Karachi: Pakistan will need $565.7 billion in investment to meet its Nationally Determined Contributions (NDC) 3.0 climate commitments by 2035, according to a session on Pakistan Green Taxonomy (PGT) and ESG Disclosure Guidelines hosted by the Overseas Investors Chamber of Commerce and Industry (OICCI). The session, attended by business executives and industry stakeholders, emphasized the role of sustainable finance and transparent ESG reporting in attracting the investments necessary for Pakistan's climate resilience.
According to the Overseas Investors Chamber of Commerce and Industry, the session was prompted by the Securities and Exchange Commission of Pakistan's issuance of revised ESG Disclosure Guidelines for listed companies, aligning them with the Pakistan Green Taxonomy. This initiative aims to enhance sustainability reporting and transparency to support Pakistan's climate transition and commitments.
Pakistan's NDC 3.0 targets include a 17 percent reduction in greenhouse gas emissions unconditionally and a 33 percent reduction conditionally, a 30 percent increase in electric vehicle adoption, and a shift to 60 percent renewable energy. Achieving these goals relies on mobilizing green investments, with frameworks like the Pakistan Green Taxonomy and robust ESG disclosure practices guiding capital toward sustainable projects.
Launched in 2024 by the State Bank of Pakistan, the Pakistan Green Taxonomy provides a classification system for identifying activities contributing to environmental objectives, such as climate change mitigation and sustainable water use. The ESG Disclosure Guidelines, transitioning to mandatory reporting between 2029 and 2031, establish metrics for financial and non-financial sustainability reporting.
Farrukh Rehman, an expert on climate regulatory compliance, led the session, emphasizing that integrating the Pakistan Green Taxonomy into ESG reporting offers a roadmap for businesses to align operations with national climate objectives. Transparent reporting will attract sustainable investment and enable companies to contribute to Pakistan's environmental and social goals.
M. Abdul Aleem, OICCI Secretary General, noted that the corporate sector recognizes the importance of accountability and sustainability. By adopting ESG disclosures and PGT-aligned practices, companies can secure investment, drive innovation, and enhance resilience against climate-related risks.
The session also addressed technical criteria for PGT alignment, including the substantial contribution test and do-no-significant-harm principles, to ensure ethical practices. Attendees were guided through reporting formats and international standards to ensure compliance and consistency.