ISLAMABAD: Pakistan has moved to the implementation phase of its national carbon market under a German-funded initiative, the climate ministry said on Monday, as the country seeks to strengthen its climate governance and attract international investment for low-carbon development.
The partnership, under the Supporting Preparedness for Article 6 Cooperation (SPAR6C) program funded by the German Federal Government, aims to help Pakistan transition from policy readiness to practical implementation of market-based climate mechanisms in line with global standards.
Carbon markets allow countries and companies to buy and sell credits that represent reductions in greenhouse gas emissions, creating a financial incentive to cut carbon output. Under Article 6 of the Paris Agreement, nations can trade these credits internationally to help meet their climate targets while funding low-carbon projects in developing countries.
Pakistan faces intensifying climate challenges, from record-breaking heatwaves and glacial melt to catastrophic flooding that has killed over a 1,000 people this monsoon season and displaced millions. Ranked among the world’s most climate-vulnerable nations, Pakistan has been under growing pressure to build resilient, transparent frameworks that can unlock global climate finance and support its transition to a sustainable economy.
