Pakistan and Norway have signed a historic carbon market deal under the Paris Agreement, marking Pakistan’s first bilateral carbon trading agreement. The pact opens opportunities for climate finance, clean energy, and climate-smart agriculture investments.
The agreement, signed on April 1, 2026, in Islamabad, is based on Article 6.2 of the Paris Agreement. It allows Pakistan to generate carbon credits from projects in renewable energy, agriculture, transport, and waste management, which can be sold to Norway.
Climate Minister Musadik Malik called the deal a “historic milestone” and said it will move Pakistan from carbon market readiness to actual implementation. He emphasized that the agreement creates pathways for international investment in the country’s climate priorities.
The MoU will help strengthen Pakistan’s position in international carbon markets while supporting its emerging green economy. Malik highlighted that carbon markets should finance transition pathways, create jobs, and provide benefits to communities.
Pakistan had approved its first national policy guidelines for carbon trading in January 2025. The country is now setting rules, reporting systems, and bilateral arrangements to operationalize the carbon market and attract project developers and investors.
Norway’s Ambassador Per Albert Ilsaas said the deal marks a new era of bilateral environmental cooperation. Norway aims to achieve climate neutrality by 2030 and plans to purchase carbon credits beyond its national targets, supporting Pakistan’s low-carbon development.
The ambassador also invited Pakistan to present a broader pipeline of projects, including solar and wind energy ventures. Both countries agreed that the pact could boost Pakistan’s climate finance, attract private-sector investment, and help meet its Paris Agreement commitments.
