Carbon Trading to begin in January
Sri Lanka would be an active participant in the global Emission/Carbon trading market following the establishment of the Sri Lanka Carbon Fund from January. Central Environmental Authority (CEA) Chairman Udaya Gammanpila said the Sri Lanka Carbon Fund would comprise small, medium and large scale private sector companies and institutions engaged in hydropower projects, re-forestation and other environment friendly projects.
“In our country there are a large number of small scale companies and it’s very difficult to get the attention of the global players. As there is tedious documentation and registering with international organizations like the UNFCC (United Nations Framework for Climate Change) Secretariat in Bonn and the Environment Ministry, which would be a complex process and may discourage these companies, the Sri Lanka Carbon Fund would bundle up these companies and place them in the Carbon Market representing Sri Lanka,” he said.
According to Mr. Gammanpila, the Carbon Fund would play a dual role, by providing assistance to the companies who are struggling to comply with the rules and by placing them in the global market to get a better price.“Most of the big countries are ready to deal with one large company or institution and as there are large companies in India, China and Brazil we might have disadvantages if these companies get into the global carbon trading market on their own,” he said.
Carbon/Emissions enable countries to meet their emissions reduction target. Countries/companies with high internal emission reduction costs would be expected to buy certificates from countries/companies with low internal emission reduction costs.
The Cabinet approved the establishment of a Carbon Fund. It would be a Fund where the Government and the private sector would be actively involved.
Mr. Gammanpila said the process of educating the public regarding the establishment of the Carbon Fund is being started.
Meanwhile the Environment Conservation Levy Act, which includes three new ‘green’ levies, would come into effect from early next year, he said.“As soon as Parliament sessions begin we will submit the bill to Parliament for approval,” he said.