Carbon markets being explored through innovative financial mechanisms: Gilani

Acting President Syed Yousuf Raza Gilani on Friday said climate finance and carbon markets were being explored through innovative financial mechanisms to support green infrastructure and taxonomy.

He said this while addressing the concluding session of Breathe Pakistan International Climate Change Conference in Islamabad.

Senate Chairman Yousuf Raza Gilani assumed the charge as acting president after President Asif Ali Zardrai left the country for China a five-day visit.

Green infrastructure is a network of multi-functional green space and other green features, urban and rural, which can deliver quality of life and environmental benefits for communities, according to tcpa.org.uk.

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Meanwhile, according to the Economic and Social Commission for Asia and the Pacific (ESCAP), a taxonomy in green and sustainable finance is a classification system that helps identify and classify investments as green based on their alignment with specific environmental objectives and targets.

“Pakistan remains among the top 10 most vulnerable countries to climate change and this disproportionate impact calls for urgent global responsibility and equity in climate finance and technology transfer,” the acting president said.

“Climate change is not just an environmental concern but a fundamental issue of economic security, social justice, and national sovereignty.”

He observed that Pakistan stood at the frontline of the climate crisis.

“We have endured devastating floods, prolonged droughts, glacial melting, and rising temperatures that threaten not just livelihoods but entire ecosystems”, Gilani remarked.

“The historic floods of 2022, which displaced millions and caused billions in economic losses, served as a stark reminder that climate change is no longer a distant threat—it is a lived reality for our people.”

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The acting president apprised about the measures taken by the government to promote renewable energy solutions, including solar, wind and hydropower to reduce dependency on fossil fuels.

“Climate finance and carbon markets are also being explored through innovative financial mechanisms to support green infrastructure, green taxonomy and climate-smart agriculture.”

He further said water resource management (WRM) was a pressing issue for addressing Pakistan’s water scarcity challenges through conservation policies and integrated water governance.

The acting president pledged to work closely with stakeholders including government agencies, private sector leaders, civil society, and international partners to drive policy coherence, transparency, and accountability in implementing climate initiatives.

“Pakistan cannot fight this battle alone,” Gilani emphasised.

“Principles of climate justice demand that developed nations uphold their commitments under the Paris Agreement — from fulfilling the $100 billion annual climate finance pledge to ensuring fair access to technology for developing countries.”

He called upon the global community to translate pledges into concrete actions, ensuring that vulnerable nations like Pakistan receive the support they need to build a climate-resilient future.

Gilani also called for empowering youth and creating conducive environment for a greener future.