This business guide by Karandaaz Pakistan, developed in collaboration with the Ministry of Climate Change & Environmental Coordination (MoCC), explores how carbon credits can become a powerful tool for businesses to align with Pakistan’s climate goals while generating new revenue streams.

With Pakistan aiming to reduce greenhouse gas emissions by 50% by 2030 under its Nationally Determined Contributions (NDCs), the paper outlines the critical role of private sector participation in scaling low-carbon solutions. It presents an 11-step lifecycle—from emissions assessment and project validation to credit issuance and trading—providing practical guidance for industries and project developers in sectors such as energy, manufacturing, agriculture, and waste.

The paper also examines the policy shifts enabling market development, including the SECP’s adoption of sustainability disclosure standards and new Carbon Market Policy Guidelines. Real-world cost breakdowns and a case study from the textile sector add context, while the roadmap section offers recommendations to address Pakistan’s current gaps in verification, transparency, and institutional capacity.