Results-Based Financing for Climate

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Lahore Compost-Carbon Financing

Created Feb 21 2017, 12:00 AM by Julian Sosa Valles
  • Solid waste management-project examples

Project Name:

Lahore Compost



Solid Waste Management


RBF Instrument:

Carbon financing


GHG avoided estimate:

The project will lead to an estimated reduction of emissions at 4.5 million tCO2e during 2008-2026.


Budget (USD):

US$5.52 million


Project sponsors:

ESMAP, World Bank



The Lahore Compost also represents a potential adaptation for badly degraded agricultural lands across Pakistan. The composting would reduce the amount for landfill and the bio-fertilizer produced during the composting would help improve the fertility of the soil, improving its capacity for carbon retaining.


Description of the RBF Scheme:

The program is financed through a combination of equity and long-term debt. Registered as a Clean Development Mechanism (CDM), the project is expected to sell emission reduction credits at US$11/ton, the generated carbon finance payments are to be used to cover the project’s operational costs. The Monitoring and Verification (M&V) plan includes metering, monitoring, calculating, and verifying emissions reductions. Carbon credits was gained upon the verification of emission reduction. Debts are also expected to be recovered through compost sales revenue.


Publication Title:

GOOD PRACTICES IN CITY ENERGY EFFICIENCY Lahore, Pakistan – Solid Waste Composting