According to a new report released by Transparency International Pakistan, Pakistan has the potential to produce 40 million to 75 million tonnes of tonnes of carbon credit annually, from $ 400 million to $ 2.25 billion.
This report, carbon preparations for preparations in Pakistan: tackling the gaps of governance and protecting against the risks of integrity, highlights opportunities and challenges in the development of a reliable carbon market, while emphasizing the need for strong governance framework to ensure transparency and community trust.
The report states, “If carbon projects also pay attention to 10 to 15 percent of Pakistan’s annual greenhouse gas emissions, the country can open a substantial revenue limit from voluntary markets.” However, he added that the absence of a stable national emissions baseline has become an important obstacle.
This diagnosis warns that despite the extensive policy framework, Pakistan lacks ground technical capability to enforce complex devices such as extrusion accounting, monitoring and verification systems, carbon property laws, and market registration. It has recommended the establishment of a dedicated team of carbon markets within the Ministry of Climate Change and Provincial Departments.
Tie Pakistan Executive Director, Kashif Ali, said transparency was the biggest challenge. “Without clear and accessible information about decision -making, allocation, and safety measures for the affected communities, they rely on the mechanism that they trust,” he said. He called for clear reporting standards, benefits partnerships and strong channels for community participation.
The report introduces 10 recommendations, including strong data system development, a comprehensive carbon market law, institutional security measures for participation, and the formation of the National Carbon Coordination Council for carbon trading monitoring. It also emphasizes the importance of pilot projects, technical training at all levels of the government, and strong international links to enhance credibility and market access.
The results should help federal and provincial governments, international partners and civil society develop a strategy that puts carbon markets as an important source of climate financing and sustainable development, said TI Chairman, Justice (Retd) Zia Proz, Chairman of TI Pakistan, Justice (RATED) Zia Proz said.