Pakistan is pushing ahead with plans to establish a structured and transparent carbon market framework, Coordinator to the Prime Minister on Climate Change Romina Khurshid Alam said on Tuesday, underscoring the country’s intention to tap emerging global climate-finance opportunities.
Speaking at a workshop organised by Transparency International Pakistan in Islamabad, Ms. Romina Khurshid Alam said the government was steadily moving to operationalise the National Policy Guidelines for Trading in Carbon Markets, approved by the Federal Cabinet in 2024.
She noted that the decision marked a turning point in Pakistan’s approach to climate finance, opening the door for participation in both voluntary and compliance carbon markets.
The workshop coincided with the launch of Transparency International Pakistan’s flagship study, Carbon Markets Readiness in Pakistan: Addressing Governance Gaps and Safeguarding Against Integrity Risks.
Against this backdrop, Ms. Alam outlined the government’s ongoing work to translate policy commitments into operational systems. She said the Climate Change Ministry was developing regulatory mechanisms for the generation, approval and transfer of carbon credits, along with a national monitoring, reporting and verification architecture designed to ensure the credibility of emissions-reduction claims. A national carbon registry is also under development to prevent double counting and strengthen transparency across transactions.
Ms. Romina Alam said the government was working to improve coordination among federal and provincial institutions, while also engaging development partners to build technical capacity in areas such as renewable energy, forestry and community-based climate projects. Pilot initiatives in these sectors, she added, would help Pakistan test new methodologies and demonstrate market-ready models.
Ms. Romina said the overarching goal is to establish a carbon market that is fair, well-regulated and internationally trusted, enabling Pakistan to attract global investment while aligning fully with Article 6 of the Paris Agreement.
She welcomed the Transparency International report’s recommendations, which call for clearer institutional mandates, stronger data systems, public disclosure requirements and safeguards to protect community rights in future carbon projects.
Participants, at the workshop including policymakers, technical specialists, civil-society groups, private-sector actors and development partners, underscored that Pakistan must embed accountability and transparency from the outset to avoid governance failures seen in some international carbon markets. Speakers stressed that credible systems would not only protect Pakistan’s interests but also reinforce its reputation as a responsible recipient of climate finance.
The gathering ended with a shared view that coordinated action and sound governance would be essential for Pakistan to advance its carbon-market agenda and position itself effectively in a growing global climate-finance landscape.
