Pakistan Unveils Carbon Market Policy to Combat Climate Change
News Desk
Islamabad: In a historic move to tackle climate change, Pakistan’s Federal Cabinet has approved its first-ever Carbon Market Policy, paving the way for emissions reductions across sectors and aligning with the global climate agenda under the Paris Agreement.
The policy, spearheaded by the Ministry of Climate Change and Environmental Coordination, provides a robust framework to operationalize carbon markets. It aims to attract domestic and international investments in sectors like energy, agriculture, waste management, and forestry while ensuring environmental integrity and social equity.
According to a Climate Ministry spokesperson, the initiative is built on three pillars: environmental integrity, economic development, and equitable benefit sharing. These principles ensure that projects under the carbon market generate verifiable emission reductions and bring economic and social benefits to communities.
To encourage investor participation, the approval process has been simplified with minimal fees. A Corresponding Adjustment Fee (CAF) will allocate 12% of net revenues to provincial and national climate funds, while only 5% of generated credits will be adjusted toward Pakistan’s voluntary climate commitments.
The policy is supported by international organizations, including USAID, World Bank, UNEP, and GIZ, which are assisting in building carbon market regulations, a carbon registry, and project pipelines. These partnerships are expected to mobilize substantial capital and expertise for climate resilience.
Federal officials emphasized that the policy will channel investments into high-potential sectors, deploy clean technologies, and contribute to achieving Pakistan’s Nationally Determined Contributions (NDCs).
“This policy marks a significant milestone in Pakistan’s climate ambition. It is a call for domestic and international collaboration to create a sustainable, low-carbon future,” stated the ministry spokesperson.
As one of the most climate-vulnerable nations, Pakistan’s proactive approach through the Carbon Market Policy could serve as a model for other developing countries striving for sustainable growth and effective climate action.
