At COP29 in Baku, Azerbaijan, Pakistan introduced its inaugural Carbon Market Policy, marking a milestone in its environmental and economic reform agenda. Initiated through the platform of the Special Investment Facilitation Council (SIFC), the policy is a significant step toward aligning Pakistan with international climate goals and leveraging carbon credit mechanisms under Article 6 of the Paris Agreement.
The new policy aims to establish a transparent regulatory framework for governing both voluntary and compliance carbon market activities in Pakistan, following international requirements and good practice.
The policy underscores Pakistan’s commitment to sustainable development and tackling climate change. By providing a structured mechanism for carbon trading, it seeks to attract private and public sector investment into renewable energy, afforestation, and other eco-friendly projects. Moreover, it establishes Pakistan as a proactive participant in the global carbon market, potentially boosting its economy while mitigating climate risks.