LAHORE - Wapda Chairman Shakil Durrani has said that Wapda is undertaking Clean Development Mechanism (CDM) studies of its various hydropower projects through Carbon Credit dealing consulting firms, all over the country. He was speaking after the signing of first contract with a joint venture of Carbon Services and Factor AG for four hydropower projects in this regard here at Wapda House. The contract was signed by Zia-ul-Hassan, General Manager (Hydro) Planning WAPDA and Omar M Malik, Director, Carbon Services on behalf of their respective organizations. The ceremony was also attended by Chairman Wapda, Members of the Authority and other senior managers. It may be recalled that Pakistan signed Kyoto Protocol in 2005 and was eligible for Carbon Credit to develop CDM under the said protocol. This agreement is part of WAPDA's well-established carbon trading strategy, which aims to register all such projects. This will enable WAPDA to earn income from Carbon Credits from its hydropower projects, which will used to offset the high cost of constructing these projects. The Jinnah Hydropower project is a 96 MW project and will generate approximately 688 GWh of hydel power each year, earning 330, 240 Carbon Credits annually. The Allai Khwar Hydropower Project is a 121 MW project and will generate approximately 463 GWh of hydel power each year, earning 222,240 Carbon Credits annually. The Duber Khwar Hydropower Project is a 130 MW project and will generate approximately 595 GWh of hydel power each year, earning 285,600 Carbon Credits annually. The Golen Gol Hydropower Project is a 106 MW project and will generate approximately 436 GWh of hydel power each year, earning 209,280 Carbon Credits annually. The market price of Carbon Credits at the present time will create an annual income stream of $ 3 - S 5 million per project for WAPDA, which will be used towards offsetting their high cost of their construction. This income may also increase in future if the market price of carbon credits rises. The CDM is a project-based mechanism that was established under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC). One of the main objectives of this market based approach is to assist countries not included in Annex I to the UNFCCC in achieving sustainable development through income generation of Carbon Emission Reductions (CERs), which can be encashed by trading these CERs or Carbon Credits with European buyers of CERs, who utilize these CERs to retire Green House Gas reduction obligations under the Kyoto Protocol.