ISLAMABAD: Key stakeholders from across the country’s public and private sectors on Thursday gathered to address the transformative potential of the Carbon Border Adjustment Mechanism (CBAM) for industrial decarbonisation.

They were attending a policy dialogue hosted by the Sustainable Development Policy Institute (SDPI) in collaboration with GIZ Pakistan.

The session spotlighted how CBAM could propel Pakistan’s industries onto the global stage, enhancing export competitiveness and setting a precedent for sustainable practices.

The session, chaired by Additional Secretary at the Ministry of Climate Change and Environmental Coordination Zulfiqar Younas, centered around the country’s ambitious plans to engage in COP29 climate discussions as a unified voice within G77.

Mr. Younas announced Pakistan’s Climate Finance Forum to be held on November 12, positioning Pakistan at the forefront of climate finance advocacy for developing nations.

“Pakistan is committed to representing the needs of the Global South at COP29, advocating for equitable access to climate finance that reflects the challenges and goals of developing countries,” Mr Younas stated.

This forum will bring together key stakeholders to explore funding solutions that support Pakistan’s climate resilience and sustainable development agenda.

Building on these plans, Mr Younas shared that Pakistan would present 8 to 10 bankable carbon projects at COP29.

Designed to appeal to both compliance and voluntary carbon markets (VCMs), these projects represent investment opportunities across crucial sectors, with a focus on fostering private sector engagement in climate-aligned initiatives.

Mr Younas also introduced a national climate dashboard that the ministry is developing, a pioneering digital platform aimed at ensuring transparency in climate finance.

“The climate dashboard is an essential tool for accountability, allowing us to track climate finance inflows and project impacts with full transparency. It builds trust, particularly for investors looking to support Pakistan’s climate goals,” he emphasised.

Adviser for the Pak-German Climate and Energy Partnership at GIZ Islamabad Sobiah Becker highlighted Germany’s steadfast commitment to Pakistan’s sustainable transition, with over €500 million invested in clean energy and modernisation projects.

“This partnership is about building resilience and ensuring that Pakistan’s key sectors are ready for a climate-conscious global market,” she noted.

In her keynote address, Country Director of GIZ Pakistan Maria Poddey emphasised the urgency of aligning Pakistan’s industrial practices with global decarbonisation standards.

“The textile sector, central to Pakistan’s exports, must adopt sustainability measures to remain competitive in global markets,” she stressed, reaffirming GIZ’s support to help Pakistan navigate this transition.

Managing Director of the National Energy Efficiency and Conservation Authority (NEECA) Dr Sardar Mohazzam presented green hydrogen as a pivotal component in Pakistan’s pathway to industrial decarbonisation.

“The future is green hydrogen,” he said, detailing NEECA’s work on establishing hydrogen as a viable alternative for heavy industries like steel, cement, and textiles.

Dr Mohazzam stressed that as global economies adopt low-carbon technologies, Pakistan had a unique opportunity to leverage green hydrogen, which could transform energy-intensive sectors and lower the nation’s carbon footprint.

He outlined NEECA’s ongoing feasibility studies, focused on scaling green hydrogen production, reducing costs and integrating hydrogen into the energy mix to power industrial processes sustainably.

“By investing in green hydrogen, Pakistan can establish itself as a leader in clean energy solutions and secure a competitive edge in global markets increasingly defined by sustainable practices,” Dr Mohazzam noted.

CEO/Secretary General of the Overseas Investors Chamber of Commerce and Industry (OICCI) Muhammad Abdul Aleem underscored the critical role of Pakistan’s private sector in bridging the estimated $152 billion climate financing gap.

He advocated for a regulatory environment that encourages green investments and supports Pakistan’s commitment to sustainable growth.

Head of Compliances at the Ministry of Commerce Dr Nabeel Amin outlined capacity-building initiatives to ensure Pakistan’s major export industries were prepared for CBAM compliance, particularly the textile sector.

“Our goal is to future-proof Pakistan’s industries, enabling them to withstand global regulatory changes and remain competitive,” Dr Amin added.

GM of Corporate Sustainability and Chemical Management at Interloop Limited Fauz ul Azeem stressed the need for a robust carbon accounting framework to ensure CBAM compliance and stakeholder trust, while Head of Energy and Sustainability at Amreli Steel Abubakar Ismail emphasised that CBAM compliance presents a competitive advantage for Pakistan, especially in EU markets.

Moderated by lead of the Pakistan Industrial Decarbonisation Programme at SDPI Saleha Qureshi, the panel discussion explored the technical, regulatory and financial strategies essential for aligning Pakistan’s industries with global sustainability standards.

Panelists highlighted that while the private sector plays a transformative role, collaborative efforts with the government and international partners like GIZ are critical to realizing a resilient, low-carbon future.

In closing, Research Fellow at SDPI Dr Khalid Waleed, extended a vote of thanks, noting that CBAM represents a powerful opportunity for Pakistan to redefine its role in the global economy.

The experts also presented a number of recommendations on implementing regulatory support and incentives, enhancing capacity for carbon reporting and transparency, promoting public-private partnerships for technology transfer, promoting green hydrogen initiatives for industrial decarbonisation, establishing a national climate finance strategy and fostering development of voluntary carbon markets.