Lucky Cement of Pakistan has earned carbon credits through the implementation of its waste heat recovery project, whereby it has managed to reduce carbon emissions in a substantial manner. The same has been achieved by the company as per the clean development mechanism under the Kyoto Protocol.The waste heat recovery project comprises of a power generation unit which does not require any external fuel and utilises wasted heat from the system as its fuel. The company’s waste heat recovery plant has resulted in an estimated CO2 reduction at its Pezu plant to 29,918 metric tons while the reduction at its Karachi plant is 50,000 metric tons.The clean development mechanism entails developing countries to earn certified emission reduction credits through emission reduction projects. The carbon credits can be sold and traded by developing countries for financing their industrial projects.The estimated annual CO2 reduction by virtue of WHR plant at its Pezu Plant is 29,918 metric tons and by WHR at Karachi Plant is 50,000 metric tons. Lucky Cement’s innovation is thus preserving environment, curtailing its energy needs and saving cost in a unique way.The clean development mechanism allows emission-reduction projects in developing countries to earn certified emission reduction credits.These carbon credits can be traded and sold and are used by developing nations to finance their industrial projects. One allowance or certified emission reduction is equivalent to one metric ton of CO2 emissions.