As global leaders convene in Brazil for COP30, carbon markets are expected to command significant attention. This year’s climate gathering is anticipated to focus on turning climate pledges into concrete action, particularly in areas such as climate finance, loss & damage mechanisms and strengthening global carbon markets under Article 6 of the Paris Agreement.

For many developing countries, including Pakistan, carbon trading is viewed as a pathway to attract climate finance and encourage low carbon development. Yet, the discussion must go beyond the promise of revenue and focus on the systems and safeguards required to make the participation of developing countries and communities in these markets credible and fair.

Pakistan’s carbon markets became functional in early 2025, following the approval of federal guidelines under Article 6. The country is at an early stage of shaping its carbon market framework. Government entities have begun working on policies related to emissions trading and cooperative approaches under Article 6 of the Paris Agreement. The country has also shown interest in nature-based mitigation activities. These directions are understandable, given the need to mobilize resources for climate action. However, the success of any market........

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