Page 77 - CMA Journal (Nov-Dec 2025)

Focus Section

Climate Action Measures by Government and Institutions in Pakistan

Key Details (2024–25)
Climate Financing
Launched at COP29 (2024); target e

(around USD 348 billion by 2030); introduces climate-responsive
public investment & monitoring frameworks
Sovereign Green Sukuk (Pakistan’s first) Issued in 2025 to finance renewable energy & climate-resilient
infrastructure (dams, clean energy); aligned with Green Budget
Tagging
Green Budget Tagging Federal budget expenditures tagged for climate relevance to
improve transparency & climate accountability
Carbon Market Policy Guidelines Announced at COP29 (2024); establishes voluntary & compliance

Agreement
ADB Climate & Disaster Resilience Program
risk financing & green sukuk issuance
World Bank Country Partnership Framework
(CPF)
Provincial Climate & Environmental Funds Punjab Climate & Environmental Endowment Fund (USD 50
million); provinces aligning P
ESG Reforms
ESG Disclosure Guidelines (Voluntary) Issued in June 2024; aligned with IFRS-ISSB, TCFD; encourages
structured ESG & climate risk disclosures by listed companies
Mandatory Sustainability Governance
Reforms -
harassment policies

Green Banking & Sustainable Finance Green Banking Guidelines; renewable energy refinance schemes;
Framework in financial supervision
Defines environmentally sustainab
banks & investors
UK–Pakistan Green Compact Launched 2025; GBP 35 million to mobilize climate finance,

Updated NDC (NDC 3.0)
2030; finance-linked climate commitments

Insights from Developed Economies: China – Green Finance,
A Comparative Review Carbon Markets, and
Sustainable Investment
Pakistan can draw important lessons from developed
economies, where large-scale climate finance, China has rapidly emerged as a
high-integrity carbon markets, and integrated ESG global leader in sustainable
frameworks have been successfully implemented. By finance and carbon markets, issuing a record USD 70.3
studying how countries like China, Japan, Singapore, billion in certified green bonds in 2025 [over 17% of
Sweden, Finland, Denmark, and Switzerland link carbon global issuance] to finance renewable energy, clean
pricing, green bonds, and sustainable investments to transport, and emissions-reduction projects, and to
national climate goals, Pakistan can adopt practical signal its strategy of leveraging debt markets for climate
strategies to strengthen its climate finance ecosystem, investment while planning further international green
enhance market credibility, and accelerate the transition sovereign bond issuances to attract global capital.
from climate vulnerability to resilience.

ICMA’s Chartered Management Accountant, Nov-Dec 2025 75