Faiza Tehseen

Green investment is essential for Pakistan to address its pressing environmental issues and support economic growth. Enforcement of national policies plays a central role in creating an environment conducive to implementing such initiatives effectively, Muhammad Saleem, media spokesperson for the climate change and environmental coordination ministry, said this while talking exclusively to WealthPK.

He said, “Pakistan is actively exploring the development of carbon markets as a cornerstone of its climate strategy. Transitioning towards a low-carbon economy is essential to achieve environmental sustainability and climate resilience. Strategic planning in this regard will help the country meet its climate goals and align with the global efforts to combat climate change.” The ministry official emphasized the importance of a robust collaboration among the private sector, international partners, and government agencies dealing with the environmental matters. Such partnerships can unlock the potential for green investment, helping Pakistan meet its commitments under the Paris Agreement.

Participation in carbon markets incentivizes businesses and industries to adopt environmental-friendly technologies, promoting a shift towards sustainable practices. Saleem said, “To trade carbon credits (representing reduction or removal of greenhouse gas emissions), carbon markets act as a platform. These markets operate on the ‘cap and trade’ systems or credit-based mechanisms, allowing different entities to buy, sell, or offset their greenhouse gas (GHG) emissions. The Government of Pakistan is fully committed to supporting the development of these markets, positioning them as catalysts for sustainable development and key pillars of its climate strategy.”

He said, “Establishment of a robust carbon market mechanism aligns seamlessly with Pakistan’s commitment under the Paris Agreement. It offers a pathway to monetize reduction in GHG emissions, channelling investments into various mitigation and adaptation initiatives. These efforts will not only enhance climate action but also support sustainable development across critical sectors.” He said Pakistan aimed to accelerate the deployment of clean technologies and attract significant investments in sectors with high emission reduction potential. This includes agriculture, forestry, and waste management.

By promoting green technologies, the country can position itself as a hub for environmentally sustainable industries, fostering long-term economic and environmental benefits. “To ensure an effective national carbon policy, collaboration with both national and international stakeholders is essential. This will facilitate the establishment of fully functional carbon markets, paving the way for a sustainable and resilient future.” He said a well-regulated yet transparent compliance market (CM) and voluntary carbon market (VCM) could attract private sector investment in greenfield projects focusing on climate resilience and adaptability.

These markets are vital mechanisms for meeting Pakistan’s climate and development objectives, reinforcing its commitment to a sustainable future. Enforcement of a comprehensive national carbon policy, supported by innovative carbon markets, will position Pakistan to address environmental challenges while fostering green investment. This will not only support economic growth but also enable the country to achieve its climate goals and contribute to the global efforts towards mitigating climate change.

Talking to WealthPK, Muhammad Akbar, an environmentalist from Gilgit-Baltistan (GB), said, “Proper following of the national policy guidelines in Pakistan is important to accelerate clean technology deployment and attract investment in this sector. It will also engage the country in global carbon markets, inviting both domestic and international partners”. He said proper involvement in the carbon markets will not only open up new opportunities but also bring about socio-economic prosperity. However, it is only possible if the national policies are implemented under strict measures.

Credit: INP-WealthPk