KARACHI: The State Bank of Pakistan (SBP) is set to release the initial draft of its highly anticipated National Green Taxonomy Policy by the end of this month, marking a significant step in Pakistan’s efforts to address climate change. The unveiling of the policy draft is slated for March 25, 2025, and will be a crucial component in guiding the country’s economic and environmental landscape, particularly in terms of carbon emissions.
This development was revealed during a meeting of the Senate Standing Committee on Climate Change & Environmental Coordination held at the SBP headquarters in Karachi on Wednesday. The meeting, which brought together key figures from the government and environmental sectors, was attended by Senator Sherry Rehman, Chairperson of the Senate Standing Committee on Climate Change, along with other members such as Senators Bushra Anjum Butt, Zarqa Suharwardy, Taj Haider, Qurat-ul-Ain Mari, and SBP officials including Governor Jameel Ahmed and Deputy Governor Saleem Ullah. Additionally, representatives from the Ministry of Finance, Ministry of Climate Change, and Pakistan Business Council also participated in the discussions.
During the session, Deputy Governor Saleem Ullah shared detailed insights into the Green Taxonomy Policy’s formulation. He revealed that the policy, currently in the consultation phase, aims to identify the major sectors contributing to Pakistan’s economy while also assessing their carbon footprint. The policy categorizes sectors into three categories—Green, Amber, and Red—based on their environmental impact, and will focus on mitigating and adapting to climate change through collaboration with stakeholders from various sectors. The sectors targeted for this policy include agriculture, forestry, fisheries, manufacturing, transport, energy, construction, water, waste, information and telecommunications, and tourism.
One of the key objectives of the policy is to identify and address the carbon emissions from these sectors, with a particular focus on ensuring sustainable practices are adopted. The policy aims to create awareness and offer guidance on how these sectors can transition toward greener and more environmentally responsible practices.
Senator Sherry Rehman, who has been a vocal advocate for climate change action in Pakistan, lauded SBP’s proactive approach to addressing climate challenges. She noted that Pakistan is the second most vulnerable country in the world to climate change, emphasizing the urgency of implementing effective strategies to combat its adverse effects. She stressed that the Green Taxonomy draft should be routed through the Council of Common Interests (CCI) to ensure the involvement of provincial governments in the policy’s implementation.
Rehman also called on the Ministry of Climate Change to expedite its efforts in addressing climate change and raising public awareness. “Pakistan is grappling with water scarcity, and farmers are facing severe challenges in accessing water for their crops. In light of the US withdrawal from the Paris Agreement, we must act swiftly,” she stated. She also emphasized the need for standardized net metering rates and greater promotion of solar energy at the provincial level to combat energy challenges.
In a media interaction, Senator Rehman reiterated the importance of the Green Taxonomy Policy for Pakistan’s future. She highlighted that it would impact over 160 key sectors, including agriculture and export industries. She also pointed out that underprivileged communities are often the most affected by climate change, making it critical to ensure their protection through sustainable policies.
Governor Jameel Ahmed of SBP reiterated the central role of the State Bank in facilitating green financing in Pakistan. He emphasized the importance of collaborative efforts across all sectors to effectively combat the challenges posed by climate change.
Senators Taj Haider, Zarqa Suharwardy, and Qurat-ul-Ain Mari also recommended that the policy draft be reviewed through relevant legislation by the Standing Committees on Climate Change and Finance to ensure comprehensive implementation. They further highlighted the need for capacity building within the Ministry of Climate Change to strengthen the country’s ability to manage environmental challenges.
As Pakistan moves closer to the final release of the Green Taxonomy Policy, all eyes will be on how the government integrates sustainability into its economic growth strategies and ensures that both private and public