LAHORE: As carbon markets have gained prominence owing to the evolving climate conditions and global socioeconomic landscape, a World Bank Mission on Thursday

met Punjab government officials to explore opportunities for developing a cooperation strategy and enhance the province’s participation in the emerging carbon credits market.

A carbon market is a specialised type of financial market, through which carbon credits can be bought and sold. Carbon credits are permits that allow the purchaser to emit a certain amount of carbon dioxide or other Green House Gases (GHGs), while a carbon credit is issued against one ton of Carbon dioxide reduced.

The meeting was presided over by Planning and Development (P&D) Board Secretary Dr Asif Tufail.

During the meeting, World Bank Mission head Carbon Market Specialist Morten Pedersen stressed that the country’s natural resources should be harnessed, developed, and conserved to offset emissions and bolster economic growth, aligning with both national and global net-zero objectives.

The meeting was briefed that the GHG emissions are widely recognised as a major contributor to global warming and its harmful effects around the world.

Carbon markets put a price on these emissions, rewarding the countries and businesses that reduce their emissions over time and create financial disincentives for those emitting more than their share.

The Punjab government officials say Pakistan, endowed with abundant natural resources, has immense potential for the development of a thriving carbon market, drawing inspiration from neighboring countries like China and India.

The meeting participants reviewed the ongoing and upcoming Annual Development Programme (ADP) schemes, as well as World Bank-financed projects, to assess their potential for generating carbon credits.

The discussions also covered avenues for policy and technical support to prepare the Punjab government for effective engagement in carbon finance through Partnership for Market Implementation Technical Assistance (PMITA).

Dr Tufail emphasised the importance of collaboration between various relevant departments regarding carbon credit policies.

This interactive dialogue aimed to foster a better understanding of the framework needed for successful implementation.

He announced that a Climate Finance Unit (CFU) would be established at the P&D Board in the coming week that would focus on carbon credit financing and provide comprehensive support to government departments.

He also indicated that a detailed session on carbon credits financing would be organised, in partnership with development allies, to advance Punjab’s efforts in this critical area.

The secretary says the government is committed to create an enabling environment for market penetration, supporting the initiation and execution of green projects across forestry and other land use, wetlands, agriculture, waste management, industry, transport and the energy sector.

He says a particular emphasis is being placed on the projects that yield substantial co-benefits/sustainable development impacts and benefit communities beyond mere emission reduction.

He says the participation of the private sector presents an emerging opportunity, as it could offer critical financial support for the implementation of carbon trading mechanisms.

Member Energy Sadaqat Hussain, Senior Chief External Capital Assistance (ECA) Saba Asghar, Punjab Small Industries Corporation Managing Director Saira Omar, World Bank Disaster Risk Management (DRM) Specialist Bilal Khalid, Environment Protection Department Additional Secretary Tariq Hussain, Senior Chief Agriculture Mr Arif, Chief Economic Development Musadiq Watto, Chief Urban Development Zeeshan Anwar, Chief Local Govt Nouman Shakeel and other officials concerned attended the meeting.

Published in Dawn, October 11th, 2024