Pakistan and Norway Establish Landmark Carbon Market Deal
Pakistan and Norway signed a bilateral agreement under the Paris Agreement, enabling international carbon trading and investment in clean energy. This deal represents a significant advancement in Pakistan's climate strategy, facilitating project development in multiple sectors such as renewable energy and agriculture.
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Pakistan has signed its inaugural bilateral carbon market agreement with Norway, under Article 6.2 of the Paris Agreement, allowing the development of carbon-credit projects in renewable energy, agriculture, transport, and waste management. This agreement is expected to channel international finance into Pakistan, addressing the country's urgent climate challenges while promoting a shift towards a low-carbon economy.
Norway, aiming for climate neutrality by 2030, intends to purchase Internationally Transferred Mitigation Outcomes (ITMOs) beyond its formal commitments, thereby enhancing bilateral cooperation. The deal is pivotal for creating opportunities for investment and facilitating Pakistan’s climate initiatives, as it prepares to operationalize its carbon market by establishing necessary regulatory frameworks.
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