Earlier in May this year, the World Bank entered into an agreement with the Himachal Pradesh government for what is to be the world’s largest and India’s first clean development mechanism (CDM) project under which the bank will buy carbon credits from the new forests being developed on degraded lands under a watershed management program.
According to reports, Himachal Pradesh’s efforts in fighting climate change have been rewarded with the UN registering its multi-crore carbon trading scheme that involves providing green cover to barren 4,000 hectares in the state.
Under this scheme, over 5000 families from remote and backward villages will receive carbon revenue for the next 20 years from the World Bank for providing green cover to several areas in across 10 districts which were declared deforested before 1990.
“This is the first such project on public land to be registered for carbon trading in India,” R K Kapoor, chief project director, said.
“The project will reduce 40,000 tonnes of carbon dioxide annually for a 20-year crediting period, beginning 2006. The project is initially for 20 years which can be extended to total 60 years period,” he said.
It is expected to sequester the emission of 800 million tonnes of carbon dioxide from 2006 to 2025 by promoting bio-diversity through native species in remote areas.
Under the Emission Reductions Purchase Agreement, the bank will buy 3.5 lakh temporary certified emission reductions for plantations raised over 4,003 hectares in the first phase covering the period 2006-2018 depending on the growth of biomass, Kapoor said.
“Villagers will be paid 90 per cent of the revenue the government will get by selling the carbon credits to the World Bank,” he said.