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Pakistan’s Climate Transition Needs Put at $565.7 Billion by 2035

Revised ESG disclosure rules aligned with the Pakistan Green Taxonomy seek to steer capital toward projects that meet standardized environmental tests.

Overview

  • The investment estimate was disclosed at an Overseas Investors Chamber of Commerce and Industry session focused on the taxonomy and ESG reporting.
  • The Securities and Exchange Commission of Pakistan has updated guidelines for listed companies to align reporting with the taxonomy, with mandatory phases scheduled for 2029–2031.
  • Pakistan’s NDC 3.0 targets include a 17% unconditional and 33% conditional cut in emissions, 30% electric vehicle adoption, and a shift to 60% renewable energy.
  • Introduced by the State Bank of Pakistan in 2024, the taxonomy classifies activities contributing to climate mitigation, water sustainability, ecosystem protection, pollution prevention, circularity, and land management.
  • Presenters outlined alignment tests—substantial contribution, do-no-significant-harm, and minimum social safeguards—and urged mapping to GRI, ISSB and TCFD to attract investable capital.