ISLAMABAD: Pakis­tan and Norway on Wedn­esday signed the former’s first-ever carbon market deal under the Paris Agreement, according to an official press release.

“Pakistan and Norway on Wednesday signed the country’s first landmark bilateral agreement under Article 6.2 of the Paris Agreement, opening the door to international carbon trading, climate fina­nce and major investment in clean energy and climate-smart agriculture,” the statement said.

To tackle climate cha­nge and its negative imp­acts, world leaders at the UN Climate Change Conf­e­rence (COP21) signed the Paris Agree­ment on Dece­mber 12, 2015, according to the United Nations.

The agreement included commitments from all cou­n­tries to reduce their emissions and work together to adapt to the impacts of climate change, and called on countries to strengthen th­e­ir commitments over time.

The said that a memorandum of understanding (MoU) signed in Islama­bad under the auspices of the Ministry of Climate Cha­nge and Environm­ental Coordination mar­ked Pakistan’s “formal entry into the global carbon market and is being seen as a breakthrough in the country’s climate diplomacy”.

Under the agreement, Pakistan will be able to develop carbon-credit generating projects in sectors such as clean energy, agriculture, transport and waste management and potentially sell the resulting emission reductions to Norway, the statement said.

Minister for Climate Change and Environmental Coordination Musadik Malik termed the agreement a “historic milestone”, saying it would shift Pakistan from carbon market preparedness to practical implementation, the statement added.

“This is Pakistan’s first bilateral agreement under Article 6.2 and an important step towards implementation,” Mr Malik said.

“It creates a credible pathway for international cooperation and investment in Pakistan’s climate priorities.”

Mr Malik said the agreement would strengthen Pakistan’s position in international carbon markets and create new opportunities for the country’s emerging green economy. The climate minister said Pakistan had already put in place the country’s first national policy guidelines for carbon trading, approved by the federal cabinet in January 2025, and was now moving to establish rules, reporting systems and bilateral arrangements needed to operationalise the market.

He said Pakistan had strong mitigation potential in sectors such as renewable energy, agriculture, transport and waste management, and that the agreement would encourage project developers and investors to move forward.

Addressing the signing ceremony, Norway’s Ambassador to Pakistan Per Albert Ilsaas said the accord marked the beginning of a new era in bilateral environmental cooperation, the statement added.

“Pakistan is among the countries most affected by climate change, and we believe this partnership can deliver both measurable emission reductions and real development benefits,” he said.

Additionally, he noted Norway’s goal to become climate neutral by 2030 its interest in purchasing ITMOs under Article 6 to exceed its climate targets.

Ilsaas said Norway’s $1.5 billion Global Emission Reduction Initiative, launched in 2024, would offer carbon finance to countries like Pakistan. He noted Norway’s focus on large-scale programmes in renewable energy, industry, and agriculture rather than individual carbon-credit projects.

Norway has signed similar deals with Benin, Indonesia, Zambia, Jordan, and Senegal, aiming to purchase 15 million carbon credits by 2030. The ambassador also urged Pakistan to propose a broader project pipeline, highlighting the Zhenfa 100MW solar and Indus wind projects as potential collaborations.

Both sides agreed the pact could boost Pakistan’s access to climate finance and private investment while supporting low-carbon growth and its Paris Agreement commitments.

Published in Dawn, April 2nd, 2026