IPPAN signs MoU with ProClime for renewable energy certificates 

KATHMANDU: Independent Power Producers' Association, Nepal (IPPAN) has signed a memorandum of understanding (MoU) to acquire International Renewable Energy Certificates (I-RECs).

This agreement is significant as the private sector's share in the country's power production is gradually increasing. IPPAN President Ganesh Karki and ProClime's CEO Kavin Kumar Kandasamy signed the MoU at a function recently held in Lalitpur.

According to IPPAN, the agreement with ProClime will make 2,000 megawatts (MW) of electricity eligible for carbon trading in the first phase, out of the 2,700 MW generated by the private sector in Nepal. This will allow Nepal's private sector to engage in carbon trading worth around Rs 1 billion annually, said IPPAN President Karki.

ProClime's CEO Kandasamy highlighted that Nepal is likely to benefit from carbon trading, following the example of its neighbours India, Bhutan, and Sri Lanka. International Hydropower Association (IHA) Vice Chair Sushil Pokharel stated that hydropower projects in Nepal have met sustainable development criteria and will soon receive budgetary support from carbon trading.

At the event titled 'Unlocking the Green Monetisation of Nepal's Hydropower', Electricity Regulatory Commission (ERC) Chairperson Ram Prasad Dhital launched the I-REC calculator, a carbon footprint calculator designed for Nepal. He argued that Nepal should capitalise on the global carbon trading market, adding that despite the country's immense hydropower potential, it has so far only generated 300,000 MW of power.

Maheshwar Dhakal, Joint Secretary of the Ministry of Forests and Environment, mentioned that Nepal is receiving small-scale benefits from carbon emission reductions via forests but has yet to reap significant rewards.

Senior energy expert Prabal Adhikari echoed the sentiment, stating that Nepal should leverage carbon trading as it sells hydropower in regional markets. Ashok K Chandel, Manager of the Global Carbon Council, and Eric Solheim of the Global Renewal Alliance, also addressed the programme, emphasising that Nepal, situated between powerful nations like China and India, should benefit from carbon trading.

One of IPPAN's main purposes, established in 2001, is to act as a bridge between the private sector and government organisations involved in developing hydropower, ensuring maximum benefits for Nepali citizens.

ProClime is a climate-first unified service provider, aiming for a net zero future through its 3Cs: Carbon Projects, Carbon Trade, and Climate Investments, supported by comprehensive advisory services. ProClime actively engages with the government, businesses, tech and academia, finance, and society to create mutually beneficial solutions for a safer environment.

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