Green Banking: A Path to Carbon Neutrality The Carbon Crisis and The Way Forward

Thiloththama Jayasinghe
Mar 9
3 min read

Thiloththama Jayasinghe , Editor

Carbon is life's raw material, but overuse of carbon-based gases such as carbon dioxide (CO2) and carbon monoxide (CO) poses a serious threat to the environment and mankind. The increased presence of CO2 in the environment is one of the major factors responsible for the greenhouse effect and global warming. As a result, climate change is one of the biggest issues facing humanity today. The world temperatures have risen by 1.6 degrees Celsius in 2024, surpassing the Paris Agreement's 1.5-degree goal. This is a disturbing trend that calls for instant countermeasures of reducing carbon emission and adopting green solutions.

Sri Lanka's Role in Carbon Reduction

Although Sri Lanka is not a major carbon emitter in relation to developed nations, every individual in the country emits approximately one ton of carbon annually. At the same time, Sri Lanka's agricultural sector, particularly tea plantations, is a major carbon sequestrator. Studies indicate that an acre of tea plantation can sequester the carbon emitted by five people. This balance provides the opportunity to construct a new mechanism that connects emitters of carbon with carbon absorbers.

Recognizing this potential, Sri Lanka has initiated the Ceylon De-Carbon Green Blanket Carbon Exchange Bank, a project implemented in collaboration with the Global Innovators Foundation (Canada-Sri Lanka)and the Global Green Banking Network. This project has been conceived to aid sustainability through carbon sequestration in agriculture, incentives for carbon-neutral behavior, and a systematic carbon exchange process.

The Functional Structure of the Green Banking Network

The program operates through a few significant components:

1. Global Green Brand Ambassadors – First members in Sri Lanka supporting sustainability.

2. Green Citizens – Individuals making their carbon footprint zero.

3. Green Regulators– People groups and data collectors within public.

4. Green Planters – Students at schools assisting in carbon neutrality.

5. Global Green Banking Network – The body responsible for carbon accounting and exchange.

Active citizens who are part of carbon reduction are issued with a **Green Citizen Identity Card**, which is published by the international foundation. The awarding comes with a lot of perks, including exemption from paying premiums in big hypermarkets, means of public transportation, and communication networks. Carbon accounts are created for various forms of farming work, including tea, rubber, cinnamon, coconut, and forests, so owners of land possess the right to enjoy carbon credits.

Carbon Banking and Global Recognition

One of the most important aspects of this project is the **Carbon Blanket Reserve**, which pools tiny quantities of carbon sequestration into a common account. A rating system depending on the quantity of carbon sequestered – Gold, Platinum, and Silver – is allocated for hydroelectric dams, solar farms, and developed land. Carbon trading on overseas exchanges is facilitated by this scheme, allowing Sri Lankan players to earn money from their activity.

Also, **the Global Green Card** provides priority access to banking facilities through special green windows at selected banks. Also, a carbon exchange program is being developed with Canada, Korea, and Japan to provide international recognition to carbon-neutral projects.

Social and Economic Impact

Apart from the environmental benefits, the program will also have positive impacts on local communities. A portion of the revenue generated through carbon exchange will be utilized for:

- Granting scholarships to the children of the Green Citizen family.

- Investments in eco-friendly farming technologies and modern value addition techniques.

- Expansion of conventional crop markets by way of scientific advancement.

- Development of enhanced public welfare measures.

Principal Stakeholders and Collaborators

Some institutions have shown their eagerness to join hands with this effort, as follows:

- The Institution of Incorporated Engineers, Sri Lanka.

- Haritha Udaya National Environmental Trust.

- Small Hydroelectric Power Plants such as Kosgulana and Hulkiridola.

- 10,000 acres of mango plantations ready for occupancy.

- 2.5 million acres of tea plantations.

- 35,000 agarwood trees.

- Durian, guava, sour soup, and banana plantations.

They are also being assisted by the local sponsors including commercial banks, supermarkets, food processing companies, transport companies, and export companies. State organizations like **Ministry of Environment, Department of Forest Conservation, Ministry of Agriculture, and Ministry of Education** are stakeholders as well.

A Vision for a Sustainable Future

The Ceylon De-Carbon Green Blanket Carbon Exchange Bank is one of the initial attempts at making sustainability a way of life. With carbon emitters and absorbers matched through agricultural resources achieving carbon neutrality, Sri Lanka has a bright, environmentally friendly future in store economically. As the world grapples with climatic change solutions, such pioneering measures offer the road map towards the integration of development and nature.

By this initiative, Sri Lanka is not only lowering its carbon footprint but also taking the lead as an international player in green practice. The path to the future of green banking and carbon trade is through collective effort, and Sri Lanka is leading the way to a greener, cleaner future.