Pakistan

Implementation period: 2024-2027 Funding amount: US$2 million Window: Readiness

Pakistan has taken initial steps toward establishing a carbon market through key policy documents such as the National Climate Change Policy, and the creation of a National Committee on the Establishment of Carbon Markets. The country is actively exploring market-based approaches as part of its climate strategy, releasing recently Pakistan’s National Policy Guidelines for Trading in Carbon Markets. It intends to utilize voluntary cooperation under Article 6 to enhance the achievement of its revised climate commitments, or NDC 3.0 targets.  

As Pakistan continues to engage in readiness activities for international carbon markets,  the PMI Pakistan Readiness Program will help solidify institutional and technical foundations necessary for carbon market participation: Operationalizing the national carbon market committee, scaling pilot activities, and engaging stakeholders to co-develop a viable carbon pricing roadmap aligned with national development priorities.

Objectives & Activities

The PMI Program in Pakistan works to support the country in preparing for carbon pricing implementation by providing technical assistance on:  

• Development of international carbon market framework: Support the further development and implementation of institutional arrangements and policy framework to enable Pakistan's participation in international carbon markets, including voluntary carbon markets and Article 6 of the Paris Agreement
• Design and piloting of Measurement, Reporting, and Verification (MRV) systems and registry infrastructure: Evaluate options for digital registry systems, including open-source tools and support the customization and piloting of a national registry for carbon credit tracking and exchange
• Feasibility of an allowance-based emissions trading system (ETS): Conduct technical assessments on the design and potential impact of a national ETS, including the development of a pilot program and stakeholder consultations to inform future policymaking
• Capacity building and knowledge dissemination: Support the execution of a national capacity-building plan, a communication strategy, and knowledge outreach to raise awareness and foster engagement among key stakeholders

Additional Resources 

• Pakistan NDC 3.0
• Pakistan Policy Guidelines for Trading in Carbon Markets