Page 44 - CMA Journal (Nov-Dec 2025)

Focus Section

Table 1: Na onal Climate Finance Strategy (NCFS): Category and Elements 3
Category Elements Description / Examples
Strategic Emphasis Whole-of-government alignment Coordination at the ministries, provinces, and reregulators
Integration into public budgeting Climate budget within federal and provincial budgets
Protection of vulnerable groups Target vulnerable populations and communities
Private-sector engagement Incorporates USD 50 million voluntary green investment
commitment of OICCI
National Climate Finance Portal Digital system that manages flows, transparency, and
investment matching
NCFS Strategic Domestic Resource Mobilization Public budgets, provincial planning, and public-private
Pillars partnerships (PPP)
International Climate Finance Green Climate Fund, Adaptation fund, MDB support, and
bilateral donors
Innovative Financial Instruments Green Sukuk, disaster and resilience bond, carbon
credits and blended finance
Monitoring & Evaluation Three-level accountability and reporting via the finance
portal
Pakistan Green Taxonomy (PGT) The synergy can be seen, for instance, in the NCFS, which
creates the need for capital and areas of interest (Energy,
The Pakistan Green Taxonomy serves as the technical Transport, and Water). In contrast, PGT provides the
integrity element that determines environmental integrity mechanism (SC, DNSH, Classification) to ensure
sustainability levels. It ensures that its activities are the capital mobilized through the NCFS's innovative
indeed green, based on core principles, ecological instruments is green and contributes to the long-term
objectives of the NDCs. The two policies encourage a
objectives, and classification .
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science-led, market-driven transition.
Table 2: Pakistan Green Taxonomy (PGT)- Category and Elements 4

Category Elements Description / Criteria
I. Core Principles Substan al Contribu on (SC)  Ac vi es must deliver measurable environmental
(To Qualify) benefits aligned with the objec ves.

Do No Significant Harm (DNSH)  Projects must avoid causing significant harm to any of
the other five environmental objec ves.
Minimum Social Safeguards  Compliance with na onal and interna onal standards
(MSS) for labour rights, human rights, and community
protec on.
 1. Climate change mi ga on
II. Environmental  2. Climate change adapta on
Objec ves 6 Priority Areas  3. Water resource sustainability
 4. Biodiversity protec on
 5. Pollu on preven on
 6. Circular economy promo on
Green  Fully aligned with 1.5°C pathways.
 Examples: Solar/wind power, EV manufacturing.
Amber (Transi on)  Ac vi es that offer significant short-term emission
III. Traffic Light reduc ons but are not fully "Green." These have a "sunset"
Classifica on date (e.g., 2030).
 Examples: Energy-efficient steel/cement produc on, hybrid
vehicles.
Red  Ac vi es deemed incompa ble with climate objec ves.
 Examples: Coal plants, diesel-based expansions.
IV. Priority Sectors Key Sectors  Energy (Renewables, efficiency, storage)
 Manufacturing (Steel, cement, tex les, bricks)
 Transport (EVs, public transit, rail)
 Construc on and buildings (Green building codes)
 Water and Waste (Treatment, recycling)
 ICT and data centres (Energy efficiency)
42 ICMA’s Chartered Management Accountant, Nov-Dec 2025