Pakistan Joins Global Carbon Trade with First Article 6 Project Greenlights

Pakistan has officially entered the international carbon trading arena, granting its first approvals under the Paris Agreement’s Article 6 framework to two pioneering projects. This move positions the country as a rising player in the global push for market-based green solutions.

Panoramic view of the Indus River surrounded by green fields in Punjab. AI generated picture.

In a milestone announcement, Pakistan’s Ministry of Climate Change and Environmental Coordination (MoCC&EC) confirmed the issuance of two critical documents: a Host Country Approval (HCA) for a clean water project developed by South Korea’s ATR Inc., and a Letter of Intent (LoI) for a landfill transformation project led by the Ravi Urban Development Authority (RUDA).

‘These developments mark a historic milestone in Pakistan's efforts to operationalise a transparent, credible, and high-integrity carbon market under the Paris Agreement's Article 6 framework,’ the ministry stated.

ATR’s clean water project is part of Punjab’s WASH (Water, Sanitation, and Hygiene) Sector Plan and involves installing 250 water filtration units between 2026 and 2035. The project will provide free, clean drinking water to over 4 million residents and generate an estimated 1.5 million tonnes of CO₂ reductions. These credits will qualify as Article 6.4 Emission Reductions (A6.4ERs), which can be traded internationally under the UN’s Crediting Mechanism.

At the same time, RUDA’s $18 million rehabilitation initiative will transform the 43-acre Mehmood Booti landfill into an urban green space featuring a solar park and forest area. This effort is expected to produce nearly 930,000 tonnes of CO₂ credits by 2040. The credits will be eligible as Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2, allowing for direct bilateral or multilateral trades between countries.

‘[The] MoCC&EC welcomes global developers and partners to invest in Pakistan's carbon market, confident that early movers will help define the high-integrity standards for future climate finance in the region,’ the ministry added.

With more projects under review, Pakistan’s environmental ambitions appear to be gaining serious traction—paving the way for scalable, transparent environmental finance solutions on a global stage.