KARACHI: Pakistan will require an estimated $565.7 billion in investment to meet its Nationally Determined Contributions (NDC) 3.0 climate commitments by 2035, according to stakeholders at a recent business forum.
The NDC targets include a 17 per cent unconditional and 33 per cent conditional reduction in greenhouse gas emissions, a 30 per cent increase in electric vehicle adoption, and a transition to 60 per cent renewable energy in the national energy mix. Achieving these ambitious goals will depend largely on mobilising green-aligned investments, making policy frameworks such as the Pakistan Green Taxonomy (PGT) and strong Environmental, Social and Governance (ESG) disclosure practices critical for directing capital toward sustainable initiatives.
These insights were shared during a session on Pakistan Green Taxonomy and ESG Disclosure Guidelines, hosted by the Overseas Investors Chamber of Commerce and Industry (OICCI) on Wednesday. The event brought together senior business leaders and industry stakeholders to discuss Pakistan’s climate financing and sustainability roadmap.
According to an OICCI press release, the session was held following the Securities and Exchange Commission of Pakistan’s (SECP) issuance of revised ESG Disclosure Guidelines for listed companies, formally aligned with the Pakistan Green Taxonomy. The updated framework aims to strengthen sustainability reporting, enhance transparency, and support Pakistan’s climate transition and environmental commitments.
Launched by the State Bank of Pakistan (SBP) in 2024, the Pakistan Green Taxonomy provides a structured classification system to identify economic activities that contribute to environmental objectives, including climate change mitigation, sustainable water management, ecosystem protection, pollution prevention, circular economy practices, and sustainable land use. Complementing this, the ESG Disclosure Guidelines—set to become mandatory between 2029 and 2031—introduce standardised metrics for both financial and non-financial sustainability reporting.
Speaking on green financing, Farrukh Rehman, an expert on climate regulatory compliance, noted that integrating the Pakistan Green Taxonomy into ESG reporting offers a clear roadmap for businesses to align their operations with national climate goals. He emphasised that transparent and structured disclosures would not only attract sustainable investment but also enable companies to play a meaningful role in advancing Pakistan’s environmental and social objectives.
