Islamabad: Pakistan and Norway have signed a historic bilateral agreement, marking Pakistan’s entry into the international carbon market under Article 6.2 of the Paris Agreement. The deal, signed in Islamabad, aims to facilitate carbon trading, climate finance, and investment in clean energy and climate-smart agriculture.

According to Press Information Department, the memorandum of understanding represents a breakthrough in Pakistan’s climate diplomacy. Federal Minister for Climate Change and Environmental Coordination Musadik Malik highlighted the agreement as a pivotal step from carbon market preparedness to practical implementation, creating avenues for international cooperation and investment in Pakistan’s climate initiatives.

The agreement enables Pakistan to develop carbon-credit generating projects in sectors such as clean energy, agriculture, transport, and waste management, allowing the country to potentially sell the resulting emission reductions to Norway. Officials emphasized that the deal is expected to channel international finance into Pakistan, particularly as the nation faces recurring climate challenges like floods and heatwaves.

Norway’s Ambassador to Pakistan, Per Albert Ilsaas, remarked that the accord heralds a new era of bilateral environmental cooperation. He noted that Norway’s ambitious climate neutrality goals extend beyond its formal targets, with the country eager to support Pakistan through the Global Emission Reduction Initiative launched in 2024.

The partnership is seen as a significant boost to Pakistan’s access to climate finance and private-sector investment, aligning with the country’s low-carbon growth objectives under the Paris Agreement.