Pakistan urgently needs climate action: Danish envoy

Islamabad:Danish Ambassador Jacob Linulf has stressed the urgent need for climate action in Pakistan citing climate change as a fundamental threat that requires immediate attention.

Mr Linulf was addressing a pre-budget dialogue on carbon taxation, emphasising the urgent need for a well-rounded policy approach hosted here by Sustainable Development Policy Institute (SDPI) in collaboration with Embassy of Denmark.

Mr Linulf noted that despite Denmark’s limited natural resources, it successfully shifted from fossil fuels to clean energy, proving that economic growth and sustainability can go hand in hand. He stressed that Pakistan, with its vast renewable energy potential, can adopt a similar approach by diversifying its energy sources for efficiency and resilience.

The ambassador underscored the role of energy efficiency in maintaining industrial competitiveness. He advocated for smart carbon taxation and modern technology adoption to phase out outdated fossil fuel-based systems. He further emphasised that firm and long-term government policies are essential for fostering innovation, attracting investment and positioning Pakistan as a global supplier of green technologies. He highlighted the importance of individual and corporate responsibility in the green transition. He urged businesses to embrace energy efficiency by insulating buildings and optimising production processes. Given that Pakistan exports a significant volume of textiles to Europe and North America, he stressed that adopting green value chains would enhance demand for Pakistani products in eco-conscious markets.

Justice Mansoor Ali Shah, Senior Judge, Supreme Court, underlined that carbon taxation should be a tool for resilience that enable climate adaptation and resilience in the vulnerable nations. He cited South Africa’s model which directs 10% of carbon tax revenues to climate resilience projects. He called on global financial institutions to recognise adaptation credits and restructure carbon markets to support vulnerable nations.

In his keynote, Dr Abid Qaiyum Suleri, SDPI’s Executive Director, noted Denmark’s long-standing support in helping Pakistan navigate the complexities of carbon taxation and carbon markets. He highlighted the Carbon Border Adjustment Mechanism (CBAM) — a tax on carbon-intensive exports to the European Union (EU) — which will become fully operational by January 1, 2026.