ISLAMABAD: Pakistan’s Climate Change Minister Dr. Musadik Malik on Thursday met with a high-level Asian Development Bank (ADB) delegation to explore potential collaboration on carbon markets as part of the country’s evolving climate strategy, said in an official statement.
The visiting team was led by Toru Kubo, ADB’s Senior Director for Climate Change and Sustainable Development. The discussions focused on leveraging carbon markets to reduce greenhouse gas emissions and attract new streams of climate finance for sustainable development.
Carbon markets are trading systems that allow countries, companies or organizations to buy and sell carbon credits or permits representing the right to emit a specific amount of carbon dioxide. These markets create financial incentives for reducing emissions and investing in greener alternatives.
“Both sides agreed to formulate a comprehensive, mutually aligned climate change strategy, with a specific focus on carbon credit mobilization, climate innovation and outcomes-based project implementation,” the climate change ministry said in a statement.
The two sides also explored ways for Pakistan to strategically align its carbon finance agenda with the Sustainable Development Goals, aiming to turn climate action into a driver of economic growth, it added.
On the occasion, Malik assured the ADB of full support in the strategy formulation, emphasizing that it should remain “impact-driven, transparent and results-oriented.”
Kubo highlighted ADB’s support for developing member countries, including Pakistan, by enhancing their carbon finance capabilities through mobilizing investments in low-carbon technologies, enabling them to access and benefit from global carbon markets.
The ministry said the meeting showed that climate action is now seen as a way to boost the economy, not just an environmental measure, with more countries paying attention to carbon markets.
Pakistan unveiled the country’s first National Carbon Market Policy in November 2024, saying that the government wanted to attract investments in green initiatives and transition toward a low-carbon economy.
According to the Global Climate Risk Index, Pakistan is ranked as the fifth most vulnerable country to climate change.
In 2022, devastating floods claimed about 1,700 lives and affected more than 33 million people, causing economic losses exceeding $30 billion.
Although international donors pledged over $9 billion to support Pakistan’s flood recovery, officials report that only a small portion of the promised funds were received by the country.
