PKSF to work on carbon trading
Carbon credits are now priced at $20 per tonne, voluntary carbon credit market was valued at $2.4b in 2023
The Palli Karma-Sahayak Foundation (PKSF) wants to work on carbon credit measurement by creating a platform involving the experts, said its Managing Director Nomita Halder.
At a consultation meeting on "Carbon Accounting: A Collaborative Approach for Project Development and Climate Action in Bangladesh" today (21 March), Nomita said the move would help advance the country's economy.
Carbon credits are a crucial tool in the fight against climate change, providing a means to reduce emissions while also promoting economic growth and sustainable development.
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"A carbon credit can be obtained for every tonne of pollutant gas reduction. There is a market for buying and selling these credits," Fazle Rabbi Sadique Ahmed, deputy managing director of PKSF, said.
"Those who cannot reduce pollution will buy these credits. Those who are able to reduce pollution will earn by selling their earned credits. Somewhere this market is government controlled, somewhere else it is private," explained Rabbi, also the head of the Environment and Climate Change Unit of PKSF.
Carbon credits are measured in carbon dioxide equivalent metric tonnes. And it is traded in a market-based mechanism, he said.
Carbon credits are now priced at $20 per tonne. The voluntary carbon credit market was valued at $2.4 billion in 2023 and is set to grow at a rate of over 27% through 2032.
He stressed capacity building for local experts and fostering collaboration between academia and industry to capitalise on this opportunity.
Rabbi highlighted PKSF's intention to integrate carbon accounting into climate change projects, further strengthening the voice of vulnerable communities.
Credits are generated through projects that either reduce or avoid greenhouse gas emissions.
These projects can take many forms – renewable energy initiatives such as wind, solar, hydro and geothermal power; energy efficiency projects that improve the efficiency of buildings, and factories or transportation systems.
Similarly, projects to create new forests or restore degraded land; capture methane emissions from landfills, waste disposal sites or livestock operations; or industrial projects aimed at reducing greenhouse gas emissions by improving manufacturing methods of capturing waste heat can be helpful.
These projects are typically carried out in developing countries and are certified by accredited third-party organisations such as the UN Framework Convention on Climate Change (UNFCCC).
Once a project is certified, it generates carbon credits that can be sold or traded on carbon markets, providing an economic incentive for countries, businesses, and individuals to reduce their carbon footprints.
