Country can earn $1b annually in carbon credit exports: experts

Pakistan incurs annual economic loss of $4b due to climate change

KARACHI:

Experts have revealed that a lucrative opportunity has emerged for Pakistan in the form of a voluntary carbon credit market, driven by climate change legislation as a result the country can potentially earn a staggering $1 billion annually by exporting carbon credits.

This revelation was made at a special briefing organised for the Council of Economic and Energy Journalists at the Climate Action Centre recently. Climate Action Centre Director Yasir Hussain and environment consultant Zoya Tanyu, along with Mujtaba Baig, provided insightful details on this emerging market.

Environmental experts warn that despite contributing less than one per cent to global pollution, Pakistan faces devastating consequences from climate change, incurring an annual economic loss of $4 billion. Rising temperatures not only intensify toxic gas emissions but also ravage key crops such as wheat and cotton. As productivity drops, public healthcare costs rise.

According to experts, Pakistan can capitalise on the booming carbon credit market by harnessing the power of horticulture and agriculture to absorb carbon dioxide.

Experts revealed that the voluntary carbon credit market has swelled to an impressive $950 billion and continues to grow. A consultant report and its third-party verification are the basic requirements for carbon credit.

Experts warn that massive amounts of greenhouse gases are polluting the air and climate due to the unchecked discharge of untreated industrial wastewater into the waterways and vehicle emissions.

Pakistan, a signatory to the Paris Agreement, aims to limit the net temperature increase to 1.5%. However, the country faces a challenge, particularly in Karachi, where the net temperature increase has been 2% over the last decade.

Under the Paris Agreement, reductions in pollution rates are essential. According to the Commit Action Centre, the global carbon credit market is $50 billion. However, OCCI has estimated that the global carbon credit market has reached $500 billion.

Pakistan's textile export industry has begun disclosing pollution levels in manufacturing, driven by foreign buyers' demands, sources said, adding that if Pakistani product exporters do not report pollution voluntarily, the export of their products to the global markets may be at risk after 2028.