Pakistan and Norway Finalize First Carbon Market Agreement Under Paris Agreement
Pakistan has signed its inaugural bilateral agreement with Norway under Article 6.2 of the Paris Agreement, facilitating entry into international carbon markets. This agreement will enhance Pakistan's capacity to develop carbon credit projects and attract climate finance amid increasing climate risks, including severe flooding and heatwaves.
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On April 1, 2026, Pakistan and Norway signed a memorandum of understanding enabling Pakistan to develop carbon credit projects and transfer emission reductions as internationally transferred mitigation outcomes (ITMOs). This marks Pakistan's first bilateral agreement under Article 6.2 of the Paris Agreement, transitioning from policy preparation to implementation.
The agreement will allow carbon credits generation in sectors such as renewable energy, agriculture, transport, and waste management. Norway's Ambassador to Pakistan emphasized the partnership's potential for measurable emission reductions and development benefits. The deal is expected to improve Pakistan’s access to climate finance and support low-carbon growth strategies, crucial as the country faces heightened climate challenges.
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