By Ayesha Saba

Pakistan has finalised a climate cooperation framework with South Korea, while a proposed carbon-market agreement with the Kingdom of Saudi Arabia (KSA) is under consideration, and the country has also shown interest in joining Japan’s Joint Crediting Mechanism.

According to a document available with Wealth Pakistan, another carbon fund, identified as NOGER, has also shown interest in Pakistani projects as the country pursues bilateral arrangements for carbon trading under the Paris Agreement.

The document said a Framework Agreement for Cooperation on Climate Change with South Korea, including voluntary cooperation under Article 6 of the Paris Agreement, has been finalised and will be signed soon.

A bilateral agreement with KSA under Article 6.2 of the Paris Agreement is also undergoing inter-ministerial consultation.

The document said Pakistan has also shown interest, through the Ministry of Foreign Affairs, in joining Japan’s Joint Crediting Mechanism.

Pakistan has already signed an agreement with Norway for engagement under Article 6.2 of the Paris Agreement. The agreement was signed in April 2026 and provides for an avenue for transferring high-quality emission reductions from Pakistani projects to Norwegian buyers.

A Norwegian fund, the Norwegian Article 6 Climate Action (NACA) Fund, has initially shortlisted seven Article 6 projects from the Ministry of Climate Change and Environmental Coordination pipeline, and is currently evaluating them.

Pakistan Policy Guidelines for Trading in Carbon Markets, 2024, are already in place, providing a regulatory framework for participation in international carbon-trading mechanisms under Article 6 of the Paris Agreement.

Detailed rules building on the policy guidelines are being finalised in consultation with the provinces to clarify procedures and requirements and remove administrative discretion in the processing of cases. The document said the final version of the Carbon Market Rules has been sent to the Law Division for vetting.

The absence of rules does not, however, hinder carbon-credit projects, as the ministry is issuing Letters of Intent and considering authorisation cases under Pakistan Policy Guidelines for Trading in Carbon Markets, 2024.

Credit: INP-WealthPk