Pakistan and Germany hold high-level meeting for carbon market strengthening

Prominent government leaders from Pakistan and Germany met during a high-level bilateral meeting organized at the Ministry of Climate Change and Environmental Coordination (MoCC&EC), to discuss shared goals for strengthening Pakistan’s carbon market rules and regulations, policies, integrity and infrastructure.

This bilateral meeting was held under the patronage of Secretary (In charge) MoCC&EC, Ms. Aisha Humaera, who stated that she hopes that the technical expertise and capacity building support provided by the German government will help create  robust carbon projects with high environmental integrity that will support NDC implementation and benefit communities. She added that she looks eagerly forward to Pakistan’s first carbon market transaction and signing bilateral agreements with at least two counties for Article 6 cooperation this year as it is a priority for the Ministry of Climate Change to leverage climate financing.

As a leading global advocate for the scaling up of carbon markets, the German Federal Ministry for Economic Affairs and Climate Action (BMWK) has supported the implementation of Article 6 of the Paris Agreement in Pakistan through the Supporting Preparedness for Article 6 Cooperation (SPAR6C) programme. SPAR6C has assisted the Government of Pakistan in the development of carbon market guidelines by providing expertise, capacity building and technical reviews. The program is led by the Global Green Growth Institute (GGGI), with implementation in Pakistan led by UNEP Copenhagen Climate Centre (UNEP-CCC) and supported by GFA Consulting Group.

High-integrity carbon markets

Also in attendance was His Excellency, German Ambassador to Pakistan, Alfred Grannas. BMWK was represented by SPAR6C programme focal points Malin Ahlberg and Thomas Forth. SPAR6C was represented by GGGI Global Program Manager, Mr. Marshall Brown and consortium partner lead in Pakistan from UNEP-CCC, Ms. Xianli Zhu.

“Germany is supporting Pakistan in building a high-integrity carbon market under Article 6, ensuring a strong foundation for market-based climate action. Through the SPAR6C program, we are strengthening institutional capacity, refining regulatory frameworks, and advancing technical expertise to enhance Pakistan’s preparedness for international carbon transactions,” shared His Excellency, Mr. Grannas.

Experts from BMWK and the SPAR6C programme are visiting Pakistan to undertake a series of strategic and technical discussions increasing the visibility and awareness of opportunities through Article 6 carbon markets and the SPAR6C program in Pakistan.

“This collaboration through the SPAR6C program establishes a strong foundation for attracting investments, scaling-up carbon finance and thus positioning Pakistan to effectively leverage market-based solutions for long-term emissions reductions and sustainable growth,” said Thomas Forth, Senior Expert, BMWK.

A pipeline of Article 6 projects

SPAR6C is helping develop a pipeline of viable carbon market projects, such as the Lakhodair Landfill Project in Punjab, as well as support for establishing bilateral agreements for transactions with purchasing countries were also discussed, followed by a high-level discussions on policy integration and implementation strategies for carbon markets.

“GGGI is pleased to be able to support across the full spectrum of carbon market implementation, from readiness under SPAR6C to facilitating bilateral cooperation through the Carbon Transaction Facility. We are looking forward to working closely with the government of Pakistan on developing a pipeline of carbon projects that can attract co-benefits,” said Marshall Brown, Programme Manager, GGGI.

Xianli Zhu, Senior Expert at UNEP-CCC, commented that in order to foster a conducive environment for carbon market knowledge and expertise, the SPAR6C programme has worked on various toolboxes, guides, sectoral reports and mentorship programs in Pakistan.

The bilateral meeting will be followed by several meetings during the visit with involvement of Federal and Provincial Governments to deliberate on interprovincial coordination and strategic priorities for Article 6 implementation under SPAR6C Program will be further discussed.