A Punjab study finds cattle market waste can generate biogas, fertiliser and carbon credits, offering a scalable climate finance model while cutting methane emissions and improving waste management systems.
Cattle markets in Pakistan’s Punjab could become an unlikely but significant source of climate finance, as a new study shows that manure generated across major livestock hubs can be transformed into biogas, organic fertiliser and internationally tradable carbon credits under a structured waste-to-energy programme.
The study was carried out by the Punjab Cattle Market Management and Development Company, a subsidiary of the provincial government’s local government and community department, and has been presented to the company’s board of directors.
PCMMDC manages eight modern cattle markets among many others, including facilities in Multan, Chichawatni, Arifwala, Sheikhupura, Shahpur Kanjran in Lahore and Jhang. Together, these markets handle around 80,200 animals per week and generate roughly 87,130 kilograms of manure per day.
At present, much of this waste is left to decompose in the open, releasing methane, a greenhouse gas far more potent than carbon dioxide.
“The study concludes that, if scientifically captured and processed, this waste stream can become a viable environmental asset as well as a new source of revenue for the public sector,” a senior company official told Dawn.
The report recommends installing horizontal plug-flow anaerobic digesters, which process cattle manure in sealed conditions to produce compressed biogas, organic fertiliser and certified carbon credits.
The study was conducted in three phases, starting with carbon pre-feasibility, followed by technical site validation and finally project design and financial structuring. This included field visits, manure collection verification, technology screening, carbon baseline analysis and financial modelling for each site.
Findings show that four of the eight modern cattle markets are technically and commercially viable for near-term implementation. These are Multan, Chichawatni, Sheikhupura and Arifwala. Among them, Multan and Chichawatni were identified as the highest-priority sites for Phase 1 based on feedstock reliability, collection efficiency, land availability, supporting infrastructure and lower execution risk.
At Multan, the study estimates annual generation of about 72,561 carbon credits, alongside 8,357 cubic metres of biogas per month and more than 30,000 kilograms of organic fertiliser monthly. Chichawatni shows even stronger 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, this could yield around two million verified carbon credits, potentially fetching strong returns if the Government of Pakistan approves the programme under the Article 6.2 authorisation pathway.
A key feature of the model is that all eligible sites would be registered under a single programme of activities under the Gold Standard. This would allow individual cattle markets to be added in phases as separate project activities, cutting transaction costs and simplifying registration, monitoring and verification. The study also outlines a potential Article 6 authorisation pathway under Pakistan’s climate framework, which could enhance the programme’s strategic value.
Beyond climate mitigation, the project is expected to improve waste management at major cattle markets, reduce local pollution and odour, create cleaner fuel alternatives to LPG and produce organic fertiliser for agricultural use. It could also position Punjab as an early mover in converting municipal and livestock waste streams into climate-linked financial assets.
Overall, the findings mark an important step for PCMMDC and the Punjab government as they explore ways to strengthen both financial and environmental performance of public institutions. The study also highlights a broader shift in public finance, showing that climate finance is no longer limited to forests, solar energy or large industrial projects. With proper technical structuring, even cattle market waste can generate sustainable revenue and support Pakistan’s low-carbon development pathway.
The official said PCMMDC would now begin the carbon credit issuance and registration process, including stakeholder consultations, preparation of project design documents, construction of biogas plants at the two viable sites and commercial and industrial use of the produced biogas.
He added that the initiative aims to convert cattle waste into clean energy and carbon credits, creating a new revenue stream while improving environmental conditions across Punjab.
Currently, unmanaged cattle manure releases methane into the atmosphere. Under the proposed project, this waste would be processed in biogas plants, where methane would be captured and used instead of being emitted. The gas would generate electricity for market operations, reducing reliance on the national grid, and could 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 may also be supplied as clean cooking fuel to nearby vendors, while the remaining by-product would be converted into organic fertiliser for agricultural use.
The project also enables the creation of carbon credits representing verified reductions in greenhouse gas emissions. These can be registered under international standards and sold to global buyers, generating foreign exchange earnings without raising user charges in cattle markets.
Internationally, carbon credits are typically priced between $5 and $15 per credit, with methane-based projects often fetching 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,” the official said. “However, carbon income is considered a supplementary revenue stream, contributing around 10 to 25 percent of total project earnings, while the primary returns will come from the sale of energy and fertilizer products.”
This post is repblished from ANN.
