'Carbon markets can save $250b'

PM aide advocates transparent carbon trading to boost climate efforts

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ISLAMABAD:

Transparent cross-border carbon markets can reduce the cost of implementing nationally determined contributions (NDCs) by up to $250 billion annually, significantly enhancing Pakistan's climate action efforts.

The Coordinator to the Prime Minister on Climate Change and Environmental Coordination (MoCC), Romina Khurshid Alam, made this statement while emphasising the urgent need for robust climate action at a seminar titled "COP29 Commitments to COP30 Action: A Critical Analysis," held at the National University of Sciences and Technology (NUST) on Friday.

Highlighting the significance of trusted and transparent cross-border carbon markets, she reiterated their potential to reduce costs while strengthening Pakistan's climate strategies. Her remarks were aligned with findings from the global stocktake and the Intergovernmental Panel on Climate Change's (IPCC) Sixth Assessment Report, which underlined the global failure to meet the Paris Agreement target of limiting temperature rise to 1.5°C.

Alam underscored Pakistan's pivotal contributions at COP29, particularly in technical negotiations and bilateral engagements, which have positioned the country as a leader in global climate discourse.

The seminar also featured contributions from MoCC panellists, including Additional Secretary Zulfiqar Younas, Carbon Market Specialist Sana Rasool, and NUST scholars Dr Faisal Abbas, Dr Majid Ali, and Dr Salman Atif. Together, they explored carbon credit systems and the critical role of academia in addressing climate impacts.

On financial opportunities, Alam discussed the $300 billion annual core commitment under the Baku finance goal and the potential $1 trillion in carbon market flows by 2050. She stressed that these resources could provide substantial relief for Pakistan's climate projects, particularly in mitigation and adaptation. "Pakistan must strategically position itself to access these financial flows to support its climate projects," she urged.

She also highlighted the potential impact of over $730 million pledged for climate projects starting in 2025. These funds, she noted, could address the damages caused by climate-induced disasters, such as the devastating floods of 2022.

On gender-responsive climate action, Alam pointed out the extension of the Lima Work Programme on Gender, which creates opportunities to empower grassroots women's organisations and indigenous women in climate adaptation and mitigation efforts.

Furthermore, she stressed the importance of improving data management and reporting systems to meet international requirements. These measures would enable Pakistan to benefit from capacity-building initiatives while strengthening climate governance through enhanced transparency frameworks.

Alam expressed the need to build upon the momentum of leadership demonstrated at COP29. She noted that, with the support of evidence-based insights and partnerships with academic institutions like NUST, Pakistan could solidify its position as a key player in global climate governance. "Academia can play a vital role in ensuring that Pakistan remains competitive in the emerging global climate finance and carbon markets," she added.

She also highlighted the Greentech Hub, an innovative initiative aimed at fostering technological solutions to help Pakistan's industries meet international climate benchmarks. "A strategic focus on these opportunities will align Pakistan's climate goals with its broader sustainable development priorities," she concluded.