Punjab cattle markets could generate climate finance through waste-to-energy

LAHORE: A feasibility study by the Punjab Cattle Market Management and Development Company (PCMMDC) has found that cattle markets in the province could become an important source of climate finance by converting manure into biogas, organic fertiliser and carbon credits under a structured waste-to-energy programme.

The PCMMDC, a subsidiary of the Punjab government’s local government and community department, presented the study to its board of directors. The company manages eight modern cattle markets among several others, including facilities in Multan, Chichawatni, Arifwala, Sheikhupura, Shahpur Kanjran in Lahore, and Jhang.

According to the study, these markets collectively handle around 80,200 animals every week and produce about 87,130 kilogrammes of manure each day. Much of this waste is currently left in the open, where it decomposes and releases methane, a greenhouse gas far more potent than carbon dioxide.

A senior company official said the study found that if the waste was captured and processed scientifically, it could become both an environmental asset and a new public-sector revenue stream.

Recommended technology and viable sites

The study recommended the installation of horizontal plug-flow anaerobic digesters, which would process cattle manure in sealed conditions to produce compressed biogas, organic fertiliser and certified carbon credits.

It was carried out in three stages: carbon pre-feasibility, technical site validation, and project design and financial structuring. The process included field visits, verification of manure collection, technology screening, carbon baseline analysis and financial modelling for each site.

The findings showed that four of the eight modern cattle markets were technically and commercially viable for near-term implementation: Multan, Chichawatni, Sheikhupura and Arifwala. Of these, Multan and Chichawatni were identified as the top-priority sites for the first phase because of feedstock reliability, collection efficiency, land availability, supporting infrastructure and lower execution risk.

At Multan, the study estimated annual generation of about 72,561 carbon credits, along with 8,357 cubic metres of biogas per month and more than 30,000 kilogrammes of organic fertiliser per month. Chichawatni was assessed to have even greater potential, with an estimated 124,582 carbon credits per year and monthly biogas production of 15,200 cubic metres.

Over a five-year crediting period, the study said the programme could yield around two million verified carbon credits, subject to approval by the Government of Pakistan under the Article 6.2 authorisation pathway.

Registration model and expected benefits

The study proposed registering all eligible sites under a single programme of activities under the Gold Standard. This would allow cattle markets to be added in phases as separate project activities, lowering transaction costs and simplifying registration, monitoring and verification.

It also outlined a possible Article 6 authorisation pathway under Pakistan’s climate framework, which the study said could enhance the programme’s strategic value.

Beyond emissions reduction, the study said the project could improve waste management at major cattle markets, cut local pollution and odour, provide cleaner fuel as an alternative to LPG, and produce organic fertiliser for agricultural use. The initiative could place Punjab among the first jurisdictions to turn municipal and livestock waste into climate-linked financial assets.

"The PCMMDC would now begin carbon credit issuance and registration process, which would involve subsequent phases of carbon credit project development, including local stakeholder consultations, preparation of project design documents, construction of biogas plants at the two viable sites and using the bio-gas for commercial and industrial off-take," said the official.

The official said the company had been pursuing an initiative to convert cattle waste into clean energy and carbon credits while improving environmental conditions across Punjab. He said unmanaged cattle manure currently releases methane into the atmosphere, but under the proposed project the waste would be processed through biogas plants so the methane could be captured and used instead of being emitted.

According to the official, the captured gas would be used to generate electricity for cattle market operations, reducing dependence on the national grid. It would also be upgraded into Bio-CNG for sale to industry and the transport sector as a substitute for imported fuels such as LPG and natural gas. Part of the gas could also be supplied as clean cooking fuel to nearby vendors, while the remaining by-product would be turned into organic fertiliser for agricultural use.

He said the project would also allow the creation of carbon credits representing verified reductions in greenhouse gas emissions. These credits could be registered under international standards and sold to global buyers, generating foreign exchange earnings without increasing user charges in cattle markets.

The official said carbon credits in international markets are generally priced between $5 and $15 per credit, with methane-based projects often earning around $10 or more. "Based on this, if cattle markets in Punjab generate approximately 200,000 carbon credits annually, the potential revenue could range between $1 million and $3 million per year (roughly PKR 280 million to 840 million). However, carbon income is considered a supplementary revenue stream, contributing around 10–25% of total project earnings, while the primary financial returns will come from the sale of energy and fertiliser products, the official explained.