After introducing the carbon credit facility (CCF) to encourage people to raise forests on private and community land under the World Bank-funded mid-Himalayan watershed development project the government plans to take advantage of the massive opportunity offered by the CCF by promoting clean development mechanism (CDM).

The UN framework convention on climate change (UNFCC) provides vast scope for a hill state like Himachal Pradesh with a huge potential for hydroelectric generation to earn carbon credits.

The hydroelectric projects provide ‘clean’ power compared to the highly polluting coal-based thermal plants.

Emissions from thermal plants contain carbon dioxide, sulphur dioxide and other gases that not only cause air pollution but also contribute to climate change.

There ware several other sectors like mega cement plants, industrial units and use of CFL devices for lighting that can help earn carbon credits.

The government is formulating a policy on climate change specifically with a view to earning carbon credits and protecting the fragile hill environment, says Chief Minister P.K. Dhumal.

The final document will be ready by December after which schemes will be framed in various sectors for earning carbon credits.

According to director of environment department Nagin Nanda, a draft policy has already been circulated among the departments concerned for suggestions.

The schemes for carbon credits will be finalised with the technical help of the World Bank which had the requisite expertise.

These will be submitted to the National Clean Development Mechanism Authority

for approval.

The projects will be registered with the designated national authority after which the UNFCC will carry out third party validation before issuing certifying emission reduction units (CERs). It could be sold like any other financial instrument.

The facility is available for 10 years but the CERs every year would ensure that the norms of clean development mechanism were being adhered to.

Already some private sector micro-hydel projects and the 192-MW Allain Duhangan project have registered themselves with designated authority for earning CERs.

Himachal last year became the first state in Asia and only second in the world to introduce a scheme for selling carbon credits to the World Bank directly for villagers who could earn Rs 3,000 to Rs 5,000 per hectare annually from the plantations for 30 years.

The scheme will provide the much-needed fillip to the participatory forest management programme in the country.

In all new plantations will be raised over 12,000 hectare of degraded and fallow land under the scheme in a phased manner. Only land lying fallow since 1990 can be used for plantation.

The forest department has identified 25 species, including fruit and medicinal plants like mango, fig and aonla, which not only have a good capacity of carbon sequestration but also help regulate the hydrological cycle.