Pakistan is gearing up to become a major hub for climate-friendly investment with the launch of the Pakistan Green Taxonomy, a World Bank–backed framework designed to direct capital into sustainable and climate-resilient growth.
The Ministry of Climate Change and Environmental Coordination, along with the Ministry of Finance and the State Bank of Pakistan, developed the taxonomy after extensive consultations with experts, stakeholders, and public institutions. The new classification system will help investors, banks, and policymakers identify green economic activities, enhance transparency of climate-related investments, and mitigate financial risks tied to climate change.
Officials say the taxonomy is expected to attract private sector financing—particularly from commercial banks—for projects in renewable energy, climate adaptation, and sustainable infrastructure. The move comes as Pakistan battles intense monsoon rains and flooding, which have already disrupted agricultural output, including sugarcane and sugar production.
The Economic Coordination Committee (ECC) has approved the taxonomy, clearing the way for its adoption across ministries, provincial governments, and regulatory bodies. Authorities believe this step will not only boost investor confidence but also align Pakistan’s economy with global climate goals while tapping into scarce international climate finance.