Pakistan has ratified United Nations Framework Convention on Climate Change (“UNFCCC”) on 1st June 1994 and acceded to Kyoto Protocol on 11th January 2005. Ministry of Environment has encouraged investors, by giving various incentives, to come forward and start Clean Development Mechanism projects. The CDM is a market driven approach under the Kyoto Protocol, particularly introduced for the developing countries, for initiating sustainable development projects with the help of industrialized countries in return for Carbon Credits. The CDM has an advantage of introducing environment friendly technologies and also has the potential to become a tool for technology transfer. Carbon Finance is expected to be a good business opportunity and an increasing number of governments and companies are entering the market, which is expected to grow further.

Fatima Fertilizer Complex will also adopt CDM system in collaboration with Mitsubishi Corporation, Japan. It will generate additional annual revenue through the sale of Certified Emission Reduction (“CER”) units in the international market.