Abdul Samad Tariq ISLAMABAD, Nov 01 (APP):Pakistan is exploring carbon-market mechanisms to mobilise financing for air pollution control, with a conference presentation identifying potential for generating 984,050 carbon credits and 35.6 million tonnes of carbon dioxide equivalent over 10 years across transport, agriculture and other sectors. The proposed approach could open new financing avenues for cleaner transport, agricultural practices and industrial improvements, while linking Pakistan's air quality agenda with international …
Pakistan explores carbon markets to finance clean-air transition
Abdul Samad Tariq
ISLAMABAD, Nov 01 (APP):Pakistan is exploring carbon-market mechanisms to mobilise financing for air pollution control, with a conference presentation identifying potential for generating 984,050 carbon credits and 35.6 million tonnes of carbon dioxide equivalent over 10 years across transport, agriculture and other sectors.
The proposed approach could open new financing avenues for cleaner transport, agricultural practices and industrial improvements, while linking Pakistan’s air quality agenda with international climate finance mechanisms.
The potential was outlined during the two-day Pakistan National Clean Air Conference, where participants discussed opportunities to attract investment through carbon markets and strengthen the financial foundations of the country’s clean-air transition.
Dr Waqas Ahmed Khan of the World Bank said Pakistan needed to develop a pipeline of investable projects capable of generating carbon credits and attracting financing.
The conference presentation estimated a potential value of $5.9 million to $8.85 million, while emphasising the need for credible baselines, measurement, reporting and verification systems, safeguards and federal-provincial approvals to ensure the integrity of carbon credits.
It also highlighted the importance of engaging prospective buyers at an early stage to establish market demand and develop appropriate financing arrangements.
Explaining the international carbon-market framework, Muhammad Abid of GIZ distinguished between compliance markets, where credits are used under legally binding emissions-reduction frameworks, and voluntary markets, where organisations purchase credits on a voluntary basis.
He also discussed Article 6.2 of the Paris Agreement, which allows countries to transfer internationally recognised emissions reductions through cooperative arrangements, subject to accounting rules designed to prevent double counting.
The discussions placed carbon finance within a broader proposed framework for mobilising resources from public budgets, fiscal transfers, climate and green finance, development partners and private investment.
Andrew McCarthy of the Asian Development Bank called for a consensus statement defining responsibilities between federal and provincial governments and the establishment of a National Clean Air Financing Framework to support large-scale air quality improvements.
Beyond carbon markets, the conference examined investment opportunities in transport, agriculture, industrial emissions control and clean cooking.
Proposed transport interventions included electric-vehicle charging infrastructure, electric ride-sharing, improved vehicle inspection systems and expanded mass transit, while longer-term measures envisaged greater use of rail for freight movement and the integration of transit-oriented development into urban planning.
In agriculture, participants discussed crop-residue management, mechanisation, improved supply chains and the development of economic uses for agricultural waste, alongside opportunities for farmer financing and carbon credits.
The clean-cooking roadmap also identified opportunities for public-private partnerships, microfinance and community-led initiatives to encourage households to shift towards cleaner energy alternatives.
The conference concluded with the adoption of the Islamabad Clean Air Compact, committing federal and provincial stakeholders to coordinated action, stricter enforcement, emissions inventories and annual review meetings.
Syed Abrar Hussain, Director General of the Pakistan Environmental Protection Agency, stressed the importance of multi-sectoral strategies, advance planning before the smog season and stronger monitoring mechanisms.
Dr Zaigham Abbas, spokesperson for Pak-EPA, called for development partners, including the World Bank, Asian Development Bank, UNICEF, GIZ and ICIMOD, to support implementation of the National Clean Air Policy 2023 through practical and technology-driven interventions.
The proposed financing and carbon-market mechanisms, however, would require credible project development, transparent monitoring, institutional coordination and appropriate regulatory approvals before the identified potential could translate into actual investment and measurable improvements in air quality.
