The global market for voluntary carbon credits is projected to reach a staggering $50 billion by 2030. However, experts emphasize that Pakistan’s lack of a robust carbon market policy will hinder the country from capitalizing on this potential financial support. Basit Ghauri, a senior program associate at Renewables First, underscores the importance of a strong carbon market policy for the development of mitigation projects.
This article delves into the challenges faced by Pakistan, the significance of carbon markets, and the ongoing efforts to bridge the gap.
Impacts of the Absence of a Carbon Market Policy:
Pakistan’s inability to tap into the potential financial support hampers the development of mitigation projects.
The absence of a robust carbon market policy poses challenges for initiatives like carbon offset projects.
Without a well-defined policy, Pakistan may miss out on the opportunity to leverage additional international finance tailored towards carbon markets.
Significance of Carbon Credits and Carbon-Removal Projects:
Carbon credits provide a mechanism for carbon emitters to offset their environmental impact by investing in eco-friendly ventures.
Carbon-removal credits are generated through schemes like tree plantation and forest protection, preserving areas that might otherwise be destroyed for development activities.
Challenges Faced by Pakistan:
Lack of institutional capacity and coordination among relevant stakeholders hinder the development and implementation of a carbon market policy.
Insufficient awareness and understanding of the benefits and opportunities of carbon markets among potential project developers and buyers.
Limited access to finance and technology for low-carbon development poses a barrier to participation in carbon markets.
Inadequate data and monitoring systems impede accurate measurement and verification of emissions reductions.
This exemplary cross-cutting project addresses both mitigation and adaptation outcomes, creating resilience within local communities.
Potential Issue of Double Counting:
Pakistan’s ambitious emission reduction targets, based on its nationally determined contributions (NDCs), could be affected by carbon offset projects.
Leveraging international finance through the export of carbon credits may lead to a scarcity of projects at the national level.
Careful consideration and coordination are necessary to ensure that carbon offset projects align with Pakistan’s NDC commitments.
The Delta Blue Carbon Project:
The Delta Blue Carbon Project, initiated in 2015, aims to offset 142,050,139 tCO2e of emissions by restoring and conserving 247,112 hectares of mangroves in Sindh’s coastal areas.
This exemplary cross-cutting project addresses both mitigation and adaptation outcomes, creating resilience within local communities.
Collaborative efforts involving authorities, organizations like the World Wildlife Fund (WWF), and the Sindh forestry department protect mangrove areas from threats posed by the land mafia.
The absence of a robust carbon market policy poses challenges for initiatives like carbon offset projects.
The Role of the National Committee on the Establishment of Carbon Market (NCEC):
Established in 2018, the NCEC collaborates with the UN Environment Programme (UNEP) to develop a coherent framework for carbon markets.
The NCEC plays a crucial role in assisting projects in accessing global carbon markets and navigating the challenges.
Initiatives to Bridge Gaps:
The SDPI signed a project with the Danish embassy called “Unlocking pathways to support implementation of carbon markets in Pakistan” to address knowledge gaps and expedite discourse.
The project aims to enhance capacity building and advocate for clear policies and frameworks at both provincial and federal levels.
Communication and outreach activities will raise awareness about carbon markets’ benefits and opportunities.
Conclusion:
Establishing a robust carbon market policy is crucial for Pakistan to unlock its potential in the global market for voluntary carbon credits.
Addressing challenges related to institutional capacity, coordination, awareness, and access to finance and technology will pave the way for active participation in carbon markets.
Ongoing initiatives, collaborations, and increased capacity building will empower Pakistan to make significant strides in its climate mitigation journey while reaping economic and environmental benefits.
