Article 6 carbon market pilot project in Lahore landfill

To support the development of a pipeline of feasible projects in Pakistan for Article 6 carbon markets, the Supporting Preparedness for Article 6 Cooperation (SPAR6C) programme has announced its intention to provide technical assistance to the Lakhodair Landfill in Punjab province of Pakistan.

The announcement was made as part of a visit from representatives of SPAR6C’s donor agency, the German Federal Ministry for Economic Affairs and Climate Action (BMWK) on 21st February 2025.

The announcement was made at the Chief Minister’s Office, Government of Punjab, where German and Pakistani government officials and development representatives discussed operationalization of carbon market projects on a provincial and national level.

Benefits public and private sector, and local communities

The SPAR6C delegation met with Romina Alam Khurshid, Environmental Coordinator to Prime Minister; Saba Asghar Ali, Chief Environment Planning and Development Board Punjab;  Maryam Aurangzeb, Senior Minister Punjab; Imran Shaikh, DG Environment Protection Department; Raja Jehengir Anwer Secretary Environment Protection Department; Asif Tufail, Secretary Planning and Development Board; Babar Sahibdin,  CEO LWMC.

“This initiative sets a precedent for benefit sharing in carbon projects, between the private and public sector but also the local community as the emissions reduced can not only be monetized as carbon credits but the project will also generate jobs, enhance community resilience and improve public health outcomes,” commented Ms. Aurangzeb.

SPAR6C is led by the Global Green Growth Institute and implemented in Pakistan by the UNEP Copenhagen Climate Centre with the support of GFA Consulting Group and a number of local experts. Through this assistance, SPAR6C has already worked with government and private sector to build a pipeline of 10 Mitigation Activity Idea Notes (MAINS) and will continue to grow the pipeline in 2025. The project in Lahore has been prioritized as the first of three projects which will receive preparation support from SPAR6C, with the goal of making it viable for international cooperation under Article 6 of the Paris Agreement.

Achieving climate goals through Article 6 carbon markets

“In addition to the Lakhodair project, UNEP Copenhagen Climate Centre and SPAR6C will support two additional projects in priority sectors where carbon finance can help bridge the investment gap. The goal is to assist Pakistan in using Article 6 carbon markets to achieve the country’s climate goals by engaging the private sector.” said Dr. Urwah Khan, Climate and Energy Advisor at UNEP Copenhagen Climate Centre.

Lahore’s Lakhoder Landfill was chosen as it receives and disposes over 5,500 tons of waste daily, for a total of 12 million tons since its opening in 2016.  An estimated 55% to 60% of the waste is biodegradable, which releases harmful greenhouse gases, primarily methane as it decomposes. Methane is a potent greenhouse gas, having more than 80 times the warming power of carbon dioxide over the first 20 years after it reaches the atmosphere.

“We aim to empower more provincial initiatives like the Lakhodair Landfill project to help translate local achievements into significant national progress, as 5% of the emissions reduced will be reflected in Pakistan’s Nationally Determined Contributions,” said Ms. Alam.

Collecting methane for Lahore

Babar Sahibdin, CEO, LWMC , shared that waste segregation and reuse in the second phase of Suthra (clean) Punjab project presents an opportunity for more than Rs 200 bn in the market, and th Lakhodair Landfill can be a great opportunity for collaboration under Article 6 while benefiting our local economy and community.

The emissions reductions are planned to come from the application of a methane collection system that can supply the gas to the city of Lahore through existing natural gas infrastructure, displacing the usage of natural gas and reducing CO2-emissions from CNG use.

“GGGI is looking forward to seeing this project developed into one of Pakistan’s first Article 6 transactions. We will continue to support through SPAR6C and through the recently launched Carbon Transaction Facility,” shared Marshall Brown, SPAR6C Global Programme Manager.