Operationalising carbon credit market key to green investments, says climate secretary

KARACHI: Secretary of the Ministry of Climate Change Aisha Humera Chaudhry has said that Pakistan must first establish a functional carbon credit market to fully leverage its potential for climate finance. Speaking at the launch of Karandaaz Pakistan’s report on carbon credits trading, Chaudhry emphasised the importance of operationalising the market to enable private sector participation and international transactions by the end of the year.

According to Chaudhry, “The Ministry of Climate Change is of the view that first of all, we have to operationalise the carbon credits market and let the private sector get the benefits of these opportunities and raise climate finance…We are also in touch with some of the countries bilaterally who are interested in G2G arrangements and we are in the process of developing our national registry. We hope that by the end of year, we will be in the position to start making transactions”.

She was speaking at a webinar for the launch of a report by Karandaaz Pakistan, titled ‘Carbon Credits Trading - Exploring Landscape and Regime in Pakistan’. The event convened key stakeholders from the public and private sectors to explore the challenges and opportunities of establishing a structured carbon trading framework in Pakistan.

Emphasising the significance of carbon markets in achieving Pakistan’s climate goals and attracting green investments, Syed Salim Raza, chairperson of the Karandaaz Board of Directors highlighted the crucial role of the private sector saying: “Fortunately, the private sector globally is already poised towards being committed to climate change… New and more efficient, cheaper technology has become not just an expectation but is actually happening. In many countries, the private sector is already working under a system requiring compliance with emission ceilings set for different sectors.”

According to CEO of Karandaaz Waqas ul Hasan, “Climate change is real, so is global commitment for sustainable development. Paris Agreement, and speaking more specifically, Article 6, are an articulation of this commitment. The world is a complex place and the carbon markets - informed by science, driven by global commitment for sustainable development, and at the same time resisted by protectionist forces and affected by the politics of north and south – are even more complex. We will have to develop ‘capacities’ to claim our fair share in this game.”

Ms Jo Moir, development director at the UK’s Foreign, Commonwealth & Development Office (FCDO), highlighted the UK’s commitment to green growth in Pakistan and the crucial role of carbon markets in unlocking climate finance. She said, “Economic growth cannot be sustained unless we look at the growing threat of climate change. We need to work towards those interventions that can help adapt and build resilience to drought, floods, and extreme heat. The time to act is now on adaptation and resilience. The carbon markets can play a key role in helping to unlock the much-needed climate finance for that.”