Implement Regulatory Support and Incentives

• Government regulatory bodies (e.g., Ministry of Climate Change and Ministry of Finance) should facilitate CBAM compliance by offering regulatory support and financial incentives, such as tax breaks, subsidies, or low-interest loans, to industries investing in renewable energy.
• Environmental Protection Agencies (EPAs) should provide regulatory guidance on carbon management and reporting practices, especially for export-heavy sectors like textiles and steel.

Enhance Capacity for Carbon Reporting and Transparency

• Industry associations and Chambers of Commerce should build capacity among industries to report carbon emissions transparently.
• Training institutes and vocational bodies should develop training programmes for Tier 1 manufacturers on accurate carbon accounting and management practices.
• The Ministry of Commerce should create an official carbon reporting framework aligned with CBAM to ensure transparency across supply chains.

Promote Public-Private Partnerships (PPPs) for Technology Transfer

• The Ministry of Industries and Production should spearhead PPPs to facilitate the adoption of sustainable technologies.
• International organisations like the United Nations and World Bank should collaborate with the government to provide technical support and facilitate technology transfer to Pakistani industries.

Promote Green Hydrogen Initiatives for Industrial Decarbonisation

• The Ministry of Energy should establish a national strategy for integrating green hydrogen into the energy mix, particularly targeting high-emission sectors such as steel, cement and textiles.
• Research institutes and international partners should be engaged to conduct feasibility studies and pilot projects for green hydrogen applications.

Establish a National Climate Finance Strategy

• The Ministry of Finance and State Bank of Pakistan should develop a national climate finance strategy to attract international funding and close the adaptation financing gap.
• Climate finance task forces should be set up to coordinate funding opportunities, utilising digital dashboards for transparent tracking of fund allocation.
• International donors and private investors should be engaged to support Pakistan’s decarbonisation goals.

Foster Development of Voluntary Carbon Markets (VCMs)

• Securities and Exchange Commission of Pakistan (SECP) should establish a regulatory framework for VCMs, enabling industries to trade carbon credits.
• Private sector stakeholders should be encouraged to participate in carbon trading to offset emissions and promote sustainability.

Integrate CBAM Compliance within National Energy Policies

• The Ministry of Energy and Power should integrate CBAM compliance into national energy policies by setting clear targets for renewable energy adoption in energy-intensive sectors.
• Provincial energy departments should support investments in solar, wind, and hydrogen energy solutions, providing subsidies or incentives for on-site renewable energy generation.

Strengthen Export Compliance Support for Key Industries

• The Trade Development Authority of Pakistan (TDAP) should develop sector-specific compliance programmes to help exporters meet CBAM requirements.
• Export facilitation centers should be set up to assist exporters in obtaining necessary certifications and documentation for EU markets.

Support SMEs in the Transition to Low-Carbon Practices

• Small and Medium Enterprises Development Authority (SMEDA) and industry chambers should support SMEs in adopting low-carbon technologies and carbon accounting practices.
• Government grant programmes should be established to fund SME capacity-building and technology adoption.

Address Policy Gaps and Build SME Capabilities

• Policy advisory bodies should conduct thorough analyses to identify gaps in SME support and develop capacity-building initiatives that align with CBAM compliance.

Calculate and Plan for Carbon Footprint Reduction

• Industry bodies and environmental consultants should encourage industries to calculate their carbon footprints as a foundation for developing decarbonisation plans.

Leverage CBAM for Export Growth in Key Sectors

• The Ministry of Commerce and industry stakeholders should design strategies to enhance steel production and other high-potential sectors, leveraging CBAM compliance to boost exports.

Develop a Comprehensive Decarbonisation Strategy

• A cross-ministerial task force should be established to design a comprehensive national decarbonisation strategy, ensuring alignment across sectors and continuous monitoring.