Page 76 - CMA Journal (Nov-Dec 2025)

Focus Section

By: ICMA Research and Publications Department

Strengthening Pakistan’s Climate Response:

Reforming Finance, Carbon Markets, and ESG Governance

Preamble assurance programs. It also supports the development of
Panda and green bonds through technical advisory,
Pakistan faces a pressing climate paradox as it structured use of proceeds tracking, and post issuance
contributes less than 1% of global greenhouse gas impact reporting. Integrating ESG into financial decision
emissions yet remains among the most climate affected making is another critical pillar, with practical
countries globally. The 2022 floods alone submerged one measurement standards, assurance guidelines, and ESG
third of the country, displaced over 8 million people, and linked lending frameworks, while institutional
caused losses exceeding USD 30 billion, highlighting the strengthening is achieved through technical support to
urgency of addressing its acute vulnerabilities. These regulators, public, private platforms for bankable project
challenges are compounded by a fragmented climate pipelines, and capacity building for provincial institutions
finance architecture that relies heavily on concessional on carbon revenue, measurement, reporting, verification,
loans, an underdeveloped carbon market with limited and fiscal reporting.
measurement, reporting, and verification systems, a
disproportionately low adaptation finance pipeline, Pakistan’s Climate Vulnerability and
weak private sector engagement, fragmented CO2 Emissions Trend (2015–2024)
governance and transparency, and limited
operationalization of climate justice and loss, and Pakistan remains highly vulnerable to climate change
damage mechanisms. despite low per capita CO2 emissions. Between 2015 and
2021, emissions rose to 243.6 million tons (1.0 ton per
The ICMA Research and Publications Department
person) due to population growth, fossil-fuel reliance,
emphasizes that overcoming these gaps requires
industrial expansion, and post-COVID recovery. By 2024,
integrity driven, market enabled reforms. ICMA Pakistan
emissions fell to 179.8 million tons (0.7 ton per person) as
proposes a comprehensive framework that focuses on
economic slowdown, greater hydropower and
professionalizing the carbon market through
renewable adoption, energy efficiency, and alignment
standardized accounting, costing, pricing, and ICMA
with updated NDC commitments helped curb emissions.
certified measurement, reporting, and verification and
Table 1: Carbon Emission in Pakistan from 2015-2024
Year CO₂ emission per Annual CO₂ emission Carbon Emission in Pakistan (2024-2015)
person (tonne) (million tons) Annual CO emission (million tonnes) CO emission per person (tonnes)
2024 0.7 179.8 2 2
2023 0.8 186.9 300 1.2
2022 0.9 212.0 250 1
2021 1.0 243.6
2020 0.9 215.5 200 0.8
2019 0.8 190.8 150 0.6
2018 0.9 203.5 100 0.4
2017 1.0 212.0
2016 0.8 176.7 50 0.2
2015 0.7 144.9 0 0
Source: Our World in Data 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
h ps://ourworldindata.org/profile/co2/pakistan
74 ICMA’s Chartered Management Accountant, Nov-Dec 2025