Coordinator to Prime Minister on Climate Change, Romina Khurshid Alam, has said Pakistan is now actively exploring the development of carbon markets as a key strategy to meet its climate goals, attract green investments and transition toward a low-carbon economy as a part of efforts geared towards achieving environmental sustainability and climate resilience in the country.
She said Pakistan is now ready to lead, innovate, and collaborate with the local private sector as well as international partners for the development of carbon markets to attract investments in green initiatives for achieving climate goals under the Paris climate pact.
Romina Khurshid announced this while addressing a high-level event ‘Launch of Pakistan’s Carbon market Policy and Panel on Coordinated Access to Net Zero Development Financing Through Paris-Aligned Carbon Markets’ held at Pakistan Pavilion on the sidelines of COP29 global climate conference in Baku, according to a statement issued by the Press Information Department here on Saturday.
By participating in such markets, Pakistan can incentivize businesses and industries to adopt cleaner technologies and practices, she said. Carbon markets provide a platform for trading carbon credits, which represent a reduction or removal of climate-altering greenhouse gas (GHG) emissions.
These markets operate on the principles of ‘cap-and-trade” systems or credit-based mechanisms, allowing entities to buy, sell or offset their emissions.
‘This launch is just the beginning. The government of Pakistan is fully committed to supporting the development of this market, ensuring it becomes a cornerstone of our climate strategy and a catalyst for sustainable development, she told the participants of the launching ceremony.
The launching ceremony was attended by members of international civil society organizations, delegation members of different countries, academia, researchers, policymakers and media.
The PM’s climate aide also said that the intended establishment of a robust carbon market mechanism would align well with Pakistan’s commitment to the Paris Agreement, enabling the country to monetise its emissions reductions while supporting sustainable development and climate action through investment in various adaptation and mitigation-related initiatives.
Explaining about the nature of possible carbon markets in Pakistan, she said Pakistan aims to accelerate clean technology deployment and attract investment in sectors and projects with significant emissions reduction potential, including energy, agriculture, waste management, and forestry.
Inviting local, regional and international potential partners interested in development of carbon markets in the country, Romina Khurshid said, ‘We are also ready to work together with partners and collaborators interested in jointly setting up carbon markets to make this national carbon market policy not just functional but transformative’.
She said the success of Pakistan’s carbon market will depend on collaboration-within our borders and across them. She said we welcome partnerships with international investors, organizations, and governments to ensure that this market becomes a regional and global success story.