Event Summary: Parliamentary Consultative Meeting on Carbon Markets Governance in Pakistan 
Date: February 17, 2026  
Location: Islamabad 

Transparency International Pakistan convened a high level consultative meeting with honourable parliamentarians on advancing carbon market governance and legislative readiness in Pakistan. The consultation builds on TI Pakistan’s seminal report on carbon market readiness and governance gaps. As Pakistan has moved from policy formulation toward operationalizing carbon markets under Article 6 of the Paris Agreement, the dialogue focused on the role of Parliament in providing the statutory foundation necessary for credible, transparent and inclusive market development through legislation on Carbon Market Act.  

The consultation was attended by members of National Assembly and Senate Standing Committees on Climate Change and Environmental Coordination as well as parliamentarians belonging to different political parties. Opening the session, Professor Dr. Uzma Shujaat, Board of Trustee, TI Pakistan highlighted that carbon markets present an opportunity for Pakistan to mobilize climate finance and support low emission development, but only if supported by strong governance and transparent oversight. She stressed that Parliament’s role is central in ensuring that carbon market systems protect national interests, maintain credibility and deliver equitable benefits to communities. 

Mr Kashif Ali, Executive Director TI Pakistan, presented the organization’s climate governance work and legislative roadmap for parliamentarians. He highlighted that the legislative road map for parliamentarians developed by TI Pakistan focuses on four key areas including legal recognition of carbon credits as legal assets. This requires Parliament to enact a Carbon Markets Framework Act that legally defines carbon credits, Internationally Transmitted Mitigation Outcomes (ITMOs), and Verified Emission Reduction as intangible assets. The law should clearly establish ownership rules, distinguish public, private, and community-generated credits, and clarify their treatment in contracts, taxation, and dispute resolution. He also highlighted the need for the establishment of a national Monitoring Reporting and Verification (MRV) and emissions baseline system aligned with Article 6, as well as the codification of benefit sharing and community safeguards, mandating benefit-sharing provisions for projects on public or communal land, with requirement for Free, Prior and Informed Consent, and grievance redress mechanisms aligned with international standards. 

Presenting the broader climate governance landscape, Mr. Hamid Sarfraz, Managing Partner Dev Consult, explained that Pakistan’s climate governance architecture remains fragmented across federal and provincial tiers, with weak coordination, limited climate finance tracking and insufficient data integration. He underscored the need for strengthened parliamentary oversight through Council of Common Interests (CCI), integrated institutional mandates and climate finance governance systems to support effective implementation of NDC commitments. 

Sharing technical insights on carbon market readiness, Mr Hamza Rafay Butt, Climate & Nature Finance expert with UNEP-WCMC, highlighted that Pakistan has significant potential to mobilize climate finance through carbon markets across sectors such as energy, forestry, waste and agriculture. He emphasized that market credibility depends on consolidated emissions baselines, integrated data systems, domestic MRV capacity and transparent governance frameworks. He further linked these readiness gaps to the proposed legislative roadmap priorities discussed in the consultation, including the need for a legally mandated national MRV and emissions baseline system, clear institutional roles and oversight, and statutory safeguards for transparency and benefit sharing. He noted that translating readiness findings into legislative action is essential to enable Pakistan to attract substantial international carbon finance while safeguarding integrity and inclusion. 

Providing the legislative perspective, Mr Syed Bulent Sohail outlined key gaps in Pakistan’s climate and carbon market framework. He emphasized that policy guidelines alone cannot ensure legal certainty and stressed the need for notifying carbon market rules. He also presented a detailed climate assessment of different policies and laws and highlighted that there is a need for our policy frameworks to include climate considerations. He noted that such legal clarity is essential to reduce investor risk, strengthen international credibility and protect community rights. 

The parliamentary discussion highlighted strong interest among parliamentarians in carbon market governance and the need for an Act of the Parliament on carbon markets aligned with national development priorities and Article 6. The need for coordination across federal and provincial institutions and for transparent data and reporting systems was also underscored. The parliamentarians also vowed to take up the issue at the parliament level in their individual capacity through individual member bill, resolutions and other legal instruments.   

Closing the consultation, the Honorable Ms. Munaza Hassan, Chairperson of the National Assembly Standing Committee on Climate Change and Environmental Coordination emphasized Parliament’s central role in providing the statutory backbone for carbon markets and ensuring that climate finance contributes to national and community priorities. She thanked Transparency International Pakistan for engaging parliamentarians on the important topics of carbon markets and climate governance in Pakistan and expressed her strong support for legislative process as well as future engagements to sensitize parliamentarians.  

The consultation concluded with a shared recognition that Pakistan is entering a formative phase in carbon market development where legislative clarity, institutional coordination, transparent systems and inclusive governance will determine its ability to mobilize climate finance and deliver equitable climate benefits.