The European Chamber of Commerce of Sri Lanka is organising a forum on ‘Preparing Sri Lanka to succeed in a carbon restrained world' on Tuesday, September 30, in partnership with Carbon Asia Private Ltd in Colombo.
Carbon Asia Pacific Ltd, a subsidiary of Asia Capital and a joint venture with the UK based Syndicated Carbon Capital, is making carbon trading expertise available for Sri Lankan companies locally.
To control global warming and other extreme climate changes, developed countries that made commitments under the UN’s Kyoto Protocol, are required to cut down the amount of green house gases they release into the atmosphere. However, if this is not directly possible, the UN’s Clean Development Mechanism (CDM) allows developed countries to implement emission-reduction projects in developing countries like Sri Lanka.
Carbon Asia provides specialised services for local companies to use the CDM and trade carbon credits with developed countries.“What we do is, we calculate the carbon footprint, develop projects to reduce emissions and have them approved by the UN. Project financing strategies are included,” said the CEO of Carbon Asia, Suranjan Cooray.
Cleaning energy costs
Cutting emissions of green house gases like carbon dioxide, will not only benefit the environment, but can also translate into direct cuts in energy costs for local companies at a time when oil prices are increasing.
“We look at this as a business risk and not as an environmental matter. Reducing this risk will benefit the company. For instance, reducing fossil-fuel based energy consumption, will reduce energy costs,” said Mr Cooray.
As part of its ‘carbon risk reduction’ services, Carbon Asia will calculate the ‘carbon footprint’ of a company and develop a strategy for emission reduction. The ‘carbon footprint,’ is a calculation of how much carbon dioxide is released into the atmosphere through a company’s operations. Carbon Asia says local companies will have to provide this information to their international partners before long.
“Companies in developed countries will be required to reduce their emissions. So they will require their suppliers, along the supply chain, to reduce theirs. To do this, suppliers in countries like Sri Lanka, need to know what their carbon footprint is,” explained Mr Cooray.
“By 2012 all companies in developed countries, that have made commitments under the Kyoto protocol, will face regulations on carbon emissions,” said Mr Cooray.