KP launches carbon asset inventory to enter global markets

PESHAWAR: The Government of Khyber Pakhtunkhwa has officially launched the province’s first Carbon Asset Inventory for its renewable energy portfolio on Friday.

The launch event, held in Peshawar, marks a significant milestone in KP’s journey to access international carbon markets and unlock new pathways for climate finance.

Developed in collaboration with the UK International Development-funded Sustainable Energy and Economic Development (SEED) Programme, the inventory maps renewable energy projects owned by the Pakhtunkhwa Energy Development Organization (PEDO), assessing their potential for carbon credits and International Renewable Energy Certificates (I-RECs).

Speaking at the event, the Chief Minister of Khyber Pakhtunkhwa Ali Amin Khan Gandapur stated that this initiative is a bold testament to KP’s leadership in climate action. It demonstrates our resolve to expand clean energy solutions, attract green finance, and ensure that the benefits of sustainability are equitably shared among our people.”

The Chief Minister termed the launch of the Carbon Asset Inventory as a historic moment, stating that this step is evidence that our province is ready to align with global environmental goals. He said this initiative also reflects the government’s commitment to adopting market-based mechanisms for sustainable economic development. He appreciated the collaboration between PEDO and the SEED Programme, stating that it was through the collective efforts of all stakeholders that the province’s first Carbon Asset Inventory was made possible.

Ali Amin Gandapur stated that this inventory is a modern tool that maps PEDO’s renewable energy projects and establishes a carbon emissions baseline, enabling PEDO to quantify the emissions it has saved. He added that this initiative will pave the way for the province’s access to the international renewable energy market and will also lay the foundation for promoting climate financing in the province. The CM expressed his determination to fully benefit from climate financing opportunities to promote green energy solutions in the province and to make this approach a permanent part of his development strategy.

Ali Amin Gandapur said the province has special potential in renewable energy, with multiple projects under implementation by PEDO and several others in the pipeline. He termed the agreement between PEDO and PAT as a milestone, under which the renewable energy potential will be effectively utilized for the province’s economic stability. He stated that economic self-reliance and environmental sustainability are among the top priorities of his government, and for this purpose, focus is being given to the development of all sectors with untapped potential.

Earlier, briefing the participants about the outcomes of newly launched inventory, the authorities told that the Carbon Asset Inventory evaluates PEDO’s hydropower and solar portfolio against leading carbon credit standards-Verra, Gold Standard, and the Global Carbon Council (GCC) and finds that 8 projects are eligible for Verra, 13 for Gold Standard, and 37 for GCC, while the entire portfolio qualifies for I-RECs. Collectively, these projects could avoid 5.4 million tonnes of CO2 emissions annually and generate up to 11.9 million I-RECs, creating a significant opportunity for revenue through carbon markets.

In a major step forward, PEDO also signed an agreement today with the Pakistan Environment Trust (PET) to register with Evident, the global I-REC registry. This positions KP to formally enter international renewable energy markets, with five projects being registered in the first phase.