Islamabad: Pakistan’s national carbon market policy, which was launched in November 2024, indicates a great commitment to reducing emissions. However, industrial experts warn that politics is short in ambition, focus of the sector, and global integration, which may hinder the country’s ability to secure climate financing and investment.
Dr. Ayaz Odeen, the regional president of the Pakistan Association and Exporters of Pakistan (PRGMEA), has highlighted that politics is an important step towards integrating carbon circulation into the broader climate strategy in Pakistan. However, he stressed the need for improvements, including encouraging investments in capturing carbon, storage and renewable energy through partnerships between the public and private sectors. The carbon control factor also suggested more flexible to enhance the participation of startups and small and medium -sized companies.
UDDIN called for awareness campaigns at the country level and capacity -building programs to involve societies and the private sector, with the call for the most powerful unmalpical rule and the strongest regional cooperation. He also urged the government to enable carbon circulation across the border. With Pakistan pledged to cut greenhouse gas emissions by 50 % by 2030 – 15 % without registration or condition and 35 % depend on international support – religion emphasized that the most aggressive work was necessary.
In comparison, India aims to decrease 45 % in the severity of emissions by 2030, while China seeks to peak emissions by 2030 and achieve carbon neutrality by 2060. Bangladesh has committed to reducing Dubai gas emissions to 5 % of the minute without registration or condition And 10 % with international support by 2030, with a strong focus on renewable energy.
Uddin pointed out that the carbon market policy in Pakistan lacks the coverage of the sector, especially in high -emission industries such as cement, steel and transportation, which is given by its regional counterparts such as India and China. Moreover, Pakistan is delayed in advanced technologies such as carbon capture and green hydrogen production.
Currently, Pakistan is developing a voluntary carbon market, operating without an official compliance framework. In contrast, the carbon market in India is more mature, with the performance, investigation and trade system that has established since 2012, and plans for the broader carbon trading mechanism. Meanwhile, the Ghana market focuses on RDD+ projects that deal with emissions from forest removal and degradation of forests.
Uddin indicated that the carbon market in Pakistan is currently focusing on agriculture and the developing power sector. This contrasts with India’s focus on heavy industries such as cement and steel, Ghana’s focus on forests along with renewable energy and transportation, and Bangladesh’s dedication to renewable energy and agriculture.
To enhance the carbon market policy, attract international investment, and play a leading role in global climate work, Pakistan must address these gaps and implement bold reforms. While the 2024 policy was a positive step, enhanced integration with international and comprehensive markets at the sector level is the key to achieving climate goals.
