{"id":10191,"date":"2025-12-12T10:16:09","date_gmt":"2025-12-12T10:16:09","guid":{"rendered":"https:\/\/alacpakistan.com\/event2024\/?page_id=10191"},"modified":"2025-12-12T10:29:57","modified_gmt":"2025-12-12T10:29:57","slug":"carbon-markets-readiness-in-pakistan-addressing-governance-gaps-and-safeguarding-against-integrity-risks","status":"publish","type":"page","link":"https:\/\/alacpakistan.com\/event2024\/carbon-markets-readiness-in-pakistan-addressing-governance-gaps-and-safeguarding-against-integrity-risks\/","title":{"rendered":"Carbon Markets Readiness in Pakistan Addressing Governance Gaps and Safeguarding Against Integrity Risks"},"content":{"rendered":"\t\t
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Carbon Markets Readiness in Pakistan Addressing Governance Gaps and Safeguarding Against Integrity Risks<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Carbon Markets Readiness in Pakistan Addressing Governance Gaps and Safeguarding Against Integrity Risks
<\/strong>December 9, 2025
Margala Hotel, Islamabad<\/strong><\/p>

Transparency International Pakistan hosted a high level dissemination workshop on its new report, Carbon Markets Readiness in Pakistan Addressing Governance Gaps and Safeguarding Against Integrity Risks, delivered under the Climate Governance Integrity Programme (CGIP) supported by the Waverley Street Foundation (WSF). This initiative reflects TI Pakistan\u2019s commitment to strengthening transparency and accountability in climate finance as the country moves toward formalizing its carbon market architecture. The report builds on major national developments, including the Policy Guidelines for Trading in Carbon Markets launched in December 2024 and the operationalization of carbon markets in early 2025, which marked a shift from individual project level activities to a coordinated national approach aligned with Article 6 of the Paris Agreement. It examines Pakistan\u2019s readiness for carbon markets and underscores the need for integrity, accountability, inclusivity and benefit sharing to ensure responsible participation. The study highlights existing strengths while identifying governance gaps in oversight, transparency, grievance mechanisms and equitable benefit sharing with marginalized communities. It further introduces a Benefit Sharing and Inclusion Framework, a Carbon Market Development Checklist and policy recommendations designed to support Pakistan\u2019s transition to high integrity carbon markets. With flagship initiatives such as the Delta Blue Carbon Project already giving Pakistan global visibility, the report stresses that integrity and inclusion must guide future carbon market expansion.<\/p>

Opening the session, Professor Dr Uzma Shujaat highlighted that high integrity carbon markets can play a vital role in mobilizing climate finance and strengthening resilience, but only if supported by transparent, accurate and publicly accessible data. She emphasized that fragmented baselines and institutional capacity gaps threaten the credibility of emerging carbon projects and stressed that local communities must be protected through enforceable, inclusive benefit sharing mechanisms that prevent exclusion and uphold social safeguards.<\/p>

Mr Kashif Ali, Executive Director of Transparency International Pakistan, underscored the urgency of Pakistan\u2019s climate finance needs and explained that Article 6 provides a mechanism for mobilizing large scale results based finance if implemented through strong governance systems. He noted that carbon markets inherently carry integrity risks and called for clear federal and provincial mandates, binding regulatory rules, transparent data systems and grievance redress mechanisms to maintain credibility, prevent double counting and safeguard community interests.<\/p>

Presenting the report\u2019s technical findings, Mr Hamza Rafay Butt of UNEP WCMC stated that Pakistan has the potential to mobilize between USD 400 million and 2 billion annually through well governed carbon markets in sectors such as energy, waste, forestry and agriculture. He emphasized the urgent need for consolidated national baselines, integrated data architecture, domestic MRV capacity and meaningful community participation. He introduced the carbon market development checklist as a practical tool for guiding phased market development centred on integrity, inclusion and international best practices.<\/p>

Offering a governance perspective, climate expert Mr Ali Tauqeer Sheikh highlighted that Pakistan\u2019s framework remains policy driven rather than underpinned by comprehensive legislation, leaving ambiguity around carbon rights, provincial jurisdiction and institutional accountability. He stressed that a national coordination body, legally mandated safeguards and public disclosure systems are essential to build trust among international buyers, investors and communities and to ensure that credits generated in Pakistan meet global integrity standards.<\/p>

The keynote remarks were presented by Ms. Romina Khurshid Alam, Coordinator to the Prime Minister on Climate Change. She reaffirmed the government\u2019s commitment to operationalizing the national carbon market guidelines by establishing monitoring, reporting and verification architecture, developing a national carbon registry and harmonizing approval procedures. She explained that ongoing pilot initiatives in key sectors will help test methodologies, improve coordination and strengthen investor confidence while ensuring community rights remain central. She congratulated TI Pakistan for producing the report, and emphasized that Pakistan must be prepared for the opportunities and responsibilities that come with carbon markets.<\/p>

The panel discussion, moderated by Mr. Kashif Ali, ED TI Pakistan, brought forward a rich range of institutional perspectives. Mr Hiz Jamali of the Asian Development Bank emphasized that regulatory coherence and alignment with global best practices are necessary to build market credibility and confidence. Dr Irfan from the Private Power and Infrastructure Board (PPIB) stressed the need for clear procedural and baseline linkages in project approval processes. Ms. Zainab Naeem from SDPI underscored that transparency in beneficiary identification and inclusion is crucial to prevent elite capture and strengthen fair distribution of benefits. Mr. Ahsan Kamran from the SPAR6C programme explained that interoperable MRV systems and capacity building at provincial and community levels are fundamental for readiness. Mr. Ayhan Mustafa Bhutto of the ECC and Climate Change Development Division highlighted the importance of clarifying institutional roles and revenue sharing arrangements to avoid jurisdictional uncertainty. Mr. Syed Bulent Sohail, Managing Partner at Sohail and Partners LLP, noted that legal certainty around carbon rights, contract enforcement and dispute resolution is essential for investor trust and community protection.<\/p>

Provincial perspectives were shared by Ms. Rizwana Anjum, Team Lead, Chief Minister Punjab Green Credit Program (CMPGCP) who highlighted that Punjab\u2019s green credit programme demonstrates early provincial initiative but requires strong linkage with national systems for consistency. Mr. Talha Hussain Faisal, Special Secretary, CCFE&WD, Khyber Pakhtunkhwa noted that provincial readiness relies on integrated data, strengthened institutional capacity and meaningful engagement with local communities.<\/p>

Closing the event, Mr. Zulfiqar Younas of the CVF V20 Secretariat emphasized that transparency and accountability must remain the foundation of Pakistan\u2019s carbon market architecture in order to strengthen its position as a credible and responsible climate finance partner. He appreciated TI Pakistan\u2019s role in leading the efforts in coordination with stakeholders to strengthen governance systems around carbon markets in the country. \u00a0<\/p>

The workshop concluded with a shared recognition that Pakistan stands at a turning point where coordinated action, strong legal foundations, transparent systems and inclusive governance will determine whether its carbon markets can attract high integrity global investment and project and deliver equitable climate benefits on the ground.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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