Pakistan Seals First Carbon Market Deal with Norway

Pakistan has officially entered the global carbon market through its first bilateral agreement with Norway under Article 6.2 of the Paris Agreement. This historic memorandum of understanding, signed recently, opens avenues for international carbon trading, climate finance, and substantial investments in Pakistan's clean energy and climate-smart agriculture sectors.

The accord enables Pakistan to generate carbon credits from projects in renewable energy, agriculture, transport, and waste management, with Norway expressing interest in purchasing these emission reductions. Minister for Climate Change Musadik Malik hailed the agreement as a "historic milestone," marking a transition from preparedness to practical implementation of carbon trading.

Norway's Ambassador to Pakistan, Per Albert Ilsaas, stated that the partnership aims to deliver measurable emission reductions and development benefits. Norway plans to use purchased emission outcomes to exceed its climate targets, not merely meet them, supporting its goal of climate neutrality by 2030. The Norwegian Global Emission Reduction Initiative provides carbon finance to countries like Pakistan.

This new pact is expected to significantly enhance Pakistan's access to climate finance and private-sector investment, aiding its pursuit of low-carbon growth and adherence to Paris Agreement commitments. Norway is interested in large-scale sectoral cooperation, particularly in renewable energy, industry, and agriculture, and has previously signed similar agreements with several other nations.