Mr. Speaker

¶ 01 An agreement was reached with Japan on 10.10.2022 for implementing the Joint Carbon Crediting Mechanism. Under this agreement, projects are implemented with the approval of the Joint Committee in terms of Article 6.2 of the Paris Agreement.

¶ 02 The Ministry of Environment functions as the national authority for implementing Article 6.4 of the Paris Agreement and has given approval for 7 projects for access to the new mechanism of the clean development projects.

¶ 03 A Memorandum of Understanding was signed on 22.08.2023 with Singapore for implementing Article 6 of the Paris Agreement.

¶ 04 The Carbon Registry is being formed with the cooperation of the United Nations Development Programme (UNDP).

¶ 05 (a) (1) Sri Lanka’s future course of action towards the implementation of the Climate Prosperity Plan (CPP) mainly focuses on building an economy of net negative carbon emission that withstands climate change.

¶ 06 Main objective and strategies

¶ 07 - Maximizing the renewable energy potential: - Increasing the generation of renewable energy from 35 per cent to 70 per cent by the year 2030. - Taking the initiative to take the country towards net negative emissions status by the latter part of the decade. - Enhancing climate resilience through nature-based solutions and financial protection. - Green Financing: - Launching the National Climate Finance Strategy 2025-2030 and providing for the financing framework necessary for implementing the climate policies. - Mobilizing resources through financial instruments such as Green Bonds, Disaster Risk Insurance and Carbon Markets. - Generation of Green Jobs: - Giving priority to generation of green jobs for the purpose of optimizing the benefits of sustainable and climatically safe transition.

¶ 08 (11)

¶ 09 The Action Plan for implementing the Nationally Determined Contributions - NDCs - of Sri Lanka (2021-2030) and Carbon Net Zero 2050 also operate in combination with this broad Climate Prosperity Vision.

¶ 10 At present;

¶ 11 1. The draft of the updated Climate Prosperity Plan has been finalized by now and the validation workshop was conducted on 10th October.

¶ 12 2. Cabinet Approval is expected to be sought after obtaining the concurrence of the line Ministries relevant for the implementation of the Plan concerned.

¶ 13 3. Projects have been identified for each of the sectors in the Climate Prosperity Plan together with the institutions from which support can be obtained for the projects. After submitting the project proposals to the relevant parties, Sri Lanka will be able to obtain financial support from the institutions concerned for implementing the projects.

¶ 14 4. The Vulnerable Group of Twenty (V20), which was started in 2015, works with international cooperation under a Climate Risk Forum - a forum of finance ministers that works to combat climate change by mobilizing and implementing economic and development strategies and programmes - leveraging public and private finance, in conjunction with the annual meetings of the World Bank Group and the International Monetary Fund, and the Ministry of Finance of Sri Lanka is to function as its focal point, which the Ministry has been performing. The Vulnerable Group of Twenty (V20) will support the close collaboration with the International Monetary Fund and the World Bank.

¶ 15 The steps that the Government has taken by now to ensure Carbon Market Access are as follows:

¶ 16 - The policy and guidelines on carbon trading is being formulated at present with technical and financial cooperation of the UNFCCC’s Regional Cooperation Centre established in Dubai. The general public is expected to be consulted after obtaining the input from all stakeholders on this policy and guidelines, which has been drafted by now. Thereafter, it is to be presented to the Cabinet of Ministers for its approval and subsequent to the approval, the policy on carbon trading will be put into effect.

¶ 17 (b) Does not arise.