
http://unfccc.int/resource/docs/cop7/13a02.pdf
CDM Project Categories & Sectoral Scopes 11

III) Other project activities that both reduce anthropogenic emissions by sources and
directly emit more than 60 thousand tons (kt) of carbon dioxide equivalent
annually.
3.3 Programme of Activities
PoA is bundling of various CDM projects into a single CDM project. PoA is a flexible
mechanism for such projects which requires validation of PoA only instead of separate
validation of each and every CDM project in the PoA.
PoA is a voluntary coordinated action by a private or public entity which coordinates and
implements any policy/measure or stated goal which leads to GHG emission reductions.
 Local/regional/national policies or standards cannot be considered as CDM project

activities, but such project activities under a PoA can be registered as a single CDM
project activity.
The private or public entity that coordinates the PoA is referred to as a

coordinating/managing entity.
The physical boundary of a PoA may extend to more than one country, i.e. a PoA can
involve CPAs (CDM Project Activities) being run in multiple countries, in which a separate
letter of approval would be required from each Party involved. Unlike bundled small-scale
project, it is possible to add new CPAs to a PoA without undertaking the validation process
afresh. No registration fee is payable on CPAs which are added subsequently to validation. A
PoA must be directed at coordinating and implementing a ―policy/measure or stated goal‖.
No clear definition is provided for these terms. However, the EB has explicitly referred to
―incentive schemes‖ and; ―voluntary programmes‖ in its definition of a PoA (EB 32, Annex
38, paragraph 1). In general, a PoA must demonstrate real, additional and measurable
emission reductions or removals attributable to the PoA. There is no technical restriction that
prevents the creation of a PoA which includes as CPAs projects which would normally be
registered as standard CDM projects.
3.4 Sectoral Scopes
The CDM-Accreditation Penal has adopted the following list of sectoral scopes, which is
based on the list of sectors and sources contained in Annex A of the Kyoto Protocol.
Table 3: List of Sectoral Scopes

Scope Number Sectoral Scope Description
1 Energy industries (renewable - / non-renewable sources)
2 Energy distribution
3 Energy demand
4 Manufacturing industries

5 Chemical industries
6 Construction
7 Transport
8 Mining/mineral production
9 Metal production
10 Fugitive emissions from fuels (solid, oil and gas)
11 Fugitive emissions from production and consumption of halocarbons and
sulphur hexafluoride
12 Solvent use
13 Waste handling and disposal
14 Afforestation and reforestation
15 Agriculture
A complete list of baseline and monitoring methodologies relating to each sectoral scope
along with the details of DOEs accredited to validate/verify a CDM project activity under a
particular scope is available at UNFCCC‘s website7.
7
http://cdm.unfccc.int/DOE/scopes.html#1

4. Eligibility Criteria for CDM Projects

CDM projects must meet certain national and project specific criteria. Brief details with
respect to each are provided below:
Project activities under the CDM must:
 be hosted by non-Annex I Parties (host countries) that have ratified the Kyoto
Protocol and established a designated national authority (DNA);
 be developed by public or private entities authorized by the relevant host Party and
Annex I Party involved in the project activity;
 promote sustainable development in the countries in which they are located;
 result in generation of emission reduction which are real, measurable, long-term, and
additional to reductions that would have occurred without the project;
 not divert funding from existing official development assistance;

 be validated by a designated operational entity (DOE) in accordance with the CDM
project eligibility and participation requirements, including the use of an approved
baseline and monitoring methodology;
 be registered by the CDM Executive Board after review by a Registration and
Issuance Team to ensure compliance with the international rules;
 once commissioned and operational, verified and certified by a DOE
 involve one or more of the greenhouse gases and be related to various
sectors/sources of activities, as shown in Table 4.
Table 4: Sectoral distribution of GHG emissions

Sector/Activity GHG Emission Sources Gases
Energy Fuel combustion Carbon dioxide (CO2)
Energy industries Nitrous oxide (N2O)
Manufacturing industries and Methane (CH4)
construction Sulphur hexafluoride (SF6)
Transport
Fugitive emissions from fuels
Solid fuels
Oil and natural gas
Other
Industrial Processes Mineral products Carbon dioxide (CO2)
Chemical industry Nitrous oxide (N2O)
Metal production Methane (CH4)
Other production Hydrofluorocarbons (HFCs)
Production of halocarbons and Perfluorocarbons (PFCs)
sulphur hexafluoride Sulphur hexafluoride (SF6)
Eligibility Criteria for CDM Projects 14

Consumption of halocarbons
and sulphur hexafluoride
Other
Solvents and Other Hydrofluorocarbons (HFCs)
Product Use Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)
Carbon dioxide (CO2)
Nitrous oxide (N2O)
Agriculture Enteric fermentation Carbon dioxide (CO2)
Manure management Methane (CH4)
Rice cultivation Nitrous oxide (N2O
Agricultural soils
Prescribed burning of savannas
Field burning of agricultural
residues
Other
Waste Solid waste disposal on land Methane (CH4)
Wastewater handling Carbon dioxide (CO2)
Waste incineration Nitrous oxide (N2O)
Other
Eligibility Criteria for CDM Projects 15

5. Key Steps Involved in CDM Project Development

The Clean Development Mechanism of the Kyoto Protocol defines a series of steps necessary to develop certified
emissions reductions (CERs). A schematic of this whole procedure of CDM followed by a general description of the key
steps involved are provided below:
Preparation Validation Approval Registration Monitoring Verification Issuance of

of PDD and CERs
Certification
Registration Issuance of CERs
Executive Board Register Project Issue CERs

(EB) Activity
Designated Issue Latter of

National Approval
Authority (DNA)
Designated Issue PDD Final Validation Verify & Certify

Operational Validation Report Report+ Letter of Monitoring Report
Entity (DOE) Approval
Project Prepare PDD Monitoring & CERs

Participant (PP) Preparing Report
Figure 1: General Cycle of CDM
Key Steps Involved in CDM Project Development 16

5.1 Preparation of Project Design Document
All stages of a project cycle are essential, the starting point being the preparation of the
Project Design Document. Its format has been standardized by international rules and it is
accompanied by specific instructions designed to guide the project participants through the
process of preparing and presenting the required information and documentation.
The PDD is the document that details the project activity in line with the procedures
established by the CDM Executive Board, covering its technical and organizational aspects,
justifying the choice of baseline and monitoring methodology and demonstrating its
Additionality.
The PDD should follow the current model established by the Executive Board available on
the website http://cdm.unfccc.int/, which also contains instructions on how it should be filled
in. Following are the mandatory stages constituting the PDD.
5.1.1 General Description of the Project Activity
The first step in preparing the PDD is to provide a general description of the project activity.
This description must contain:
 The title of the project activity,

 Description of the project activity, containing:
o the purpose of the project activity;

o details of the technology being employed and other measures that explain
how the project activity will reduce GHG emissions;
o the view of the project participants on the project activity‘s contribution to
sustainable development;
 A list of the Parties and participants involved in the project, including contact
information to be included in Annex I of the PDD;
 A technical description of the project activity:

o Location of the project activity;
o category of the project activity, in accordance with the list available on the
website of the Convention; (For details please refer to Section 3.4 Sectoral
Scopes
o the technology to be employed by the project activity, including a description
of how the necessary expertise and clean technologies will be transferred to
the host country(ies);
o the estimated amount of emission reductions over the chosen crediting
period, including annual estimates; and
o public funding of the project activity by Annex I Parties – details should be
provided in Annex 2 of the PDD.

5.1.2 Application of a baseline and monitoring methodology
This section starts with a reference of the UNFCCC approved large-scale or small-scale
methodology applicable to the project activity, its version number and validity. The choice of
the methodology with respect to type and category of the project activity and the
compliance of the proposed CDM project activity with all the
applicability conditions of the chosen methodology has to be
established by the PP. Additionality is the
requirement that the
A clear understanding of the project‘s baseline, additionality,
boundary,and leakage is essential for this stage of the PDD
greenhouse gas
and, consequently, for calculating the net GHG emission emissions after
reductions promoted by a CDM project activity; these are implementation of a
explained in following sections: CDM project activity
5.1.2.1 Identification and Description of the Baseline
are lower than those
Scenario that would have
The baseline scenario of a CDM project activity refers to the
occurred in the most
most likely scenario for anthropogenic GHG emissions that plausible alternative
would occur in the absence of the proposed project activity. scenario to the
It serves as the basis for verifying additionality (explained in implementation of
sub-section 5.1.2.2) and quantifying the CERs resulting from
the project activity. The baseline is qualified and quantified
the CDM project
based on the business-as-usual scenario. activity.
There are three possible approaches to constructing the baseline scenario. The most
appropriate for the project activity in question should be indicated and justified.
 Status quo emissions: current or historic emissions, whichever is the case.

 Market conditions: emissions from a recognized and economically attractive
technology, taking investment obstacles into consideration.
 Best available technology: the average volume of emissions from similar project
activity emissions in the five years prior to the drafting of the PDD under similar
social, economic, environmental and technological circumstances, and whose
performance is among the top 20% in its category.
5.1.2.2 Demonstration of Additionality

Project participants must demonstrate the project activity‘s additionality in a transparent and
conservative manner, allowing interested parties to rationally reproduce the project in
accordance with the scope and details presented in the PDD.
There are various means and instruments for demonstrating additionality, the most used
being the “Tool for the demonstration and assessment of additionality”, developed
by the Executive Board. There is also the “Combined tool to identify the baseline
scenario and demonstrate additionality”. Other baseline and monitoring methodologies
contain a means of demonstrating additionality for the specific cases in question. However,
project participants may decide not to use a tool and simply present their arguments

demonstrating the additionality of their project (except in cases where a specific tool is cited
as part of the adopted methodology).
One key factor in demonstrating additionality is the project‘s starting date. Evidence that the
incentive from the CDM was seriously considered in the decision to implement the project
activity is also vital.
Project activities with a starting date on or after August 2, 2008, should inform DNA and/or
UNFCCC CDM Secretariat within 6 months of the official start date of the project activity.
A step-wise application of the ―Tool for the demonstration and assessment of additionality‖
is provided below.
 The first step involves the identification of plausible baseline alternatives to the
project.
 The next step involves elimination of all the alternatives except one (which is
proposed to be the most plausible baseline scenario) in the following manner:
a) Elimination of the alternatives which are inconsistent with the applicable laws
and regulations.
b) Elimination of alternatives which face prohibitive barriers, such as investment
and technological barriers (also called barrier analysis).
c) Elimination of alternatives using investment comparison analysis
financial/economic indicators (for instance, IRR, NPV, Payback Period, etc),
the remaining alternatives are compared in terms of their economic
attractiveness; the most cost-effective alternative, with the most attractive
investment indicator is selected as the baseline scenario (the remaining
alternatives are eliminated); it is then compared with the financial indicator of
the project activity, and if the latter is less attractive than the former, the
project activity is deemed to be additional.
d) Conducting benchmark analysis; the financial indicator for the project is

compared with the publically available/company benchmark, and if the
financial indicator for the CDM project activity is less attractive than the
benchmark, the CDM project activity is considered as good candidate for
additionality;
e) Carrying out sensitivity analysis to verify the robustness of the result

obtained through investment comparison analysis or benchmark analysis
f) Finally, application of common practice analysis to conclude that the project

activity is not a common practice in the relevant region or country; if similar
activities are observed, then the fact needs to be established that essential
differences between project activity and similar activities can be explained
and justified. Otherwise the project activity is considered non-additional i.e. it
does not need CDM income for its implementation

5.1.2.3 Calculation of GHG Emission Reductions

Once the additionality of the project is established, the next step involves determination of
baseline emissions, project emissions and/or leakage as per the procedures, algorithms or
formulae as described in the applicable methodology.
The net reduction in GHG emissions is estimated in accordance with the following equation:
Net Emission Reductions = Baseline Emissions – Project Emissions – Leakage

L
The baseline and project emissions relate to those emissions under the control of the project
participants which are significant and reasonably attributable to the project activity. In this
regard, baseline and project boundaries have to be defined in the PDD in which all sources
of GHG emissions should be clearly identified.
Leakage is defined as the increase in GHG emissions occurring outside the boundary of a
CDM project which are both measurable and attributable to the project activity.
5.1.2.4 Monitoring Plan and Monitoring Parameters

This section includes specific information on how the data and parameters that need to be
monitored would actually be collected during monitoring for the project activity.
A list of parameters that are determined ex-ante for the entire crediting period is presented
in this section. These parameters include such data which will be calculated/measured only
once and will remain fixed throughout the crediting period.
A detailed description of the monitoring plan is then presented in this section which includes
the description of the operational and management structure that the project operator will
implement in order to monitor emission reductions and any leakage effects generated by the
project activity. The responsibilities for and institutional arrangements for data collection and
archiving are clearly indicated. The monitoring plan should reflect good monitoring practice
appropriate to the type of project activity. Any relevant further background information can
be provided in Annex 4.
Finally a list of all such parameters which will be monitored during the crediting period is
presented in this section with such details as the measurement methods and procedures,
including a specification which accepted industry standards or national or international
standards will be applied, which measurement equipment is used, how the measurement is
undertaken, which calibration procedures are applied, what is the accuracy of the
measurement method, who is the responsible person/entity that should undertake the
measurements and what is the measurement interval.
5.1.3 Duration of the project activity / crediting period
In this section of the PDD information is provided about starting date of the project actvity,
its expected operational life time and type of the crediting period (fixed or renewable)
chosen for the project.

Start date of the project, in general, is date of the signing contract between the project
proponent and the technology supplier. The starting date of the project, and the justification
how is it determined should be clearly mentioned in the CDM-PDD.
Expected lifetime of the project relates to technical lifetime of the project activity. The
crediting period may either be fixed for 10 years or renewable after every 7 years. In case of
renewable crediting period, the maximum length of the crediting period can be up to 21
years. Exact date of the start and termination of crediting period is also mentioned in this
section of the CDM-PDD.
5.1.4 Environmental Impacts
In this section of the PDD, a detailed assessment of the environmental impacts of the
proposed CDM project activity is provided.
In Pakistan, it is mandatory for the project proponent either to conduct an EIA

(Environmental Impact Assessment) or IEE (Initial Environmental Examination) of the
project, whichever applicable according to the scale of the project activity. The assessment
is documented in the form of a report which is submitted to provincial Environmental
Protection Agency to grant an environmental approval for the project. Brief details of the
environmental impacts as mentioned in the report, filing of the assessment report (EIA
report or IEE report), and the grant of environmental approval are provided in this section of
the CDM-PDD and these documents are provided to DOE and DNA Pakistan.
5.1.5 Stakeholders’ Comments
Stakeholders‘ consultation is a requirement of the CDM-PDD as well as of the DNA Pakistan

for the grant of Host Country Approval for the proposed CDM project activity. Stakeholders
mean the public, including individuals, groups or communities affected, or likely to be
affected, by the proposed CDM project activity or actions leading to the implementation of
such an activity. Stakeholders are invited for a consultation meeting on a given date through
advertisement in the local media (e.g. newspaper advertisement, radio announcement,
notice boards, etc). The stakeholders are briefed about the project scope, Kyoto protocol,
CDM, and environmental impacts of the project activity. Questions of the stakeholders are
answered by the project proponent, and comments and concerns of the stakeholders are
recorded (in English or local language) on the forms. The event is captured in photographs,
and minutes of the meeting are recorded as evidences of the proceedings of the meeting.
Details of the invitation procedure, summary of the comments of the stakeholders, concerns,
and conclusion are summarized in this section of the PDD. All the relevant evidences are
provided to DOE.
5.2 Project Validation
Validation is defined in 3/CMP.1, Annex, paragraph 35 as follows:

―Validation is the process of independent evaluation of a project activity by a designated

operational entity against the requirements of the CDM as set out in decision 17/CP.7, the
present annex and relevant decisions of the COP/MOP, on the basis of the project design
document.‖
The main procedure and brief detail of the validation process is given below
 Submission of PDD to the different DOEs for seeking validation offer

 Offers for validation by different DOEs
 Selection of DOE - acceptance of the most attractive offer by project participants
 DOE publishes a the PDD for GSP (Global Stakeholder Process) on CDM website
 Desk review of the PDD by DOE
 Issuance of Draft Validation Protocol by DOE containing queries (i.e clarification and
corrective action requests)
 On-Site visit of project by DOE
 FVP (First Validation Protocol) by DOE
 Response by Project Proponent on FVP, and if acceptable
 Issuance of draft validation by DOE
 Issuance of Final Validation report by DOE
Validation is the process by which the PDD is independently evaluated by a ―designated

operational entity‖ (DOE) against the requirements of the CDM. The DOE must be a third
party, separate and apart from the project developer and preparer of the PDD. Information
submitted to the DOE should include comments by the local stakeholders and a summary of
how due account was taken of any such comments, as well as an analysis of any
environmental impact of the project‘s activity.
Based on its review, the DOE issues a validation report and opinion as to the adequacy of
the PDD. The project developer/PDD consultant must respond to queries and comments to
the satisfaction of the DOE for the final validation report to be issued.
5.3 Host Country Approval
The host country approval is an important step in CDM cycle as this step gets the project
approved form the host country in which the project is being implemented. Typically the
following documentation must be submitted to the designated national authority (DNA) for
host country approval:
1. The PDD, including a description of how the project will contribute to sustainable
development.
2. If required by local law, an approved environmental impact assessment. In case of
Pakistan an NOC issued by EPA based on the assessment of the IEE or EIA report of
the project serves this purpose.
3. A stakeholder meeting report conducted by the project developer. The stakeholder
meeting is also required by UNFCC and one meeting can be conducted involving all
stakeholders to meet the criteria of both DNA and UNFCCC.

Once the DNA requirements have been satisfied, a Letter of Approval is issued for the
project.
5.4 Registration with the CDM Executive Board
Following the issuance of the Letter of Approval and a positive validation report, a request
for registration is submitted to the CDM Executive Board in the form of the validation report,
including the PDD, the written approval of the DNA and an explanation of how this takes
into account any comments received. The CDM Executive Board reviews the proposal and
may invite public comment or ask for additional information/details before rejecting or
accepting the proposal, which becomes a public document once submitted to the CDM
Executive Board. Registration is a formal acceptance by the CDM Executive Board of a
validated project as a CDM project activity and is the official recognition of the project
feasibility to generate CER.
5.5 Implementation and Monitoring
Once the project has been validated, detailed engineering activities can be undertaken in
parallel with the CDM approval process. Monitoring of emissions reductions, as specified in
the PDD monitoring plan, would then be implemented. In order to calculate the emissions
reductions, the emissions of the project activity have to be subtracted from the reference
scenario or Baseline outlined in the PDD.
5.6 Verification/Certification and Issuance of CERs
Verification is required by a DOE, separate and apart from the preparer of the PDD and the
DOE responsible for project validation (applies in case of large-scale project activities only),
in order to demonstrate that actual emissions reductions are consistent with the PDD. A
certification report is required on an annual basis to quantify the actual emissions reductions
achieved during that period. The second DOE conducts on-site inspections, reviews
monitoring results, and provides a verification report to the CDM Executive Board.
The certification constitutes a request to the CDM Executive Board for issuance of CERs
equal to the verified amount of reductions from the project. This issuance should be
considered final 15 days after the day of receipt of the request for issuance, unless issues
are raised by the CDM Executive Board or other parties involved. The requisite amount of
CERs is then deposited in the registry account of the project developer.
5.7 Sale of CERs
The process of negotiating the sale of the CERs can usually start as the PDD is being
finalized. A Term Sheet spelling out the terms of the agreement is initially prepared and later
used for drafting the so-called Emissions Reductions Purchase Agreement (ERPA). These
agreements define the amount of CERs to be transferred, the purchase price, the time
period of delivery, and other relevant conditions. Typical buyers in the emissions reductions
marketplace include World Bank‘s Prototype Carbon Fund, tenders by national governments,
brokers, and private sector buyers.

Table 5: List of CER Buyers Active in Pakistan

Serial No. Buyer Country
1. IBRD Netherlands
2. Fichtner Germany
3. Econergy UK
4. Empower New Zealand
5. Ecosecurities UK
6. First Climate Group Germany
7. Mitsubishi Japan
8. Masefield New Energies Switzerland
9. Balderrie Canada

6. Status of CDM in Pakistan

Although Pakistan became signatory to Kyoto Protocol quite early (January 11, 2005), the
growth of CDM in the industrial sector in Pakistan has been not been very promising.
According to the statistics provided on UNFCCC website8 (see fig below, last updated on
October 14, 2010) there are a total number of 2431 registered CDM project activities.
Among them, China has the largest number of registered projects (988, corresponding to a
share of 41 %), followed by India (538, corresponding to a share of 22 %) and Brazil (179,
corresponding to a share of 7 %). In contrast, Pakistan has only 9 registered CDM projects
which correspond to a low share of 0.37%
17%
2%
2%
41%
4%
5%
7%
22%
China India Brazil Mexico Malaysia Indonesia Republic of Korea Others
Figure 2: Registered project activities by host parties
Likewise, if we look at expected average annual CERs from these registered projects9 (see
fig below) China alone has a shared of 61.24 %, followed by India (11.26 %) and Brazil
(5.52%); these three countries together account for almost 78 % of the total CERs
generated so far. The CER share of Pakistan stands at 0.44 % which is almost 26 times less
than that of India.
8
http://cdm.unfccc.int/Statistics/Registration/NumOfRegisteredProjByHostPartiesPieChart.html
9 http://cdm.unfccc.int/Statistics/Registration/AmountOfReductRegisteredProjPieChart.html
Status of CDM in Pakistan 25

1%
1%
1%
1% 9%
1%
3%
5%
6%
61%
11%
China India Brazil Republic of Korea

Mexico Malaysia Chile Indonesia
Argentina Nigeria Others
Figure 3: Expected average annual CERS from registered projects by

host parties
Further analysis of all CDM projects in the pipeline (registered, at validation, at request
review stage, etc) reveal that China and India are way ahead of Pakistan in terms of
implementation of Clean Development Mechanism. Please note that the tables and charts
given below are based on the information provided in the CDM pipeline.xlsx (last updated
October 14, 2010)10, therefore, there may be a slight difference in total number of
registered projects as provided on UNFCCC website and the ones provided below
10
http://cdmpipeline.org/publications/CDMpipeline.xlsx

Table 6: Breakup of CDM Projects in China

CDM Status of the No. of CERs (t CO2/yr)
Projects Projects
Registered 969 234,529,529
Registration Request 33 6,377,643
Correction Request 37 5,680,548
Requesting Review 18 4,109,588
Under Review 19 5,174,641
Rejected 71 9,108,329
Validation Terminated 212 28,009,185
Withdrawn 11 1,517,969
Validation Negative 31 5,679,645
At Validation 1,135 158,723,052
Total 2,536 458,910,128
38%
45%
1%
8% 2%
1% 1%
1% 3%
Registered Registration Request Correction Request Requesting Review
Under Review Rejected Validation Terminated Withdrawn
Validation Negative At Validation
Figure 4: CDM projects in China

Table 7: Breakup of CDM Projects in India

CDM Status of the No. of CERs (t CO2/yr)
Projects Projects
Registered 534 43,268,184
Registration Request 9 278,165

Correction Request 12 845,634
Requesting Review 9 2,832,969
Under Review 3 1,252,648
Rejected 44 4,563,873
Validation Terminated 242 13,969,722
Withdrawn 15 1,430,292
Validation Negative 85 5,097,096
At Validation 872 83,653,961
Total 1,825 157,192,545
29%
48%
1%
1%
2%
13%
5%
1%
Registered Registration Request Correction Request Requesting Review

Under Review Rejected Validation Terminated Withdrawn
Validation Negative At Validation
Figure 5: CDM projects in India

Table 8: Breakup of CDM Projects in Pakistan

CDM Status of the No. of Projects CERs (t CO2/yr)
Projects
Registered 9 1,688,676
Registration Request 1 28,025
Correction Request 1 35,656
Requesting Review 0 0
Under Review 0 0
Rejected 0 0
Validation Terminated 1 23
Withdrawn 0 0
At Validation 14 2,198,234
Total 26 3,950,614
34%
54%
4%
4%
4%
Registered Registration Request Correction Request

Requesting Review Under Review Rejected
Validation Terminated Withdrawn At Validation
Figure 6 : CDM projects in Pakistan

3000
2500
2000
No of CDM Projects
1500
1000
500
0
Registration Correction Requesting Validation Validation
Registered Under Review Rejected Withdrawn At Validation Total
Request Request Review Terminated Negative
Pakistan 9 1 1 0 0 0 1 0 0 14 26
India 534 9 12 9 3 44 242 15 85 872 1825
China 969 33 37 18 19 71 212 11 31 1135 2536
Figure 7: Overall Comparison of Pakistan, India and China

Table 9: List of CDM Projects in Pakistan
Title of the CDM Project Activity Status CERs

Catalytic N2O Abatement Project in the Tail Gas of the Nitric Acid Plant of the Pakarab Fertilizer Ltd (PVT) in Registered 1050.000
Multan,
The 84 MWPakistan
New Bong Escape Hydropower Project, Azad Jammu and Kashmir (AJK), Pakistan Registered 218.988
Community-Based Renewable Energy Development in the Northern Areas and Chitral (NAC), Pakistan Registered 87.477
Construction of additional cooling tower cells at AES Lal Pir (Pvt.) Limited. Muzaffar Garh, Pakistan. Registered 11.179
Almoiz Bagasse Cogeneration Project Registered 23.319
Pakarab Fertiliser Co-generation Power Project Registered 119.481
ICI Polyester Co-generation Project Registered 21.486
Composting of Organic Content of Municipal Solid Waste in Lahore Registered 108.686
Waste Heat Recovery based 15 MW Power Generation Project at Bestway Cement Limited, Chakwal, Pakistan Registered 48.060
Gul Ahmed Combined Cycle Gas Turbine Project Correction request 35.656
Biogas-based Cogeneration Project at Shakarganj Mills Ltd., Jhang, Pakistan Registration Request 28.025
Fuel Switch and energy efficiency project at PWML, Pakistan At Validation 16.722
Cattle Waste Management, Landhi Cattle Colony, Karachi, Pakistan At Validation 1458.148
Grid connected combined cycle power plant project in Qadirpur utilizing permeate gas, previously flared At Validation 162.943
Waste Heat Recovery and Utilization for Power Generation at Maple Leaf Cement Factory Limited, Iskanderabad, At Validation 47.807
Pakistan
Waste Heat Recovery and Utilization for Power Generation at Lucky Cement Limited, Karachi Plant At Validation 50.548
―Waste Heat Recovery and Utilization for Power Generation at Cherat Cement Company Limited, Nowshera, At Validation 32.278
Pakistan‖
Waste Heat Recovery and Utilization for Power Generation at Lucky Cement Limited Pezu Plant At Validation 33.820
Methane avoidance project at Habib Sugar Mills Ltd. At Validation 58.253
Biomass Fuel Switch Project at Sapphire Finishing Mills Ltd, Pakistan At Validation 33.502
Reduction of Heavy Fuel Oil usage for Power Generation at Lucky Cement, Pezu, Pakistan At Validation 34.342
DHCL Gas Turbine based Cogeneration Project At Validation 31.112
DGKCC Waste Heat Recovery and Utilization for 10.4 MW Power Generation at Dera Ghazi Khan Plant At Validation 33.845
Compost from Municipal Solid Waste in Peshawar, Pakistan At Validation 143.899
Methane avoidance project at Colony Sugar Mills Ltd. At Validation 61.015
Switching of fossil fuel from Heavy Fuel Oil to Natural Gas by replacing Heavy Fuel Oil Engines (5.86 MW*4) with Validation terminated 22.622
Gas Engine (16.4 MW) at Maple Leaf Cement Factory Limited, Iskanderabad, Pakistan

It is apparent from the data presented in figure 7 that Pakistan is way lagging behind from both
China and India in each category of projects in CDM pipeline. List of CDM projects in Pakistan in
CDM pipe line has also been provided in table 8 for reference. Pakistan needs to catch up with
other developing nations in benefiting from CDM. For that local industry will have to come
forward and take the leadership.

7. Sectoral Assessment of CDM Projects in Textile and Tannery

Sectors
This section provides information on Textile and Tannery Sector regarding the areas where
potential exists for CDM project development. However, before identifying the areas where such
CDM potential exists, an overview of CDM projects by type in China and India is presented first.
7.1 CDM Projects in China and India
It is clear from the figures 8 and 9 provided below that major portion of the CDM projects (72
%) in China corresponds to renewable energy based projects (Hydro, Wind and Biomass
Energy); whereas in India biomass , wind and hydro projects constitute almost 63 % of the
total projects. Energy Efficiency Own Generation and Energy Efficiency Industry are other
categories which represent almost 16 % of the total Indian CDM projects.
1%
1%
5%
3%
24%
12%
1%
1%
1% 2%
2% 3%
43%
Afforestation Agriculture Biomass energy

Cement CO2 capture Coal bed/mine methane
Energy distribution EE households EE industry
EE own generation EE service EE supply side
Fossil fuel switch Fugitive Geothermal
HFCs Hydro Landfill gas
Methane avoidance N2O PFCs and SF6
Reforestation Solar Tidal
Transport Wind
Figure 8: CDM Projects in China by Type
Sectoral Assessment of CDM Projects in Textile and Tannery Sectors 33

22%
30%
1%
3%
1% 7%
1% 3%
1%
2% 9%
11%
2% 3%
1% 1%
Afforestation Agriculture Biomass energy
Cement CO2 capture Coal bed/mine methane
Energy distribution EE households EE industry
EE own generation EE service EE supply side
Fossil fuel switch Fugitive Geothermal
HFCs Hydro Landfill gas
Methane avoidance N2O PFCs and SF6
Reforestation Solar Tidal
Transport Wind
Figure 9: Number of CDM projects in India by type
7.2 Detailed Analysis of CDM Projects in Textile and Tannery
Following is the detail of different projects that are in CDM pipeline in Textile and Tannery
Sectors. It is worth noting that out of the 13 projects that are presented, 12 are placed in India
while only 1 is in Pakistan.
Demand-side energy efficiency programme in the ‗Humidification

Project Title
Towers‘ of Jaya Shree Textiles
Host Country India
Number of
3,393 (10 year fixed)
1 CERs
Applied
AMS-II.C.
Methodology
Current Status Registered
Brief The project activity is an energy efficiency programme comprising

Description of installation of Variable Frequency Drives (VFDs) at the motor

end of electrical drives so as to increase the energy-efficiency of
the motors in the Humidification Towers.
Barrier Analysis:
Additionality
1) Prevailing practice barrier
Criteria
2) Technological barrier
Energy efficiency and fuel switch project at Welspun India

Project Title
Limited.
Host Country India
Number of
35,131 (10 Year Fixed)
CERs
Applied
AMS-II.D.
Methodology
Current Status Registered
This project activity involves installation of an energy efficient 5.9
MW gas turbine with heat recovery steam generator (HRSG), a
6.79 MW gas engine generator with 1260 TR vapour absorption
2 chillers (VAC). These measures replace use of lower efficient
power systems which comprises of FO based Generating sets
(2*2MW, 1*4MW and 1 * 6MW) with Exhaust Gas Boiler (EGB)
Brief (1*1.5TPH, 1*2.1TPH, 1*1.6TPH) for steam and power
Description generation, FO based boilers (3*6TPH) for steam generation and
centrifugal chillers (2*500TR, 1*390 TR) for chilled water
generation. The 1260 TR Vapour Absorption Chiller will use the
exhaust heat from the gas engine for chilled water generation and
in turn replaces use of Centrifugal Chillers thereby reducing the
electricity consumption for the equivalent amount of chilled water
generation.
Additionality
Investment Barrier
Criteria
Energy Efficiency Improvement in the Cogeneration System at

Project Title
Unit - Kesoram Rayon, Kesoram Industries Limited
Host Country India
Number of
CERs
3 Applied
AMS-II.B.
Methodology
Current Status At Validation
The project activity involves the replacement of 2 existing boilers
Brief with a 40 TPH high pressure coal fired Fluidized Bed Combustion
Description (FBC) boiler and the replacement of the existing back-pressure
and condensing turbines with a 6MW extraction-cum-condensing

type turbine. This has resulted in the conversion of the existing

low pressure system (17.5 kgsc) to a high pressure system (62
kgsc). This has resulted in efficiency improvement of the
cogeneration system and has enabled the project proponent to
reduce the specific coal consumption for steam and power
generation and therefore reduced electricity import from the grid.
Direct reduction in specific coal consumption for cogeneration
system contributes to lower CO2 emissions.
Barrier Analysis:
1) Investment barrier
Additionality
2) Institutional barriers
Criteria
3) Operational barriers
4) Other barriers
Reduction in Specific Steam Consumption of Vapour Absorption

Project Title Chillers at Indo Rama Synthetics (India) Limited, Butibori, Distt-
Nagpur, Maharashtra
Host Country India
Number of
CERs
Applied
AMS-II.D.
Methodology
The purpose of the project activity is to achieve higher energy
efficiency by installation of new energy efficient Vapour
Absorption Chillers (VACs) in place of old less energy efficient
4 VACs. The new energy efficient VACs would reduce the overall
energy demand for air conditioning. In the pre-project scenario,
IRSL were operating eight numbers of VACs to cater the chilled
Brief water requirement in the fiber complex.
Description
The replacement of less energy efficient VACs with more energy
efficient VACs will reduce the specific steam consumption of VACs
and thereby reduces the overall steam demand. Since the steam
is generated by fossil fuel fired boiler, reduction in the overall
steam demand will reduce the fossil fuel consumption and
subsequently reduce the GHG emission.
Barrier Analysis:
Additionality
1) Prevailing practice barrier
Criteria
Project Title Energy efficiency and fuel switch project at GHCL Ltd.
5 Host Country India
Number of 14,741 (10 Year Fixed)

CERs
Applied
AMS-II.D.
Methodology
This project activity comprises of commissioning and operation of
a new energy efficient 5.67 MW gas turbine with Waste heat
recovery system for electricity and steam generation at the
Brief industrial facility of GHCL Ltd. The project activity will partially
Description replace the use of 1250 KVA DG set and Man B&W DG set (which
are having lower thermal efficiency in comparison with Gas
Turbine) for electricity generation and partially replace the use of
boiler for steam generation.
Barrier Analysis:
Additionality
Criteria
2) Other barrier
13.5 MW Natural Gas based package cogeneration system at

Project Title
Garden Silk Mills Ltd – PFY Division, Gujarat, India
Host Country India
Number of
CERs
Applied
AM0014
Methodology
Project activity involves installation of two natural gas based
cogeneration systems of 6.75 MW rated capacity Rolls Royce
engines each. Phase 1, installation of first 6.75 MW, Rolls Royce
6 was completed in October 2005 and phase 2 commissioning of
the 2nd 6.75 MW, Rolls Royce was completed in October 2006.
Brief
Description The project activity displaces existing HFO based engine by
Natural Gas based turbine. The project will generate 13.5 MW
power from environmentally friendly fuel - Natural Gas, by
displacing the existing HFO based engines and thereby, reducing
the Greenhouse Gas (GHG) emissions.
Barrier Analysis:
Additionality
Criteria
3) Barriers related with gas supply
4) Barriers due to prevailing practice
Natural Gas Based Power generation with waste heat recovery

7 Project Title system at Ginni Filaments Limited, Panoli, Ankleshwar, Dist.
Bharuch, India

Host Country India

Number of
CERs
Applied AMS-II.D.
Methodology AMS-III.Q.
The project activity involves captive power generation along with
the waste heat recovery systems. The project entails
implementation of five 1.364 MW capacity gas engines for power
generation. Natural gas based engines use environment friendly
technology i.e. lean burn technology for generation of power. The
technology involves the use of excess air in the combustion
process along with the fuel. The excess air reduces the
temperature of the combustion process & this reduces the amount
of oxides of nitrogen as compared to a conventional natural gas
Brief Description engines. Also availability of excess of oxygen results in efficient
combustion & more power output.
Waste heat recovery activities involve heat recovery through

exhaust of gas engines & also the engine jacket water heat
recovery. The exhaust heat recovery activity involves installation
of five-heat recovery units on the gas engines to recover the heat
from high temperature exhaust gases. Recovered heat is then
utilized for thermic fluid heating which was being heated by fossil
fuel buring the absence of project activity.
Barrier Analysis:
Additionality 1) Investment barrier
Criteria 2) Technological barrier
3) Barrier due to prevailing practice
Steam optimization by installation of double extraction condensing

Project Title
turbine at Birla Cellulosic
Host Country India
Number of
CERs
Applied
AMS-II.D.
Methodology
8 Current Status At Validation
The process power and steam requirements are met by 2*15 MW
back pressure condensing turbine of which one acts as a
standby system. Due to higher power to steam ratio,
Brief Description approximately 7 tonnes per hour (TPH) of low pressure (LP)
steam is vented out to the atmosphere. To meet the increased
demand due to expansion of the fibre plant from the existing
175 to 350 TPD, a new double extraction cum condensing

turbine of 11.8 MW capacity is installed. This will also reduce the

steam venting by 7 TPH and thereby results in a coal savings of
approximately 6500 tons per year. Installation of double
extraction condensing turbine in synchronization with existing
back pressure turbine reduces the steam consumption from
191.95 TPH to 188.67 TPH. Thus reducing the coal
consumption by approximately 20 TPH and hence reduction
in GHGs to a considerable extent.
Barrier Analysis:
Additionality
Criteria
Efficient power generation using gas engine technology in textile

Project Title
industry
Host Country India
Number of
34,210 and 18,977 (10 year fixed)
CERs
Applied AMS-II.D.
Methodology
9 The project activity entails implementation of energy efficient
measures at at Arvind Intex (AI) and Arvind Cotsyn (AC)
spinning units by installing energy efficient gas engines that
Brief Description utilize natural gas (NG) for efficient power generation thereby
substituting fossil fuel use with cleaner gaseous fuel (NG) use.
Thus the primary objective of the project activity is to use cleaner
fuel in an efficient operating system and reduce GHG emissions.
Barrier Analysis:
Additionality
Criteria
Project Title Energy efficiency measures at Maral Overseas Limited, INDIA

Host Country India
Number of
CERs
Applied AMS-II.D.
Methodology
10 Current Status At Validation
Maral Overseas Limited (MOL) implemented energy efficiency
measures in its several industrial facilities.
The measures include:
Brief Description
 Use of energy efficient compressor having double stage
screw
 Use of submersible pumps to supply water from the river,

Narmada, to the plant

 Use of the hydro pneumatic pressure booster system
with set of three small pumps and VFD
 Replacement of pumps at duty point with the energy
efficient Grundfos pumps in Humidification plants of
spinning units.
 Utilization of waste hot water from various locations
like effluent, compressor, finishing machine, etc.
 Introduction of system software, Olympian, which helps in
transfer and translation of the data between different
systems that helps in elimination of errors, provides
central link between different systems and facilitates
quick and efficient information exchange in order to
achieve the reduction in extended dying cycle, water,
energy, dyestuff, chemical and steam consumption.
 Power distribution system incorporating dry type
transformers, bus trunking in place of cable, position of
distribution system near to the load, and automatic
power factor correction system.
 Machines with variable speed drive and continuous
production line with latest features of auto doffing.
Additionality Barrier Analysis:

Criteria 1) Barrier due to prevailing practice
Project Title Baracol‘s Tannery Fuel Switch Project

Host Country India
Number of
5,650 (7 year)
CERs
Applied
AMS-I.C.
Methodology
11 The Project consists in the retrofitting boilers that used to burn
Fuel Oil by retrofitted boilers that burns renewable biomass
Brief Description (eucalyptus firewood from renewable energetic forests), for
heating water, at the leather treatment facilities of Baracol
Courous.
Barrier Analysis:
Additionality 1) Investment barrier
Criteria 2) Technological barrier
Project Title Gul Ahmed Combined Cycle Gas Turbine Project

12
Host Country Pakistan

Number of
35,656 (7 year)
CERs
Applied
AMS-II.D
Methodology
The Project is located in unit 1 of Gul Ahmed Textiles Mills
Limited, which provides steam and electricity to units 1, 2 and
3, consisting of textile manufacturing, covering, spinning and wet
processing of fabric. Steam is currently supplied by three boilers
running on natural gas, and electricity is supplied by a mix
of gas-fired and oil-fired engines. This system will be replaced
Brief Description by a combined cycle gas turbine (CCGT) system. A 10 MW gas
turbine will be installed; its exhaust gases will be fed into a waste
heat recovery boiler to generate steam for the process, and for a
steam turbine that will generate additional electricity (therefore
bringing total electrical capacity above 10 MW). Steam for the
process will also be extracted from the steam turbine.
Barrier Analysis:
Additionality
Criteria
2) Investment Barrier
7.3 Potential Areas for CDM Intervention
Based on the detailed analysis presented in sections 7.1 and 7.2, the following areas are
identified for CDM intervention:
7.3.1 Energy Efficiency Improvements
o Replacement of existing low pressure boilers with high pressure boilers

o Replacement of existing back-pressure and condensing turbines with extraction-
cum-condensing type turbine
o Installation of Variable Frequency Drives
o Installation of Waste Heat Recovery Steam Generator (HRSG)
o Replacement of High Efficiency Vapor Absorption Chillers with inefficient Vapor
Compression Chiller
o Installation of Vapor Absorption Chillers (VAC) on Waste Heat
o Use of energy efficient compressor having double stage screw
o Use of high efficiency pumps to supply water
o Use of the hydro pneumatic pressure booster system

o Utilization of waste hot water from various locations like effluent, compressor,
finishing machine, etc.
o System Automation like introduction of system software, which helps in transfer and
translation of the data between different systems that helps in elimination of errors,
provides central link between different systems and facilitates quick and efficient
information exchange in order to achieve the reduction in extended dying cycle,
water, energy, dyestuff, chemical and steam consumption.
o Improvement in power distribution system by incorporating dry type transformers,
bus trunking in place of cable, position of distribution system near to the load,
and automatic power factor correction system etc
7.3.2 Cogeneration
o High pressure boilers based cogeneration: Natural gas or biomass based cogeneration
in industries with high pressure boilers and power export to grid
7.3.3 Fossil fuel switch, from high carbon intensive to low carbon intensive
o Replacing HFO Based Boilers with natural gas boilers

o Replacing Fossil Fuel Fired Boilers with biomass boilers using rice husk, corn cob,
wood chips etc. as fuel
7.3.4 Steam optimization by condensing
o Installation of double extraction cum condensing turbine to optimize the steam

wastage
7.3.5 Process Optimization
o Reduction in steam consumption for the crystallization of glauber salt of sodium

sulphate (Na2SO4) by the installation of Acid Absorption Crystallizer (AAC) technique,
which uses less steam as compared to Horizontal Continuous Crystallizer (HCC).
7.3.6 Solid Waste Management
o Landfill Composting of Leather Waste
o Sludge Handling of Combined Effluent Treatment Plant

7.4 Causes for Low Participation of Industrial Sector of Pakistan in the CDM
There are manifold causes for low participation of the industrial sector of Pakistan in the CDM.
These are enumerated below
7.4.1 Lack of awareness of industrial sector about CDM
Although Pakistan ratified Kyoto Protocol quite early in January 2005, majority of the industrial
owners are still not aware of various emission reduction schemes and emission trading
programs under the Kyoto Protocol and their environmental and financial benefits
Although few industrial owners have general awareness about CDM, they still do not know
about the intricacies and modalities of CDM registration process such as establishing prior CDM
awareness, seriousness of CDM consideration and above all additionality. Such project
proponents, who do not seek the assistance of an experienced CDM consultant, normally end
up developing projects which are rejected even at pre-validation stage.
7.4.2 Lack of financial incentives from the government
The government does not provide any financial incentives (e.g. tax rebates, subsidies, attractive
tariffs) for the promotion of CDM related projects in Pakistan.
7.4.3 Dearth of Institutional Guidance
Institutional guidance both from the government and industrial associations plays an important
role in the successful development of CDM related project activities. Unlike India and China,
there are no specific statistics, sectoral studies and guidelines available for the industrial sector
in Pakistan which provide essential information with regard to current practices in the region,
financial indicators for decision making process, and opportunities which can be realized as CDM
project activities.
7.4.4 Long Timeframe for CDM project Development
Timeline of CDM project registration is very long. A project proponent has to go through
processes of PDD development, DOE selection, on-site validation, responding to Validation
Protocols, waiting for completeness check, and Global Stakeholders‘ Consultation. Such
methodology, though very transparent, yet takes approximately up to 2 years for a project
proponent to get the project registered as CDM project. Furthermore, verification, issuance,
and emission trading process may add up more than one year into it, which means the project
participant shall start getting CDM income after approx 2.5 of starting date of the project
activity. During that phase, the project proponent has to bear all the project construction,
project development, and validation costs and at times it acts as a great hurdle for project
developers to participate in CDM.

7.4.5 High Costs of Validation
Over the years the costs for validation of CDM project activities have increased a lot. For small-
scale project activities they range between 20,000 to 30,000 EUROs and for large scale 30,000
to 40,000 EUROs. These high costs can stall CDM decision making process; especially in those
cases where total number of estimated emission reductions (ERs) associated with the CDM
project activity is less than 7,000 tCO2/yr.
Different measures in textile and tannery sectors that can be adopted for CDM claims are:
7.5 Measures Proposed to Boost CDM in Industrial Sector of Pakistan
Keeping in view the causes for low participation of industrial sector in CDM, the following
measures are suggested to accelerate the development of CDM in Pakistan
7.5.1 Create Awareness about CDM at the Private, Public and Policy Level
 In this regard a comprehensive CDM awareness campaign, consisting of workshops,

seminars, multimedia advertisements, etc, needs to be launched by DNA Pakistan which
creates awareness among, Project Proponents, Project Developers, Industry Owners,
Industry Associations, representatives from EPA and other relevant government
authorities and ministries.
 Local CDM consultants, DOEs and CER buyers should also be invited to join the
campaign. They can help disseminate CDM related knowledge in an effective manner.
 Besides assistance can also be sought from national and international organizations for
the development of CDM in Pakistan.
7.5.2 Provide Financial Incentives to CDM Project Proponents
In order to promote CDM in Pakistan, the government should:
 Provide tax rebates

 Instruct financial institutions to provide CDM related loans at attractive rates
 Waive duties on import of CDM related technology
 Provide attractive tariffs for grid-connected CDM project activities
 Provide funding for small size CDM projects to offset high validation costs
7.5.3 Develop Institutional Studies and Guidelines
The relevant government bodies, ministries and industrial associations should actively get
involved to develop:
 Sectoral studies elaborating key statistics of the sector, the status of technologies
prevalent in the sector and the kind of CDM initiatives that can be taken.

 Public and sector specific benchmarks for decision making process of a CDM project
activity. Please note that for financial additionality of a CDM project there should be
either a publicly available benchmark (such as commercial lending rate) or sector
specific benchmark which can be clearly validated by the DOE. So far no such
benchmarks exist, except for the public sector Hydropower/Thermal projects or private
sector IPPs.
7.5.4 Properly Plan Your CDM Project
Although CDM projects can take considerable time to get registered as internal or external
delays may occur during any phase of the project, the overall time to accomplish these projects
can be minimized through efficient planning. Some of the crucial steps to be taken in this
regard are summarized below:
 Conduct financial feasibility or barrier analysis of the project to see whether it is

additional or not
 Select the applicable UNFCCC approved methodology
 Decide whether you can develop the CDM project on your own, otherwise hire the CDM
consultant at an early stage
 Develop project idea note for the project
 Intimate the CDM secretariat and DNA Pakistan about the start date of the project
activity
 Conduct local stakeholder meeting and environmental examination at an early phase
and go for Host Country Approval
 Arrange all appropriate evidences regarding historical data, project activity data to
smooth the validation and registration process
 Develop Project Design Document and go for validation right away
 Choose the validator who has the requisite expertise in the sectoral scope to which the
project activity belongs.

Appendix-I
Annex I Countries
1 Australia
2 Austria
3 Belarus
4 Belgium
5 Bulgaria
6 Canada
7 Croatia
8 Czech Republic
9 Denmark
10 European Economic Community
11 Estonia
12 Finland
13 France
14 Germany
15 Greece
16 Hungary
17 Iceland
18 Ireland
19 Italy
20 Japan
21 Latvia
22 Liechtenstein
23 Lithuania
24 Luxembourg
25 Monaco
26 Netherlands
27 New Zealand
28 Norway
29 Poland
30 Portugal
31 Romania
32 Russian Federation
33 Slovakia
34 Slovenia
35 Spain
36 Sweden
Appendix-I 46
37 Switzerland
38 Turkey
39 Ukraine
40 United Kingdom of GreatBritain and Northern Ireland
41 United States of America
Annex II Countries
1 Australia
2 Austria
3 Belgium
4 Canada
5 Denmark
6 European Economic Community
7 Finland
8 France
9 Germany
10 Greece
11 Iceland
12 Ireland
13 Italy
14 Japan
15 Luxembourg
16 Netherlands
17 New Zealand
18 Norway
19 Portugal
20 Spain
21 Sweden
22 Switzerland
23 United Kingdom of Great Britain and Northern Ireland
24 United States of America
Non Annex I Counties
1 Afghanistan
2 Albania
3 Algeria
4 Angola
5 Antigua and Barbuda
6 Argentina
Appendix-I 47
7 Armenia
8 Azerbaijan
9 Bahamas
10 Bahrain
11 Bangladesh
12 Barbados
13 Belize
14 Benin
15 Bhutan
16 Bolivia
17 Bosnia and Herzegovina
18 Botswana
19 Brazil
20 Brunei Darussalam
21 Burkina Faso
22 Burundi
23 Cambodia
24 Cameroon
25 Cape Verde
26 Central African Republic
27 Chad
28 Chile
29 China
30 Colombia
31 Comoros
32 Congo
33 Cook Islands
34 Costa Rica
35 Cuba
36 Cyprus
37 Côte d'Ivoire
38 Democratic People's Republic of Korea
39 Democratic Republic of the Congo
40 Djibouti
41 Dominica
42 Dominican Republic
43 Ecuador
44 Egypt
45 El Salvador
46 Equatorial Guinea
47 Eritrea
Appendix-I 48
48 Ethiopia
49 Fiji
50 The former Yugoslav Republic of Macedonia
51 Gabon
52 Gambia
53 Georgia
54 Ghana
55 Grenada
56 Guatemala
57 Guinea
58 Guinea-Bissau
59 Guyana
60 Haiti
61 Honduras
62 India
63 Indonesia
64 Iran (Islamic Republic of)
65 Iraq
66 Israel
67 Jamaica
68 Jordan
69 Kazakhstan
70 Kenya
71 Kiribati
72 Kuwait
73 Kyrgyzstan
74 Lao People's Democratic Republic
75 Lebanon
76 Lesotho
77 Liberia
78 Libyan Arab Jamahiriya
79 Madagascar
80 Malawi
81 Malaysia
82 Maldives
83 Mali
84 Malta
85 Marshall Islands
86 Mauritania
87 Mauritius
88 Mexico
Appendix-I 49
89 Micronesia (Federated States of)

90 Mongolia
91 Montenegro
92 Morocco
93 Mozambique
94 Myanmar
95 Namibia
96 Nauru
97 Nepal
98 Nicaragua
99 Niger
100 Nigeria
101 Niue
102 Oman
103 Pakistan
104 Palau
105 Panama
106 Papua New Guinea
107 Paraguay
108 Peru
109 Philippines
110 Qatar
111 Republic of Korea
112 Republic of Moldova
113 Rwanda
114 Saint Kitts and Nevis
115 Saint Lucia
116 Saint Vincent and the Grenadines
117 Samoa
118 San Marino
119 Sao Tome and Principe
120 Saudi Arabia
121 Senegal
122 Serbia
123 Seychelles
124 Sierra Leone
125 Singapore
126 Solomon Islands
127 Somalia
128 South Africa
129 Sri Lanka
Appendix-I 50
130 Sudan
131 Suriname
132 Swaziland
133 Syrian Arab Republic
134 Tajikistan
135 Thailand
136 The former Yugoslav Republic of Macedonia
137 Timor-Leste
138 Togo
139 Tonga
140 Trinidad and Tobago
141 Tunisia
142 Turkmenistan +A168
143 Tuvalu
144 Uganda
145 United Arab Emirates
146 United Republic of Tanzania
147 Uruguay
148 Uzbekistan
149 Vanuatu
150 Venezuela (Bolivarian Republic of)
151 Viet Nam
152 Yemen
153 Zambia
154 Zimbabwe
Appendix-I 51
Appendix-II: Contact Information of Pakistan DNA
Mr. Jawed Ali Khan.

Director General (Environment)/ Focal Person, Designated National Authority- Pakistan. Ministry
of Environment, Government of Pakistan.
4th Floor, Local Government Building, Sector G- 5/ 2, Islamabad, PAKISTAN.
Phone: +92-51-9205622, Fax: +92-51- 9207425
Email: focalpointdna@cdmpakistan.gov.pk, jawedalikhan@hotmail.com.
Mr. Momin Ali Agha.

Head (CDM Cell) / DS (CC), Ministry of Environment, Government of Pakistan.
5th Floor, Local Government Building, Sector G- 5/ 2,Islamabad, PAKISTAN.
Phone: +92-51-9245565, Fax: +92-51- 9245565
Email : m.agha68@gmail.com , momin_agha@hotmail.com
Mr. Syed Amjad Hussain.

CDM Expert (Agriculture and Forestry). Ministry of Environment, Government of Pakistan.
4th Floor, ENERCON Building, Sector G- 5/ 2, Islamabad, PAKISTAN.
Phone: +92-51-9205510, Fax: +92-51- 9207425
Email : s.amjad.hussain@cdmpakistan.gov.pk , hydroman_amji@yahoo.com
Mr. Intsar Ali Khan.

IT Expert / Web Administrator. Ministry of Environment, Government of Pakistan.
Phone: +92-51-9205510, Fax: +92-51- 9207425
Email : intsar@cdmpakistan.gov.pk , ranaintsar@gmail.com
Mr. Abdul Hye Agha.

Communications Officer. Ministry of Environment, Government of Pakistan.
Phone: +92-51-9205510, Fax: +92-51- 9207425
Email : hye@cdmpakistan.gov.pk, mailhye@gmail.com
Appendix-II: Contact Information of Pakistan DNA 52

Appendix-III: List of Accredited Designated Operational Entities

(DOEs)
Entity Sectoral scopes for Contact Detail

validation
E-0001 Japan Quality Assurance City (county): Tokyo
Organisation (JQA) Country: Japan
Postal Code: 100-8308
Postal Address: 2-5-2, Marunouchi Chiyoda-Ku
www.jqa.jp
E-0002 JACO CDM., LTD (JACO) City (county): Minato-ku, Tokyo
Country: Japan
Postal Address: 2-2-19 Akasaka
http://www.jaco-cdm.com/
E-0003 Det Norske Veritas City (county): Hovik
Certification AS (DNV) Country: Norway
Postal Code: N-1322
Postal Address: Veritasvegen
http://www.dnv.com/
E-0005 TÜV SÜD Industrie Service City (county): Munich
GmbH (TÜV SÜD) Country: Germany
Postal Code: 80686
Postal Address: Westendstrasse 199
http://www.tuev-sued.de/
E-0006 Deloitte Tohmatsu City (county): Chiyoda-ku, Tokyo
Evaluation and Country: Japan
Certification Organization Postal Code: 100-0005
Co., Ltd. (TECO) (Deloitte- Postal Address: Shin Tokyo Building, 3-3-1
TECO) Marunouchi
www.tohmatsu.com
E-0007 Japan Consulting Institute City (county): Tokyo
(JCI) Country: Japan
Postal Address: Sumitomo Fudosan Kudanshita
Bldg. 3F Kanda Jinbocho 3-5 Chiyoda-ku
http://jci-plant.or.jp
E-0009 Bureau Veritas City (county): London
Certification Holding SAS Country: United Kingdom of Great Britain and
(BVCH) Northern Ireland
Postal Code: SE1 0ES
Postal Address: Great Guildford House, 30 Great
Guildford Street
http://www.bureauveritas.com
E-0010 SGS United Kingdom Ltd. City (county): Camberley, Surrey
(SGS) Country: United Kingdom of Great Britain and
Appendix-III: List of Accredited Designated Operational Entities (DOEs) 53

Northern Ireland
Postal Code: GU15 3EY
Postal Address: SGS House 217-221 London Road
http://www.uk.sgs.com
E-0011 Korea Energy City (county): Kyonggi-do
Management Corporation Country: Republic of Korea
(KEMCO) (KEMCO ) Postal Code: 448-994
Postal Address: 1157, Pungdukchun2-dong, Suji-
gu, Yongin-si
http://www.kemco.or.kr
E-0013 TÜV Rheinland Japan Ltd. City (county): Yokohama
(Formerly TUV Industrie Country: Japan
Service GmbH - TUV Postal Code: 22-0033
Rheinland Group) (TUEV Postal Address: Shin Yokohama Daini Center Bldg.
Rheinland) 3-19-5, Shin Yokohama Kohaka-ku
http://www.tuv.com
E-0016 ERM Certification and City (county): London
Verification Services Ltd. Country: United Kingdom of Great Britain and
(ERM CVS) Northern Ireland
Postal Code: EC3A 8AA
Postal Address: 2nd Floor, Exchequer Court, 33 St
Mary Axe
http://www.ermcvs.com
E-0021 Spanish Association for City (county): Madrid
Standardisation and Country: Spain
Certification (AENOR) Postal Code: E-28004
Postal Address: C/Génova, 6
www.aenor.es
E-0022 TÜV NORD CERT GmbH City (county): Essen
(Former RWTÜV Systems Country: Germany
GmbH) (TÜV Nord) Postal Code: D-45141
Postal Address: Langemarckstrasse 20
www.tuev-nord.de
E-0023 Lloyd‘s Register Quality City (county): Coventry
Assurance Ltd. (LRQA) Country: United Kingdom of Great Britain and
Northern Ireland
Postal Code: CV34FJ
Postal Address: Hiramford Middlemarch Office
Village Siskin Driv
www.lrqa.com
E-0024 Colombian Institute for City (county): Bogota
Technical Standards and Country: Colombia
Certification (ICONTEC) Postal Address: Calle 53 58-33
www.icontec.org.co
E-0025 Korean Foundation for City (county): Seoul
Quality (KFQ) Country: Republic of Korea
Postal Address: 13 Fl., Woolim Lion's Valley B

Building 371-28 Gasan-dong, Geumcheon-Gu

www.kfq.or.k
E-0027 Swiss Association for City (county): Zollikofen
Quality and Management Country: Switzerland
Systems (SQS) Postal Code: CH-3052
Postal Address: Bernstrasse 103
www.sqs.ch
E-0034 China Environmental City (county): Beijing
United Certification Center Country: China
Co., Ltd. (CEC) Postal Code: 100029
Postal Address: No. 1 Yuhuinanlu, Chaoyang
District
http://www.sepacec.com/cecen/
E-0037 RINA S.p.A. (RINA) City (county): Genova
Country: Italy
Postal Code: 16128
Postal Address: Via Corsica 12
http://www.rina.org.uk/page757.html
E-0038 SIRIM QAS City (county): Shah Alam Selangor Darul Ehsan
INTERNATIONAL Country: Malaysia
SDN.BHD (SIRIM) Postal Code: 40911
Postal Address: Building 4, Sirim Complex No.1,
Persiaran Dato'Menteri Section 2
http://www.sirim-qas.com.my/
E-0039 Korean Standards City (county): Seoul
Association (KSA) Country: Republic of Korea
Postal Address: 701-7, Yeoksam-Dong, Gangnam-
Gu
www.ksa.or.kr
E-0040 Environmental City (county): Incheon
Management Corp. (EMC ) Country: Republic of Korea
Postal Address: Environmental Research Complex,
Gyeongseo-Dong, Seo-Gu
www.emc.or.kr
E-0041 Japan Management City (county): Minatok-ku, Tokyo
Association (JMA) Country: Japan
Postal Address: 3-1-22, Shiba-koen
www.jma.or.jp
E-0042 Germanischer Lloyd City (county): Hamburg
Certification GmbH (GLC) Country: Germany
Postal Code: 20457
Postal Address: Brooktorkai 18
www.glc.de
E-0044 China Quality Certification City (county): Beijing
Center (CQC) Country: China

Postal Code: 100070

Postal Address: Section 9, No. 188 Nansihuan (the
South Fourth Ring Road) Xilu (West Road)
www.cqc.com.cn
E-0045 Ernst & Young Associés City (county): Neuilly-Sur-Seine
(France) (EYG) Country: France
Postal Code: 92576
Postal Address: 41 Rue Ybry
www.ey.com

Clean Development Mechanism For Textile Processing and Tannery Sector of Pakistan

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Clean Development Mechanism For Textile Processing and Tannery Sector of Pakistan

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CLEAN DEVELOPMENT

MECHANISM FOR TEXTILE

SCI-Pak: Sustainable and Cleaner Production

This Project is Funded By the European Commission

1. Background of Clean Development Mechanism ......................................................... 1

CDM - Clean Development Mechanism

1. Background of Clean Development Mechanism

Background of Clean Development Mechanism 1

1.1 Kyoto Protocol

 Clean Development Mechanism (CDM)

1.2 Clean Development Mechanism (CDM):

Background of Clean Development Mechanism 2

respect of the reductions achieved

1.2.1 Rationale of CDM

1.2.2 Benefits of CDM for Pakistan

Background of Clean Development Mechanism 3

For a developing country like Pakistan, the CDM can:

Specifically, the CDM can contribute to Pakistan‘s sustainable development objectives

 Transfer of technology and financial resources;

Background of Clean Development Mechanism 4

1.3 Joint Implementation (JI)

1.4 International Emissions Trading (IET)

Background of Clean Development Mechanism 5

2. Key Players involved in a CDM Project Activity

A typical list of project participants to a CDM project activity includes:

The role of the project participants is to:

 Develop Project Design Document (including Additionality assessment and monitoring

2.2 CDM Executive Board

The CDM modalities and procedures

Key Players involved in a CDM Project Activity 6

 Accredit Designated Operational Entities(DEOs / Validators)

2.3 Designated National Authority (DNA)

2.3.1 Responsibilities of DNA

2.3.2 DNA of Pakistan

Key Players involved in a CDM Project Activity 7

 To act as the national focal point for the CDM program;

Key Players involved in a CDM Project Activity 8

2.4 Designated Operational Entity (DOE)

A designated operational entity performs following functions:

1. Validate proposed CDM project activities;

Key Players involved in a CDM Project Activity 9

Table 2: Designated Operational Entities in Pakistan

Apartment # 19, 6th Floor, Land Mark Plaza,

Key Players involved in a CDM Project Activity 10

3. CDM Project Categories & Sectoral Scopes

CDM projects are classified into three major categories:

3.1 Small Scale CDM Project Activities

I) Renewable energy project activities with a maximum output capacity equivalent

3.2 Large Scale CDM Project Activities

CDM Project Categories & Sectoral Scopes 11

3.3 Programme of Activities

 Local/regional/national policies or standards cannot be considered as CDM project

The private or public entity that coordinates the PoA is referred to as a

3.4 Sectoral Scopes

Table 3: List of Sectoral Scopes

CDM Project Categories & Sectoral Scopes 12

CDM Project Categories & Sectoral Scopes 13

4. Eligibility Criteria for CDM Projects

Project activities under the CDM must:

 not divert funding from existing official development assistance;

Table 4: Sectoral distribution of GHG emissions

Eligibility Criteria for CDM Projects 14

Eligibility Criteria for CDM Projects 15