[Let's Run Again K Construction] Linking Residential Environment Improvement and On-site Gas Reduction... Presenting New Business Model in Pakistan

Securing 1.36 Million Tons of Carbon Emission Permits, Supporting 46 Billion Won in Private Overseas Orders

[Asia Economy Reporter Cha Wanyong] Korea Land and Housing Corporation (LH) is establishing a new overseas business model to respond to the international community's climate change agreements and secure competitive advantages, and is carrying out its first project in the Karachi area of Pakistan. This project presents a new paradigm of residential environments linking slum area housing improvement with greenhouse gas reduction.

Pakistan, with a land area of 771,000 km² (7.7 times that of Korea) and a population of 225.2 million (6th largest in the world), is rapidly urbanizing. However, due to local governments' financial shortages, infrastructure construction and public service provision have not been realized, causing a rapid increase in the population moving into slum areas. Due to insufficient housing supply, the slum population accounts for 40% of the total urban population.

Poor housing conditions in the Karachi area of Pakistan.
[Photo by Korea Land & Housing Corporation]

Most houses in slum areas are built with earth and clay, leaving them exposed to disaster risks. Water supply and sewage facilities are also inadequately equipped, resulting in poor sanitary conditions. Additionally, many villages lack streetlights, leading to frequent safety and crime incidents. In such living environments, residents burn firewood and use inefficient streetlights to sustain basic living, emitting large amounts of greenhouse gases.

Accordingly, LH has selected 31 slum areas within Karachi City (84,000 households, 530,000 residents) to implement a Clean Development Mechanism (CDM) project aimed at improving housing conditions while reducing residents' greenhouse gas emissions. The project includes installing 213 village-level water purification facilities to supply 4 million liters (L) of drinking water daily, supplying 200 million low-carbon non-fired bricks to support the improvement of old houses, and installing or replacing approximately 20,000 high-efficiency LED streetlights to prevent crime and reduce electricity consumption.

Furthermore, community parks will be created in some areas to improve the urban landscape and enhance residents' quality of life. The specific project plans were selected from methodologies registered under the United Nations Framework Convention on Climate Change (UNFCCC), considering local demand, technology, and economic feasibility. Through this project, LH expects to reduce 1.36 million tons of greenhouse gases over ten years and secure corresponding carbon emission rights. Additionally, the project is anticipated to generate about 46 billion KRW in private overseas order support effects through construction and service contracts during the project process.

LH signed a memorandum of understanding for business cooperation with Pakistan's Ministry of Climate Change in June and has completed the preparation of the project plan, currently undergoing the national approval process by the Pakistani government. Next year, the project plan will be registered with the UNFCCC, and full-scale construction is planned to begin in 2024.

An LH official stated, "The international community's demand for greenhouse gas reduction is increasing, and in the near future, securing carbon emission rights is expected to emerge as an important factor for enhancing corporate competitiveness. LH will do its best to support housing environment improvement and sustainable development in developing countries while ensuring stable supply of carbon emission rights to domestic companies."

Meanwhile, LH is continuously increasing the energy self-sufficiency rate of housing, such as constructing the Sejong 6-3 Living Zone M1 Happy Housing with a zero-energy grade 3 rating and an energy self-sufficiency rate of 66.9%. It is also promoting greenhouse gas reduction through various projects, including expanding carbon neutrality from buildings to the urban level.

This content was produced with the assistance of AI translation services.