Islamabad, April 1, 2026: Pakistan and Norway on Wednesday signed the country’s first-ever carbon market agreement under the Paris Agreement, marking a major step in climate diplomacy and sustainable development.
According to an official statement, the landmark bilateral agreement—signed under Article 6.2 of the Paris Agreement—opens new avenues for international carbon trading, climate finance, and investment in clean energy and climate-smart sectors.
The memorandum of understanding (MoU), signed in Islamabad under the auspices of the Ministry of Climate Change and Environmental Coordination, signals Pakistan’s formal entry into the global carbon market and is being viewed as a significant breakthrough in the country’s climate policy framework.
The Paris Agreement, adopted during the COP21 on December 12, 2015, commits countries worldwide to reduce greenhouse gas emissions, enhance climate resilience, and strengthen cooperation to address the impacts of climate change.
Under the new agreement, Pakistan will be able to develop carbon credit-generating projects in sectors such as clean energy, agriculture, transport, and waste management. The resulting emissions reductions can potentially be traded with Norway, enabling the country to attract foreign investment while advancing its climate goals.
Officials say the agreement is expected to unlock new opportunities for sustainable growth, while positioning Pakistan as an emerging player in global carbon markets.
