Pakistan to launch 'National Green Taxonomy' by April

Pakistan is preparing to launch guidelines defining standards for sustainable economic activities. This initiative, called the 'National Green Taxonomy,' aims to help classify projects based on their environmental impact. The draft of this taxonomy is expected to be released next month. The Senate Standing Committee on Climate Change and Environmental Coordination discussed the project in a recent meeting. State Bank Governor Jameel Ahmad explained that the taxonomy will provide a common definition for companies on what qualifies as environmentally sustainable. This classification is designed to align economic activities with national goals for reducing carbon emissions. For instance, steel manufacturers must reduce emissions, ensure ethical sourcing, and use recycled materials to be recognized as sustainable. The taxonomy will help financial institutions and investors make informed decisions about funding initiatives that meet these criteria. Pakistan will be the third country to implement such a taxonomy, following Bangladesh and Sri Lanka. The complete draft is expected to be available in early April. The criteria will assess sectors like agriculture, manufacturing, transport, and energy based on their economic contribution and greenhouse gas emissions. Senator Sherry Rehman emphasized the importance of involving provinces to support the implementation of the taxonomy. Committee members stressed the need for clear adaptation plans to receive green funding and called for communication efforts, especially to engage farmers in rural areas. Business representatives highlighted the need to include small and medium enterprises as well as the informal sector in the green taxonomy for greater impact.