Pakistan moves to build transparent, regulated carbon market framework

December 09, 2025 (MLN):  Pakistan is pushing ahead with a structured and transparent carbon-market framework as the government moves to operationalise the National Policy Guidelines for Trading in Carbon Markets approved in 2024.

At a workshop organized by Transparency International Pakistan in Islamabad, Coordinator to the Prime Minister on Climate Change Romina Khurshid Alam said the initiative marks a major shift in the country’s climate-finance strategy, paving the way for participation in both voluntary and compliance carbon markets.

The event coincided with the launch of Transparency International Pakistan’s study, Carbon Markets Readiness in Pakistan: Addressing Governance Gaps and Safeguarding Against Integrity Risks, according to a press release issued.

Against this backdrop, Ms Romina Alam outlined ongoing government efforts to convert policy commitments into functioning systems.

She said the Climate Change Ministry is finalising regulatory mechanisms for generating, approving and transferring carbon credits, while also developing a national monitoring, reporting and verification (MRV) architecture to ensure the integrity of emissions-reduction claims.

Work on a national carbon registry is underway to prevent double counting and enhance transparency across transactions.

Furthermore it was added that the government is strengthening coordination between federal and provincial institutions and working with development partners to build technical capacity in renewable energy, forestry and community-based climate projects.

Pilot initiatives in these areas, she noted, will help test methodologies and demonstrate market-ready models.

The overarching aim, she said, is to build a fair, well-regulated and internationally credible carbon market aligned with Article 6 of the Paris Agreement, enabling Pakistan to attract global investment.

She also welcomed recommendations in the Transparency International report, which call for clearer institutional mandates, stronger data systems, public disclosure requirements and safeguards to protect community rights.

Participants at the workshop including policymakers, experts, civil-society representatives, private-sector actors and development partners emphasized the need to embed transparency and accountability from the outset.

They warned that credible governance is essential to avoid failures seen in other international carbon markets and to maintain Pakistan’s reputation as a responsible recipient of climate finance.

The gathering concluded with broad agreement that coordinated action and strong governance will be crucial for Pakistan to advance its carbon-market ambitions in an expanding global climate-finance landscape.

Copyright Mettis Link News