KARACHI: Pakistan has introduced a groundbreaking framework to operationalize carbon markets, emphasizing its commitment to global climate goals and sustainable development.
The newly finalized Carbon Market Policy was launched during the high-profile event ‘Launch of Pakistan’s Carbon Market Policy & Panel on Coordinated Access to Net Zero Development Financing Through Paris-Aligned Carbon Markets’ at COP29 in Baku. Cabinet approval is anticipated next month.
The policy provides a regulatory framework to attract green investments and accelerate Pakistan’s shift to a low-carbon economy. Coordinator to the Prime Minister on Climate Change, Romina Khurshid Alam, affirmed Pakistan’s readiness to lead in climate innovation, inviting public-private partnerships to co-develop carbon markets aligned with the Paris Agreement.
Highlighting regional initiatives, projects like Delta Blue Carbon, already purchased by Microsoft, showcase Pakistan’s potential to integrate sustainability with economic growth. Additionally, Ahya’s Tawazan Marketplace, under CEO Salaal Hasan, connects Middle Eastern and North African carbon projects to global buyers, underscoring the importance of partnerships.
Addressing Investment Challenges
Hasan identified key risks for investors, including Pakistan’s low risk ratings by international standards such as Verra and Gold Standard, a lack of localized rating mechanisms, challenges from brokers causing market fragmentation, and foreign exchange hurdles. Establishing robust local frameworks and registries is crucial to ensure transparent and sustainable investments.
Policy Highlights
Establishing a carbon market working group and a national registry.
Creating a robust monitoring, reporting, and verification (MRV) system.
Developing capacity-building programs for stakeholders and sectoral guidelines.
Ministry of Climate Change Secretary, Aisha Humera Moriani, emphasized the rigorous two-year effort behind the policy, which aligns with global standards and ensures measurable climate benefits through voluntary and compliance markets.
The initiative positions Pakistan as a leader in green investment, driving its transition to a sustainable and resilient future.
Story by Aimen Siddiqui
