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Climate Change Division, Government of Pakistan is the Designated National Authority for Clean Development Mechanism in Pakistan

 

   Memorandum of Understanding (MoU) has signed between Ministry of Environment and    Japan Bank for International Cooperation on Mutual Understanding.

 

   Background.

 
Ministry of Environment has signed a Memorandum of Understanding (MoU) on CDM with Japan Carbon Finance Ltd through Japan Bank for International Cooperation on 7th July 2008. The MoU aims at mutual cooperation to promote Clean Development Mechanism in Pakistan.

 

 Objectives of MoU.

 

The objective of this Memorandum of Understanding (MoU) is to facilitate Japanese investors and Japan Carbon Fund (JCF), to purchase Certified Emission Reductions (CERs) from investment in Clean Development (CDM) projects in Pakistan, through the Japan Bank for International Cooperation (JBIC). The MoU enables Pakistan to consult JBIC for exchanging information for promotion of projects under the CDM.

 

 Activities Envisaged in MoU.

 

JCF and JBIC will cooperate with Ministry of Environment in development of domestic institutional capacities to enable Pakistan to develop, manage and monitor CDM projects and will promote the development and transfer of environment friendly technologies to Pakistan, in order to provide maximum environmental benefits while complementing the social, economic and technical settings in the country.

 

 Expected Benefits.

 

Signing of this MoU is expected to promote investment from Japan in carbon finance activities in Pakistan in priority areas of energy, rural electrification and forestry etc. That will help in promotion of CDM process in Pakistan.

 
JBIC will undertake measures to enhance the value of Certified Emission Reductions that are generated through Japanese financing, by reducing risk through market- based approaches (e.g. portfolios, insurance and guarantees) so that reasonable returns can be secured and a secure carbon market is developed in Pakistan.