Faiza Tehseen

Pakistan can unlock international climate finance by establishing a smart MRV system. It is necessary to support the development of carbon markets and to meet environmental challenges, Dr. Sajid Amin Javed, Deputy Executive Director (Research) at the Sustainable Development Policy Institute (SDPI), told WealthPK.

“MRV (Monitoring, Reporting, and Verification) systems are crucial as they provide credibility in tracking climate actions and financial flows from both local and international donors and investors. MRV offers a systematic approach to validating the steps taken to reduce greenhouse gas (GHG) emissions.

“MRV data compilation and implementation also involve measuring energy consumption, tracking emissions from specific sources, and assessing changes in forest cover. With transparent reporting, verification can be supported by third-party audits to ensure accuracy and credibility.

“As enablers of climate investment and finance readiness, robust MRV systems form the backbone of transparent climate action financing in the country and help accelerate trust-building, credibility, and investor confidence. MRV not only tracks greenhouse gas emissions but also supports planning, accountability, and compliance. Countries with strong MRV frameworks are better positioned to drive climate finance.”

Dr. Sajid praised Ghana’s Integrated MRV System as a successful model that aligns emissions tracking with decision-making, finance mobilization, and investor engagement.

He noted that Pakistan has identified several high-potential sectors for carbon credit generation, including transport, electric mobility, mass transit systems, industrial energy efficiency, emission baselines, agriculture and land use, agroforestry and methane reduction, energy-saving cooking stoves, renewable transmission, waste-to-energy, green hydrogen, and ammonia.

He said, “There are concerns about regulatory and institutional readiness. The market exists, and so does the capital, but progress is hindered by a lack of regulatory clarity and stakeholder coordination.”

He welcomed the State Bank’s ongoing work on green taxonomy as a positive step but urged synchronized action across ministries and departments. To meet the 2030 Nationally Determined Contribution (NDC) targets, the development of a supportive legal and financial ecosystem is crucial for scalable investments.

Speaking to WealthPK, environmentalist Dr. Muhammad Akbar said, “Monitoring, Reporting, and Verification (MRV) systems are a vital component of any credible carbon market and also symbolize national readiness to adopt such mechanisms.”

He said that evolving trends in global carbon markets highlight their relevance for countries like Pakistan. These markets remain among the most affordable and cost-effective tools for reducing emissions while generating co-benefits for sustainable development. Pakistan is currently developing its national carbon registry and MRV systems, finalizing Article 6 bilateral frameworks, and launching capacity-building initiatives.

He said, “It is high time for the relevant Pakistani authorities to establish a proper work network to support MRV-related initiatives. To make Pakistan a low- to zero-carbon economy, the smart implementation of environment-focused initiatives, continuous and transparent monitoring, and raising public awareness are also necessary.”

Credit: INP-WealthPk