Islamabad (November 19, 2024) : Pakistan has introduced its first-ever National Carbon Market Policy, marking a significant step toward achieving climate resilience, attracting sustainable investments, and transitioning to a low-carbon economy.
Romina Khurshid Alam, the Coordinator to the Prime Minister on Climate Change, announced this pivotal policy at a high-profile event titled “Launch of Pakistan’s Carbon Market Policy & Panel on Coordinated Access to Net Zero Development Financing”. The event took place at the Pakistan Pavilion during the COP29 global climate conference in Baku.
“Pakistan is now ready to lead, innovate, and collaborate with both the local private sector and international stakeholders in developing carbon markets. This initiative will drive investments in green projects, helping us meet our commitments under the Paris Agreement,” Alam stated.
She emphasized that by engaging in carbon markets, Pakistan could encourage industries to adopt cleaner practices and technologies, propelling the country toward its climate goals.
How Carbon Markets Work
Carbon markets enable trading of carbon credits, which represent the reduction or removal of greenhouse gas (GHG) emissions. They operate through mechanisms like cap-and-trade systems or credit-based trading, offering entities the opportunity to offset their emissions by purchasing credits.
Alam underlined the importance of this mechanism, noting, “This is just the beginning. The government is fully committed to making this market a cornerstone of our climate strategy, accelerating sustainable development across Pakistan.”
Policy Aims and Collaboration
The National Carbon Market Policy aims to foster clean technology adoption and channel investments into sectors with high emission reduction potential, such as energy, agriculture, waste management, and forestry.
Alam invited regional and international partners to join Pakistan in building transformative carbon markets. “We’re ready to collaborate with stakeholders who can help make this policy a success story, driving both national and global sustainability goals,” she said.
She also highlighted the role of partnerships in ensuring the success of Pakistan’s carbon market, welcoming investments and expertise from international organizations and governments.
Structured and Transparent Framework
Aisha Humera Moriani, Secretary of the Climate Change and Environmental Coordination Ministry, explained that the policy is the culmination of two years of rigorous effort. It provides a comprehensive framework for governing both voluntary carbon markets (VCM) and compliance carbon markets (CM) in alignment with international best practices.
“This framework will ensure carbon markets deliver measurable and verifiable reductions while generating economic and social benefits,” Moriani said. She added that the policy would accelerate clean technology deployment and bolster investment in climate-resilient projects.
Global Cooperation for Climate Goals
Speaking at the event, Moriani also addressed the broader significance of the policy within the context of the global climate crisis. She stressed the urgency of unified action as delegates gathered for the COP29 summit, saying, “This is a pivotal moment in our collective response to the climate emergency. Bold, decisive measures like these are essential to secure a sustainable future.”
With this policy, Pakistan signals its readiness to participate actively in global carbon markets, paving the way for a resilient, low-carbon economy and a greener future.