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Environmental Law
Kyoto Protocol And Its Implementations In Pakistan
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KYOTO PROTOCOL AND ITS IMPLEMENTATION IN PAKISTAN;
HURDLES AND EXPECTATIONS
Introduction
The Kyoto Protocol is an international agreement on reducing Greenhouse gases emissions
which were adopted on 11 December 1997 in the city of Kyoto, Japan. Global warming has been
a matter of great concern for all the human beings because of the risk it poses to life on planet
earth and especially to that of the human life. To cope with this problem, UNO (United Nations
Organization) forced special emphasis on Environment related research in the late 1980s and a
special framework was adopted in 1992 in the Headquarters of United Nations which is called as
UNFCCC.
Kyoto Protocol was an extension of this UNFCCC (United Nations framework convention on
climate change) which restricts annex 1 countries (Developed and Industrialized countries) from
producing Greenhouse gases emissions above a certain limit. There is also a second category of
state parties called as Annex 2 countries (Developing countries and economies in transition).
These Greenhouse gases mainly consist of Carbon dioxide (CO2), Methane and 4 other gases.
The Kyoto Protocol was fully implemented on 16, 2005 with the ratification of Russia which
resulted in the approval of countries having total emissions up to 60%. However, the United
States of America which produces more than 25% of Worldwide Greenhouse Gases emissions
didn’t ratify this protocol along with Australia which also opted-out.
Countries with Greenhouse gases emission targets can achieve their targets by reducing their
own emissions and can go for two alternative strategies.
Kyoto Targets and Strategy
It is based on two mechanisms:
1. Joint Implementation or (JI)
2. Clean Development Mechanism or (CDM)
Joint Implementation (JI) involves reduction that arises from project investment in other
countries with their own Kyoto emission targets.
Clean Development Mechanism (CDM) involves emission reducing arising from project
investment in developing countries which do not have their own Kyoto emission targets. These
mechanisms are based on the principle that no matter where the gases come from the impact on
environment is same, and the reduction in emissions should come from the places where it will
cost the least.
Facts:
192 parties have ratified the protocol. The United States has not; it dropped out in 2001.
The protocol mandated that 37 industrialized nations plus the European Community cut their
greenhouse gas emissions. Developing nations were asked to voluntarily comply.
2 | P a g e
More than 100 developing countries, including China and India, were exempted from the treaty.
The treaty could not go into effect until at least 55 countries, accounting for 55% of the world's
emissions in 1990, ratified it.
The signatories agreed to cut their country's emissions to 5% below 1990 levels between 2008
and 2012.
The treaty also established an international trading system, which allows countries to earn credits
toward their emission target by investing in emission cleanups outside their own country.
According to the Global Carbon Atlas, the largest contributors of greenhouse gases in 2016 were
China and the United States.
The MajorAccomplishment:
The major accomplishment of the Kyoto Protocol is bringing awareness to the fact that we need
to reduce our greenhouse gas emissions and protect our environment. Even if the goals of the
Protocol are not met, it will have been a great starting point. The Protocol is helping the world
work together to protect our planet. It show that many countries are serious about environmental
protection and show others that need to be less selfish and focus on what’s really important: the
protection of Earth.
Kyoto Protocol and Pakistan
Now if we talk about Pakistan, it is basically a developing country with very low Greenhouse
gases emissions ratio of 0.3% to 0.4% compared to other countries and hence there is no strict
binding on Pakistan to reduce its Greenhouse gases emissions but still the government is
pursuing an agenda to reduce emissions for the benefit of its own people. One important sector
that should be emphasized is the alternative energy sector because of the ongoing energy crisis in
the country. Over the period from July 1993 to June 1994, Pakistan's energy sector was by far the
highest contributor to CO2 emissions, with a share of 81% of total CO2 emissions (Pakistan
government, 2003, pp. 16).Pakistan's energy-related CO2 emissions rose by 94.1% between 1990
and 2005 (World Bank, 2010, p. 362).
Pakistan's per capita emissions in 2005 were 0.8 tCO2 per head (p. 362). In 2005, Pakistan
contributed 0.45% of the global total in energy-related CO2 emissions. Pakistan's cumulative
emissions over the period 1850–2005 were 2.4 billion metric tons. Cumulative emissions before
1971 are based on data for East and West Pakistan.
Pakistan has specified preferences including:
 alternative and renewable energy
 energy efficiency
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 fossil fuel co-generation (co-generation is the use of waste heat from thermal electricity-
generation plants
 Land use, land use change, and forestry, e.g., biodiversity protection
 waste management, e.g., reducing GHG emissions from latrines and animal waste
However, the government is still facing problems in taking some concrete steps because of the
following reasons.
i) Lack of Public awareness is one of the reasons that is hampering all the steps. The common
man has no experience of using renewable energy causing hindrance in its use.
ii) Lack of investment is another reason which has proved fatal for all policies implemented for
this purpose. The government doesn't have resources that can start alternative energy projects
which tend to be relatively costly.
iii) Lack of institutional infrastructure is another highlighting point which hasn’t allowed proper
implementation of this policy.
Apart from these, some other factors have also proved as drawbacks which include, no subsidy
from the government, lack of incentives for investors, lack of skills on both the top and bottom
layer and lack of proper rules to prove vital for investment in projects pertaining to reductions in
emissions reductions.
Low Carbon Emitting Electricity Options
Since the Kyoto Protocol emphasizes mainly on pollution reduction so it is important to take a
look at the options available for low carbon emitting electricity options and those which are
feasible in Pakistan. The emissions from the fuel energy chain including fuel use for mining,
processing and transport of fuels as well as for power plant construction and decommissioning
has been analyzed in a number of studies.
Factors Influencing Green House Gases (GHG) Emission Rates From Different Energy
Sources
A. Fossil Fuels
 Fuel characteristics such as carbon content and caloric value
 Type of mine and location ™
 Fuel extraction process
 Pipeline losses for natural gas. ™
 Conversion efficiency.
 Fuel mix for electricity needs associated with fuel supply and plant construction and
decommissioning.
B. Hydro Power ™
 Type (run of river or reservoir) ™
 Plant location (tropics vs. northern climate) ™
 Energy use for building the dam. ™
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 Emissions from production of construction materials, which are dominant for run of river
and mountainous reservoirs
C. Wind ™
 Energy use for component manufacturing and construction of the installation. ™
 Fuel mix for the electricity needs associated with manufacturing and construction
operations, which are highly country and site specific. ™
 The annual yield or capacity factor which identifies the effective productivity of the
installation. The average wind speed is the key parameter when estimating the
productivity of the installation (a 50% increase in average wind speed roughly doubles
the annual yield).
D. Solar Photovoltaic (PV) ™
 Quantity and grade of silicon used for cell manufacture. ™
 Type of technology (amorphous vs. crystalline material) ™
 Fuel mix for electricity needs associated with manufacturing. ™
 Type of installation (roof type, façade, dedicated structure). ™
 Annual yield and assumed life time of the installation which are important parameters
when calculating emissions per kWh. Solar and wind power have relatively low
emissions per kW, but high values per kWh due to lower capacity factors.
E. Biomass ™
 Feedstock properties (moisture content and caloric value)
 Energy use for feedstock production (growth, harvesting and transport) ™
 Power plant technology.
F. Nuclear Power (light water Reactor) ™
 Energy use for fuel extraction, conversion, enrichment, construction/decommissioning.
™
 Fuel enrichment by gas diffusion, an energy intensive process can increase nuclear
chain GHG emissions by a factor of 10 compared to the centrifuge process. ™
 Fuel mix for electricity needs associated with the enrichment step; highly country
specific since it depends on the fuel mix in the local electricity generation system (e.g.
France derives 76% of its electricity from nuclear energy, with low emissions)
 Fuel reprocessing and recycle can reduce the total nuclear chain GHG emissions by 10-
15 % relative to once through fuel cycle.
Renewable Energy Sources in Pakistan
Hydro Power
The total hydroelectric potential in the country has not been fully investigated but estimated to be
40,000 MW. This includes all kinds of dams on the irrigation system of Pakistan. Pakistan has an
installed hydroelectric capacity of 5026 MW of large, 437 MW of medium and 253 MW of small
plants mostly in the northern areas of Pakistan. This is almost 15% of the identified potential. It
should be noted that the unit cost for a hydroelectric power plant is very cheap and it is
5 | P a g e
environmentally safe so we need invest in this field in order to cope with the requirement of
Kyoto protocol.
Wind
Commercially exploitable wind resources exist in many areas of Pakistan especially in Southern
Sindh and coastal belt of Baluchistan with average annual speed exceeding 7-8 m/s along the
Keti Bandar-Gharo corridor. It is interesting to note that no commercial wind farms are in
operation however some micro wind turbines pilot have been tested for community use.
Solar, Photovoltaic and Thermal
Almost all Baluchistan, Sindh and a vast area of Southern Punjab receives abundant solar
irradiation on the order of over 2 MWh/m2 and 3000 hours of sunshine per annum which is at
the highest end of global isolation averages. Unfortunately there is no major contribution in this
field also.
Biomass
It includes bagasse, rice husk, straw, cow dung and municipal solid waste. Pakistan large
agriculture and livestock sector produces enormous amount of biomass in term of crop residues
and animal waste such as bagasse, rice husk, and straw, dung much of which is currently
collected and used outside the commercial economy as unprocessed fuel for cooking and
household heating. In addition municipal and urban population produces a large solid waste
which can be used to produce useable methane gas and electricity. In contrary to the above
information only sugar mills in Pakistan use bagasse for cogeneration purposes and have recently
been allowed to sell surplus power to the grid up to a combined limit of 700 MW. No other
significant commercial biomass based technology is presently employed for energy
production/use in the country beyond experimental deployment of biogas digesters improve cook
stove and other small scale end use applications.
Review of Power Policies Of Pakistan
Government of Pakistan announced various power policies during the years 1994-2004. These
policies offered a wide range of choice for fuel/energy source and technology. But uptill 2006
there was not even a single standalone policy focusing the environmental issue. The Alternative
Energy Development Board (AEDB) was created in May 2003 to act as the central national body
on the subject of renewable energy. It announced a policy for the development of renewable
energy products in Pakistan. The main objective of the Board is to facilitate, promote and
encourage development of renewable energy in Pakistan with a mission to introduce
alternative/renewable energy at an accelerated rate to achieve 10% share of RE in the energy mix
of the country. Other than the policy announced by this board there is no such main policy about
clean energy production in Pakistan. Further it is interesting to know that none of the power
policy of Pakistan contains any guidelines for the Kyoto Protocol and there is no such agency in
the country that forces the power producers to limit their gas emissions. The policies of Pakistan
should be crystal clear about the possible limitations offered by the ratification of this protocol.
Hurdles and Expectations of Kyoto Protocol In Pakistan
6 | P a g e
Following are some of the major barriers offered by the current energy scenario of Pakistan for
the ratification of this protocol.
Awareness Barrier ™
 Low awareness and confidence level in alternative/renewable technologies
 Low awareness of benefits of renewable energy i.e. low public acceptance
Economic Barrier
 Lack of demonstrated economics of renewable energy based energy supply. ™
 Lack of significant field demonstration i.e. economic risk ™
 Economic analysts ignore hidden or indirect subsidies on pricing on resources
Financing Barrier ™
 Availability of project finance is a challenge: performance or asset-backed
 Lack of price guarantees
 Pooled investments are not encouraged ™
 Investors demand high rates of return due to perceived risk ™
 Long permitting process is a financial risk
Institutional Barrier ™
 Lack of dedicated institutions ™
 Ill-defined role of policy-making institutions
 ™ Conflict between institutions
 ™ Projects not based on most cost-effective scenario, but on political will
Policy and Regulatory Barrier
 Lack of long term and consistent policy ™
 Conflicting laws and policies ™
 Lack of utility commitment
 Lack of tax incentives – credits, write-offs, holidays, favorable import tax
 Lack of price subsidies and guarantees
 Inconsistent pricing structure ™
 Contradictory interconnection rules and procedure, wheeling, tariff ™
 Little concern for emission reductions ™
 Lack of standards and norms that would facilitate international trade and
regulations
Other Barrier
 Lack of experience and familiarity amongst decision makers ™
7 | P a g e
 Lack of confidence and attitude of electricity supply industry
 Low utility buy-back rates ™
 Remoteness from areas of high energy demand
 Lack of knowledge - administrative procedures and project authorization
Conclusions
By adopting Kyoto protocol Pakistan can make valuable achievements to change the local
climate as it has only 3-5% forested area. Following points should be considered for the optimum
implementation of Kyoto Protocol in Pakistan as far as the electricity generation is concerned. ™
 Governments/utilities must identify the need essential for developers to know the Kyoto
Protocol and low carbon emission options.
 There should be one or two first demo projects essential to reduce perceived risk and
uncertainty for developers. Both technology and economics must be demonstrated ™
 NGOs, aid agencies, suppliers must play a major role in providing technical expertise and
subsidies for reducing pollution. ™
 Develop and adopt best practices and standards ™
 Lending agencies must play a major role in issuing power purchase agreements (PPAs)
with utilities and prefer to purchase electricity only from those Independent Power
Producers (IPPs) which have made their pollution level low.
 Local governments must setup mechanisms to develop renewable energy resource
information i.e. to set up separate ministry and financing institution ™
 Developers should form a group to present them to governments/utilities ™
 Governments/utilities should provide incentives and subsidies to those which are
initializing their work according to the Kyoto Protocol. ™
 Implementing agencies could be integrated utilities, decentralized or public distribution
companies, and rural electric cooperatives.
Kyoto - successorfailure?
The Kyoto Protocol, while well intentioned, would appear to be doomed to failing its objectives
even before the 2008-2012 averaging period commences. Carbon dioxide levels in the
atmosphere are rising at a frightening rate with no sign of slowing. Global temperatures are
continuing to rise.
Without the USA ratifying the protocol or recently emerging economic powerhouses such as
China reducing emissions drastically; the targets will likely not be met.
Even the "permissible" degree of global warming generated by target levels (if reached) will
have far greater environmental impact that was originally envisioned.
Kyoto should be viewed as a stepping stone to more drastic action. And that action is required
now.
8 | P a g e
References
B. Eliasson, M. Robertson, “The global environment issue and the Power Industry”. unpublished.
A. Bernard, S. Paltsev, J. Reilly, M. Vielle andL.Viguier, “Russia’s role in Kyoto Protocol”.
unpublished.
Issues in the negotiationg process- Kyoto protocol mechanisms: Joint Implementation, The Clean
Development Mechanisms & Emissions trading. July 25, 2001
OECD Environmental Directorate & IEA, Designing the Clean Development Mechanism;
operational & institutional issues.Paper from the 2000 forum on climate change.
Spadro, J. V., Langlois, L. and Hamilton, B. “Green house Gas emissions of Electricity
Generation chains; assessing the difference” IAEA Bulletin, Vienna, Austria, 2000.
International Energy Agency (IEA) Nuclear Power in OECD, Paris, France, 2001.
Centre of Geopolitics of Energy & Raw materials, Scenarios of Nuclear power growth in the 21st
century, ISBN 2-9518078-0-5, Paris, France, 2002
Policy for Development of Renewable energy for power Generation.Published by Alternative
Energy Development Board, Ministry of Water and Power.Govt. of Pakistan. 2006
Akbar M., “Wind Power Plants the fuel savers” vol. # 52 April –June 2006.New Horizons,
Journal of IEEEP.
Qureshi, S.A. and Majeed, A, “Power Policies and Potential Available for Power generation in
Pakistan” vol. # 50-51 October –March 2006.New Horizons, Journal of IEEEP.

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Kyoto protocol with respect to Pakistan

  • 1. Environmental Law Kyoto Protocol And Its Implementations In Pakistan Submitted to: Submitted by: Date:
  • 2. 1 | P a g e KYOTO PROTOCOL AND ITS IMPLEMENTATION IN PAKISTAN; HURDLES AND EXPECTATIONS Introduction The Kyoto Protocol is an international agreement on reducing Greenhouse gases emissions which were adopted on 11 December 1997 in the city of Kyoto, Japan. Global warming has been a matter of great concern for all the human beings because of the risk it poses to life on planet earth and especially to that of the human life. To cope with this problem, UNO (United Nations Organization) forced special emphasis on Environment related research in the late 1980s and a special framework was adopted in 1992 in the Headquarters of United Nations which is called as UNFCCC. Kyoto Protocol was an extension of this UNFCCC (United Nations framework convention on climate change) which restricts annex 1 countries (Developed and Industrialized countries) from producing Greenhouse gases emissions above a certain limit. There is also a second category of state parties called as Annex 2 countries (Developing countries and economies in transition). These Greenhouse gases mainly consist of Carbon dioxide (CO2), Methane and 4 other gases. The Kyoto Protocol was fully implemented on 16, 2005 with the ratification of Russia which resulted in the approval of countries having total emissions up to 60%. However, the United States of America which produces more than 25% of Worldwide Greenhouse Gases emissions didn’t ratify this protocol along with Australia which also opted-out. Countries with Greenhouse gases emission targets can achieve their targets by reducing their own emissions and can go for two alternative strategies. Kyoto Targets and Strategy It is based on two mechanisms: 1. Joint Implementation or (JI) 2. Clean Development Mechanism or (CDM) Joint Implementation (JI) involves reduction that arises from project investment in other countries with their own Kyoto emission targets. Clean Development Mechanism (CDM) involves emission reducing arising from project investment in developing countries which do not have their own Kyoto emission targets. These mechanisms are based on the principle that no matter where the gases come from the impact on environment is same, and the reduction in emissions should come from the places where it will cost the least. Facts: 192 parties have ratified the protocol. The United States has not; it dropped out in 2001. The protocol mandated that 37 industrialized nations plus the European Community cut their greenhouse gas emissions. Developing nations were asked to voluntarily comply.
  • 3. 2 | P a g e More than 100 developing countries, including China and India, were exempted from the treaty. The treaty could not go into effect until at least 55 countries, accounting for 55% of the world's emissions in 1990, ratified it. The signatories agreed to cut their country's emissions to 5% below 1990 levels between 2008 and 2012. The treaty also established an international trading system, which allows countries to earn credits toward their emission target by investing in emission cleanups outside their own country. According to the Global Carbon Atlas, the largest contributors of greenhouse gases in 2016 were China and the United States. The MajorAccomplishment: The major accomplishment of the Kyoto Protocol is bringing awareness to the fact that we need to reduce our greenhouse gas emissions and protect our environment. Even if the goals of the Protocol are not met, it will have been a great starting point. The Protocol is helping the world work together to protect our planet. It show that many countries are serious about environmental protection and show others that need to be less selfish and focus on what’s really important: the protection of Earth. Kyoto Protocol and Pakistan Now if we talk about Pakistan, it is basically a developing country with very low Greenhouse gases emissions ratio of 0.3% to 0.4% compared to other countries and hence there is no strict binding on Pakistan to reduce its Greenhouse gases emissions but still the government is pursuing an agenda to reduce emissions for the benefit of its own people. One important sector that should be emphasized is the alternative energy sector because of the ongoing energy crisis in the country. Over the period from July 1993 to June 1994, Pakistan's energy sector was by far the highest contributor to CO2 emissions, with a share of 81% of total CO2 emissions (Pakistan government, 2003, pp. 16).Pakistan's energy-related CO2 emissions rose by 94.1% between 1990 and 2005 (World Bank, 2010, p. 362). Pakistan's per capita emissions in 2005 were 0.8 tCO2 per head (p. 362). In 2005, Pakistan contributed 0.45% of the global total in energy-related CO2 emissions. Pakistan's cumulative emissions over the period 1850–2005 were 2.4 billion metric tons. Cumulative emissions before 1971 are based on data for East and West Pakistan. Pakistan has specified preferences including:  alternative and renewable energy  energy efficiency
  • 4. 3 | P a g e  fossil fuel co-generation (co-generation is the use of waste heat from thermal electricity- generation plants  Land use, land use change, and forestry, e.g., biodiversity protection  waste management, e.g., reducing GHG emissions from latrines and animal waste However, the government is still facing problems in taking some concrete steps because of the following reasons. i) Lack of Public awareness is one of the reasons that is hampering all the steps. The common man has no experience of using renewable energy causing hindrance in its use. ii) Lack of investment is another reason which has proved fatal for all policies implemented for this purpose. The government doesn't have resources that can start alternative energy projects which tend to be relatively costly. iii) Lack of institutional infrastructure is another highlighting point which hasn’t allowed proper implementation of this policy. Apart from these, some other factors have also proved as drawbacks which include, no subsidy from the government, lack of incentives for investors, lack of skills on both the top and bottom layer and lack of proper rules to prove vital for investment in projects pertaining to reductions in emissions reductions. Low Carbon Emitting Electricity Options Since the Kyoto Protocol emphasizes mainly on pollution reduction so it is important to take a look at the options available for low carbon emitting electricity options and those which are feasible in Pakistan. The emissions from the fuel energy chain including fuel use for mining, processing and transport of fuels as well as for power plant construction and decommissioning has been analyzed in a number of studies. Factors Influencing Green House Gases (GHG) Emission Rates From Different Energy Sources A. Fossil Fuels  Fuel characteristics such as carbon content and caloric value  Type of mine and location ™  Fuel extraction process  Pipeline losses for natural gas. ™  Conversion efficiency.  Fuel mix for electricity needs associated with fuel supply and plant construction and decommissioning. B. Hydro Power ™  Type (run of river or reservoir) ™  Plant location (tropics vs. northern climate) ™  Energy use for building the dam. ™
  • 5. 4 | P a g e  Emissions from production of construction materials, which are dominant for run of river and mountainous reservoirs C. Wind ™  Energy use for component manufacturing and construction of the installation. ™  Fuel mix for the electricity needs associated with manufacturing and construction operations, which are highly country and site specific. ™  The annual yield or capacity factor which identifies the effective productivity of the installation. The average wind speed is the key parameter when estimating the productivity of the installation (a 50% increase in average wind speed roughly doubles the annual yield). D. Solar Photovoltaic (PV) ™  Quantity and grade of silicon used for cell manufacture. ™  Type of technology (amorphous vs. crystalline material) ™  Fuel mix for electricity needs associated with manufacturing. ™  Type of installation (roof type, façade, dedicated structure). ™  Annual yield and assumed life time of the installation which are important parameters when calculating emissions per kWh. Solar and wind power have relatively low emissions per kW, but high values per kWh due to lower capacity factors. E. Biomass ™  Feedstock properties (moisture content and caloric value)  Energy use for feedstock production (growth, harvesting and transport) ™  Power plant technology. F. Nuclear Power (light water Reactor) ™  Energy use for fuel extraction, conversion, enrichment, construction/decommissioning. ™  Fuel enrichment by gas diffusion, an energy intensive process can increase nuclear chain GHG emissions by a factor of 10 compared to the centrifuge process. ™  Fuel mix for electricity needs associated with the enrichment step; highly country specific since it depends on the fuel mix in the local electricity generation system (e.g. France derives 76% of its electricity from nuclear energy, with low emissions)  Fuel reprocessing and recycle can reduce the total nuclear chain GHG emissions by 10- 15 % relative to once through fuel cycle. Renewable Energy Sources in Pakistan Hydro Power The total hydroelectric potential in the country has not been fully investigated but estimated to be 40,000 MW. This includes all kinds of dams on the irrigation system of Pakistan. Pakistan has an installed hydroelectric capacity of 5026 MW of large, 437 MW of medium and 253 MW of small plants mostly in the northern areas of Pakistan. This is almost 15% of the identified potential. It should be noted that the unit cost for a hydroelectric power plant is very cheap and it is
  • 6. 5 | P a g e environmentally safe so we need invest in this field in order to cope with the requirement of Kyoto protocol. Wind Commercially exploitable wind resources exist in many areas of Pakistan especially in Southern Sindh and coastal belt of Baluchistan with average annual speed exceeding 7-8 m/s along the Keti Bandar-Gharo corridor. It is interesting to note that no commercial wind farms are in operation however some micro wind turbines pilot have been tested for community use. Solar, Photovoltaic and Thermal Almost all Baluchistan, Sindh and a vast area of Southern Punjab receives abundant solar irradiation on the order of over 2 MWh/m2 and 3000 hours of sunshine per annum which is at the highest end of global isolation averages. Unfortunately there is no major contribution in this field also. Biomass It includes bagasse, rice husk, straw, cow dung and municipal solid waste. Pakistan large agriculture and livestock sector produces enormous amount of biomass in term of crop residues and animal waste such as bagasse, rice husk, and straw, dung much of which is currently collected and used outside the commercial economy as unprocessed fuel for cooking and household heating. In addition municipal and urban population produces a large solid waste which can be used to produce useable methane gas and electricity. In contrary to the above information only sugar mills in Pakistan use bagasse for cogeneration purposes and have recently been allowed to sell surplus power to the grid up to a combined limit of 700 MW. No other significant commercial biomass based technology is presently employed for energy production/use in the country beyond experimental deployment of biogas digesters improve cook stove and other small scale end use applications. Review of Power Policies Of Pakistan Government of Pakistan announced various power policies during the years 1994-2004. These policies offered a wide range of choice for fuel/energy source and technology. But uptill 2006 there was not even a single standalone policy focusing the environmental issue. The Alternative Energy Development Board (AEDB) was created in May 2003 to act as the central national body on the subject of renewable energy. It announced a policy for the development of renewable energy products in Pakistan. The main objective of the Board is to facilitate, promote and encourage development of renewable energy in Pakistan with a mission to introduce alternative/renewable energy at an accelerated rate to achieve 10% share of RE in the energy mix of the country. Other than the policy announced by this board there is no such main policy about clean energy production in Pakistan. Further it is interesting to know that none of the power policy of Pakistan contains any guidelines for the Kyoto Protocol and there is no such agency in the country that forces the power producers to limit their gas emissions. The policies of Pakistan should be crystal clear about the possible limitations offered by the ratification of this protocol. Hurdles and Expectations of Kyoto Protocol In Pakistan
  • 7. 6 | P a g e Following are some of the major barriers offered by the current energy scenario of Pakistan for the ratification of this protocol. Awareness Barrier ™  Low awareness and confidence level in alternative/renewable technologies  Low awareness of benefits of renewable energy i.e. low public acceptance Economic Barrier  Lack of demonstrated economics of renewable energy based energy supply. ™  Lack of significant field demonstration i.e. economic risk ™  Economic analysts ignore hidden or indirect subsidies on pricing on resources Financing Barrier ™  Availability of project finance is a challenge: performance or asset-backed  Lack of price guarantees  Pooled investments are not encouraged ™  Investors demand high rates of return due to perceived risk ™  Long permitting process is a financial risk Institutional Barrier ™  Lack of dedicated institutions ™  Ill-defined role of policy-making institutions  ™ Conflict between institutions  ™ Projects not based on most cost-effective scenario, but on political will Policy and Regulatory Barrier  Lack of long term and consistent policy ™  Conflicting laws and policies ™  Lack of utility commitment  Lack of tax incentives – credits, write-offs, holidays, favorable import tax  Lack of price subsidies and guarantees  Inconsistent pricing structure ™  Contradictory interconnection rules and procedure, wheeling, tariff ™  Little concern for emission reductions ™  Lack of standards and norms that would facilitate international trade and regulations Other Barrier  Lack of experience and familiarity amongst decision makers ™
  • 8. 7 | P a g e  Lack of confidence and attitude of electricity supply industry  Low utility buy-back rates ™  Remoteness from areas of high energy demand  Lack of knowledge - administrative procedures and project authorization Conclusions By adopting Kyoto protocol Pakistan can make valuable achievements to change the local climate as it has only 3-5% forested area. Following points should be considered for the optimum implementation of Kyoto Protocol in Pakistan as far as the electricity generation is concerned. ™  Governments/utilities must identify the need essential for developers to know the Kyoto Protocol and low carbon emission options.  There should be one or two first demo projects essential to reduce perceived risk and uncertainty for developers. Both technology and economics must be demonstrated ™  NGOs, aid agencies, suppliers must play a major role in providing technical expertise and subsidies for reducing pollution. ™  Develop and adopt best practices and standards ™  Lending agencies must play a major role in issuing power purchase agreements (PPAs) with utilities and prefer to purchase electricity only from those Independent Power Producers (IPPs) which have made their pollution level low.  Local governments must setup mechanisms to develop renewable energy resource information i.e. to set up separate ministry and financing institution ™  Developers should form a group to present them to governments/utilities ™  Governments/utilities should provide incentives and subsidies to those which are initializing their work according to the Kyoto Protocol. ™  Implementing agencies could be integrated utilities, decentralized or public distribution companies, and rural electric cooperatives. Kyoto - successorfailure? The Kyoto Protocol, while well intentioned, would appear to be doomed to failing its objectives even before the 2008-2012 averaging period commences. Carbon dioxide levels in the atmosphere are rising at a frightening rate with no sign of slowing. Global temperatures are continuing to rise. Without the USA ratifying the protocol or recently emerging economic powerhouses such as China reducing emissions drastically; the targets will likely not be met. Even the "permissible" degree of global warming generated by target levels (if reached) will have far greater environmental impact that was originally envisioned. Kyoto should be viewed as a stepping stone to more drastic action. And that action is required now.
  • 9. 8 | P a g e References B. Eliasson, M. Robertson, “The global environment issue and the Power Industry”. unpublished. A. Bernard, S. Paltsev, J. Reilly, M. Vielle andL.Viguier, “Russia’s role in Kyoto Protocol”. unpublished. Issues in the negotiationg process- Kyoto protocol mechanisms: Joint Implementation, The Clean Development Mechanisms & Emissions trading. July 25, 2001 OECD Environmental Directorate & IEA, Designing the Clean Development Mechanism; operational & institutional issues.Paper from the 2000 forum on climate change. Spadro, J. V., Langlois, L. and Hamilton, B. “Green house Gas emissions of Electricity Generation chains; assessing the difference” IAEA Bulletin, Vienna, Austria, 2000. International Energy Agency (IEA) Nuclear Power in OECD, Paris, France, 2001. Centre of Geopolitics of Energy & Raw materials, Scenarios of Nuclear power growth in the 21st century, ISBN 2-9518078-0-5, Paris, France, 2002 Policy for Development of Renewable energy for power Generation.Published by Alternative Energy Development Board, Ministry of Water and Power.Govt. of Pakistan. 2006 Akbar M., “Wind Power Plants the fuel savers” vol. # 52 April –June 2006.New Horizons, Journal of IEEEP. Qureshi, S.A. and Majeed, A, “Power Policies and Potential Available for Power generation in Pakistan” vol. # 50-51 October –March 2006.New Horizons, Journal of IEEEP.