In a significant move to tap into the global carbon market and attract foreign investors, Pakistan’s Ministry of Climate Change and Environmental Coordination (MoCC&EC) has joined forces with VerraStandards, the leading greenhouse gas (GHG) crediting program. This strategic collaboration aims to establish verified carbon offset initiatives and empower private project proponents and investors with the necessary expertise to thrive in the voluntary carbon market. The partnership signifies a major milestone in boosting Pakistan’s green growth.
VerraStandards: Driving Carbon Market Expertise
VerraStandards, operating the Verified Carbon Standard (VCS) Program and other standards in environmental and social markets, has been chosen as the partner for this initiative. The collaboration, announced on June 29, focuses on knowledge sharing and stakeholder education about carbon markets.
Through this partnership, the Ministry and Verra will prioritize capacity building for the voluntary carbon market and net-zero committee of Pakistan, shedding light on the VCS program and the Verra registry. Future training topics are expected to cover agriculture, forestry, and other land use methodologies, which hold immense relevance for Pakistan.
Unlocking Pakistan’s Carbon Market Potential
The Minister for Climate Change, Sherry Rehman, shared the exciting news on Twitter, highlighting the objective of empowering private project proponents and investors. Pakistan’s real potential to host carbon market projects can be realized through this collaboration, which equips participants with the necessary technical and administrative knowledge to navigate and engage in the voluntary carbon market successfully.
Pakistan’s partnership with VerraStandards marks a crucial step towards unlocking the country’s carbon market potential.
Implications for Climate Change Funding
Ammar Habib Khan, a macroeconomist, emphasizes the significance of this development for Pakistan, considering its vulnerability to climate change. Establishing a carbon market will enable Pakistan to generate financing by selling carbon credits and allocate the funds to support renewable energy projects. This initiative holds the potential to address the crucial funding required for climate change initiatives.
The Verra registry ensures transparency by listing information on registered projects, issued and retired units, and facilitating unit trading.
Verra Registry: Ensuring Transparency and Trading
Dr. Abid Qaiyum Suleri, head of the Sustainable Development Policy Institute (SDPI), explains that by partnering with Verra, Pakistan can become part of the Verra registry, which serves as the foundation for implementing Verra’s standards and programs. The VCS program allows the convenient registration of individual projects and jurisdictional programs. The Verra registry ensures transparency by listing information on registered projects, issued and retired units, and facilitating unit trading.
Pioneering Carbon Market Project in Sindh
Currently, the only project verified by Verra in Pakistan is the Sindh-based Delta Blue Carbon, which focuses on mangrove restoration. This verification has allowed the project to list its carbon credits on the Singapore-based carbon exchange, Climate Impact X (CIX). In a recent auction organized by CIX, the project successfully sold 50,000 tons of carbon-removal credits at an average price of $29.72 per ton.
Promising Outlook for Carbon Market Growth
With the increasing demand for carbon credits, the recent auction witnessed a 6.9% increase in per-ton prices, reaching as high as $50 per ton. This indicates a growing interest from companies in supporting climate initiatives through the purchase of carbon credits. Pakistan’s participation in the carbon market presents a significant opportunity for economic growth while contributing to global efforts to combat climate change.
With the increasing demand for carbon credits, the recent auction witnessed a 6.9% increase in per-ton prices, reaching as high as $50 per ton.
Conclusion:
Pakistan’s partnership with VerraStandards marks a crucial step towards unlocking the country’s carbon market potential. By leveraging Verra’s expertise and establishing verified carbon offset initiatives, Pakistan aims to attract foreign investors and raise financing for climate change initiatives. This collaboration holds the promise of sustainable green growth and positions Pakistan as an active player in the global carbon market.
