As Pakistan advances its ambitious agenda to enter the global carbon trading system, stakeholders are stressing the critical need to embed robust transparency and accountability measures from the outset to prevent the governance failures that have plagued international carbon markets.
Speaking at a workshop organised by Transparency International Pakistan, the Prime Minister’s Coordinator on Climate Change, Romina Khurshid Alam, confirmed the government is pushing ahead with plans to establish a structured framework for carbon trading, a move intended to tap into emerging global climate-finance opportunities, according to an official statement issued today.
The government is steadily working to operationalise the National Policy Guidelines for Trading in Carbon Markets, which were approved by the Federal Cabinet earlier in 2024. Ms. Alam noted that this decision represents a turning point in the nation”s climate finance strategy, opening avenues for participation in both voluntary and compliance carbon markets.
The workshop coincided with the launch of a pivotal study by Transparency International Pakistan, “Carbon Markets Readiness in Pakistan: Addressing Governance Gaps and Safeguarding Against Integrity Risks,” which highlights potential challenges and integrity risks.
Detailing the government”s progress, the coordinator outlined the development of regulatory mechanisms to manage the generation, approval, and transfer of carbon credits. A national monitoring, reporting, and verification (MRV) architecture is also being created to ensure the credibility of emissions-reduction claims.
To further bolster transparency and prevent the double counting of credits, a national carbon registry is under development. Ms. Alam added that the administration is also working to improve coordination between federal and provincial bodies while engaging development partners to build technical capacity.
Pilot initiatives in sectors such as renewable energy, forestry, and community-based climate projects are planned to test new methodologies and showcase market-ready models. The overarching objective, she affirmed, is to establish a fair, well-regulated, and internationally trusted carbon market fully aligned with Article 6 of the Paris Agreement, thereby attracting global investment.
Ms. Alam welcomed the recommendations from the Transparency International report, which advocate for clearer institutional mandates, stronger data systems, public disclosure requirements, and safeguards to protect community rights in future carbon projects.
Workshop participants, including policymakers, civil-society groups, and private-sector actors, underscored that credible systems would not only protect Pakistan’s interests but also reinforce its reputation as a responsible recipient of climate finance.
The gathering concluded with a shared view that coordinated action and sound governance are indispensable for Pakistan to successfully advance its carbon-market agenda and position itself effectively in the growing global climate-finance landscape.