The Effects of Climate change in South Asia – prospects of carbon trade

June 16, 2012 | By More

The effects of climate change are now visible on economic growth & production patterns of many regions, especially, of agriculture based countries. The SAARC countries ushered their agriculture based economy towards an industrialized option with fairly low contribution towards the world’s carbon dioxide emissions. At the same time, SAARC countries are facing multiple threats relating to climate change especially for adaptation, aggravating the already aggravated situation in the region. Sub-standard industrial operations generate excessive carbon, toxic to health, polluting the environment and ultimately causing global warming. Industries manage their emissions through Cap and Trade provision, which is now available only in developed countries while in the developing world, it would be applicable after 4-5 years. Despite the pertinent need for responding to climate change, current policy framework to address climate change, especially adaptation in SAARC region fails to comprehensively address the issue. There is a suggested series of policy responses to climate change including adaptation policies and incentive based mitigation responses such as NAMA, Clean Development Mechanism (CDM) and REDD+ under the actions agreed through UNFCCC’s global negotiations.

In order to harness maximum carbon trade potential and address its needs for the region, SAARC Chamber of Commerce and Industry (SAARC CCI) intended to develop this paper with the aim to provide a comprehensive document with recommendations for a way forward to climate change adaptation in general and carbon trading mechanism, in particular, for the benefits of natives of SAARC countries. The production of this policy paper, primarily, involved the evaluation of primary and secondary sources of information, and analysis of secondary data from various sources.

Overall scope of paper covered the analysis of existing energy potential and its trade mechanism in SAARC countries by taking into account the technical review of challenges due to climate change, existing capacities, governance issues, institutional set up, role of stakeholders, carbon trade potential through application of clean technologies and carbon stocking in forests, and impact of current policies.

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Category: Trade & Economy

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