Pakistan just announced a new policy that will let companies and investors make money by funding planet-friendly projects, reported The News International.
The announcement happened at a major climate conference in Baku, Azerbaijan, where Pakistani leaders shared their vision for attracting more green investment to the country.
The policy creates clear rules for carbon markets, which let companies offset their environmental impact by supporting eco-friendly projects. For example, Microsoft already bought credits from Pakistan's Delta Blue Carbon initiative, showing how these markets can boost both the economy and sustainability.
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Carbon offsetting is a polarizing framework for companies to lower their net carbon impact, as it can allow a company to say it has reached or is nearing a goal of net zero without significantly reducing its own pollution. Proponents, of course, say investing in companies that work to offset that carbon pollution through projects such as planting trees is much better than nothing. There have nonetheless been carbon credit programs alleged to be "bogus," such as protecting forests facing no threat, but if Pakistan sets appropriate standards and all funding does route properly to meaningful projects, this should be avoided.
If successful, there will be more opportunities for everyday Pakistanis to benefit from nature-protecting projects like forest conservation and tree planting. The policy will create new jobs while making the air cleaner and protecting natural spaces that help cool down the Earth.
"Pakistan is ready to work with private companies and international partners to build carbon markets that attract green investments," said Romina Khurshid Alam, who coordinates climate action for Pakistan's prime minister, according to The News.
The government spent two years developing this framework to match international standards. "This policy sets the stage for both voluntary and required carbon markets while making sure we can track and verify the benefits," explained Aisha Humera Moriani, secretary of Pakistan's Ministry of Climate Change, per The News.
"The policy also includes capacity-building programs for stakeholders and sectoral guidelines to ensure projects meet global compliance and drive real, measurable climate benefits."
Some challenges remain, according to regional expert Salaal Hasan, CEO of Ahya's Tawazan Marketplace. He told The News that Pakistan needs its own rating systems since he believes current ones often undervalue Pakistani projects because of economic factors. But he sees enormous potential, especially if the country can cut out expensive intermediaries and keep investment flowing into local communities.
The policy should get final approval next month. Pakistan plans to create special teams to oversee the program and ensure it delivers benefits for people and the planet.
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