Pakistan is to look at ratifying the Kyoto Protocol with a view to accessing CDM finance, according to an official.

Javed Hassan Aly, the Environment Secretary, told Point Carbon: "Pakistan is conducting a study to analyse the pros and cons before ratifying any agreement keeping in view of the geo-political situation".

Pakistan and Nepal are the only two countries in the South Asia region that have yet to ratify the Kyoto Protocol - nor are they signatories. China, India, Bangladesh and Sri Lanka have all acceded to the Protocol.

Asif Faiz, programme manager for Carbon Finance (CF) at the World Bank has been involved in talks with the Pakistan Environment Ministry about its ratification of the Protocol. He believes that Pakistan could benefit from CDM projects, which supported by carbon finance, can offer opportunities for countries like Pakistan .

"If the Government delays the ratification of Kyoto Protocol," Faiz warned in conversation with Point Carbon. "It may end up losing out on a tremendous opportunity to attract additional investment resources for its development programs while becoming a major player in the emerging global carbon market."

Faiz lists possible areas for investment; renewable power generation, energy efficiency, municipal solid waste, agricultural wastes to energy, and industrial processes, especially in cement, fertilizer, steel, and petroleum refining industries.

Funding could only be given in stand alone projects which had no links to existing unprofitable or poorly performing power sectors, Faiz clarified, adding that China and India were already taking full advantage of the CDM.

"The Pakistani industry and other stakeholders are in favour of developing CDM projects but need the support of their government," says Faiz, "they should consider investing in micro hydro projects that require shorter lead periods, enabling Pakistan to meet the GHG reduction targets specified by the Kyoto Protocol for the commitment period 2008-2012".

As Aly points out "there were no bureaucratic delays holding Pakistan back from taking a decision". Nevertheless, the government might require some guidance and a small push in order to do so.