Carbon trade investment to fetch billions
The National (PNG), Copyright 2000
November 3, 2000
BY HARLYNE JOKU
PNG can benefit from a new global investment called the carbon credit trade worth US$ 15 billion a year globally by next year, a World Bank organised workshop on Clean Development Mechanism (CDM) was briefed yesterday.
The Director of the Office of Environment and Conservation Dr Wari Iamo said the carbon credit trade is a new and exciting concept where carbon sinks (forests and corals) will be traded between developing countries like PNG with high natural biodiversity in forests and coral reefs, and, the industrial countries.
Dr Iamo said the carbon credit trade has been made possible under the Kyoto Protocol of which PNG is a signatory to The Kyoto protocol a binding international treaty that stipulates actions to be taken by nations to combat global climate change. It is signed by 84 countries of the world.
Dr Iamo said carbon sinks referred to forests and corals which were natural elements that effectively absorbed carbon dioxide and other gases in the air which were contributing to global warming. He said the sinks are important because assist in the absorption of GHGs (Greenhouse Gases). This helps lessen global warming and the pace of the rise in sea level. GHGs covers six gases, including carbon dioxide and methane.
Dr Iamo was speaking to participants at the national Clean Development Mechanism (CDM) workshop which has been in progress for two days at the Islander Travelodge.
Coordinator of the workshop, World Bank sponsored Eco Securities representative Gerald Kohn said yesterday that the carbon credit trade was worth US$15 billion a year globally.
Mr Kohn told The National that depending on the different locations and content of forest carbons in PNG, it could be worth between US$15 per tonne. He said one hectare of forest represents from 100 to 120 tonnes. PNG has a total forest cover of 46,000 hectares according to forestry figures which could fetch millions of kina
He said benefits of the CDM and carbon credit trade for PNG would be improvements in waste management and foreign exchange improvement.
Dr Iamo added that PNG should be mindful of this potential source of investment and take appropriate steps to obtain the benefits. He said the establishment of carbon sinks through plantation and degraded forest restoration projects could bring worthwhile economic and environmental benefits to PNG.Dr Iamo said that a commercial point of view, a market for carbon credits will stimulate the establishment of new forests. Conservation forests would be able to earn revenue from carbon and traded credits. Production forests would benefit from cash flow during the early stages of forest growth, especially where long periods without revenue have acted as an impediment to forestry investment, Dr Wari said.
Participants of the workshop included officers from the Office of Environment and Conservation, Department of Planning and Monitoring, Attorney General, Petroleum and Energy, Agriculture and Livestock, Forests, Fisheries, Foreign Affairs and Investment Promotion Authority, UPNG, the Australian government, the World Bank and United States based Eco Securities.