Karachi: Thanks to new legislation addressing climate change, the voluntary carbon credit market is expanding rapidly. Experts predict that Pakistan has the potential to earn up to one billion dollars annually through carbon credit exports.
This information was provided during a special briefing at the Climate Action Center for the Council of Economic and Energy Journalists. The briefing was conducted by Yasser, Mujtaba Baig, and environmental consultant Zoya Taniyu from the Climate Action Center.
Experts explained that although Pakistan’s contribution to global environmental pollution is less than one percent, the country suffers an annual economic loss of approximately four billion dollars due to climate change.
Rising temperatures are exacerbating the problem by increasing the concentration of harmful gases in the atmosphere. This, in turn, damages crucial crops such as wheat and cotton, reduces human productivity, and increases public health costs.
The briefing highlighted that absorbing one ton of carbon dioxide from the atmosphere through horticulture and agriculture could be equivalent to generating one carbon credit. Carbon credits from Pakistan can be sold on the global market for between 10 to 15 dollars each.
The voluntary carbon credit market has grown to a substantial volume of 950 billion dollars, with ongoing increases. Securing carbon credits requires both a consultant’s report and third-party verification, which are essential for credibility in the market.
Experts also pointed out that emissions from factories, vehicle exhaust, and untreated wastewater discharges into oceans significantly contribute to greenhouse gases, making the atmosphere more toxic. Pakistan, as a signatory to the France “Post-Industrial Net Temperature” agreement, is committed to limiting its net temperature increase to 1.5 degrees Celsius. However, over the past decade, Karachi alone has experienced a net temperature increase of 2 percent. The Paris Agreement emphasizes the need to reduce pollution levels to address these challenges effectively.
According to the Climate Action Center, the global carbon credit market is valued at 50 billion dollars. However, the OCCII estimates that this market may have already reached up to 500 billion dollars.
Sources have noted that, responding to international buyers’ demands, Pakistan’s textile export sector has started incorporating pollution reporting into its manufacturing processes. If Pakistani exporters fail to voluntarily report pollution, their products may face significant export challenges in global markets after 2028.
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