ISLAMABAD: Pakistan signed its first carbon market deal under the Paris Agreement with Norway on Wednesday, with Norwegian Ambassador Per Albert Ilsaas saying the agreement will help create jobs and wider environmental benefits in the South Asian country.
Pakistan’s state-run Associated Press of Pakistan (APP) news website reported that the memorandum of understanding was signed between the two sides at the Ministry of Climate Change in Islamabad on Wednesday.
According to the Norwegian government’s official website, the agreement paves the way for Pakistan to slash emissions that can be converted into climate credits Norway can buy. The climate credits can help Norway meet its 2030 climate target, the website said, adding that emission reductions must be long-lasting and may, after a few years, be counted toward Pakistan’s climate goals.
“Norway wants programs that deliver high-quality carbon credits, while also supporting green growth, job creation and wider environmental and social co-benefits here in Pakistan,” Ilsaas told Arab News.
The agreement is Pakistan’s first carbon market bilateral deal with another country and has been signed under Article 6 of the Paris Agreement, which allows countries to collaborate on emissions reductions.
Pakistan’s Climate Change Minister Musadik Malik described the agreement as a “historic milestone,” adding that it would mark Pakistan’s shift from carbon market preparedness to implementation.
Under the deal, Pakistan can generate carbon credits through projects in renewable energy, agriculture, transport and waste management. These credits may be traded as internationally transferred mitigation outcomes (ITMOs), APP stated.
Malik said the agreement would create a pathway for international cooperation and investment in Pakistan’s climate-related sectors.
The Pakistani minister said carbon markets should contribute to broader economic and social goals.
“They must help countries like Pakistan finance transition pathways, create jobs, attract technology and deliver real benefits to communities,” he was quoted as saying by the APP.
Pakistan is counted among countries that are at most risk from climate change effects, as per the Global Climate Risk Index. Extreme weather events like floods, droughts, cyclones, torrential rainstorms, and heat waves have been occurring more frequently and with greater intensity across the country in recent years.
Torrential rains and flash floods during the monsoon season killed over 1,000 people last year. In 2022, unusually heavy monsoon rains which experts said were caused by climate change effects, killed over 1,700 people and inflicted losses that were estimated at over $30 billion.
