ISLAMABAD: Pakistan is planning to implement carbon pricing mechanism-policy tool to lower greenhouse gas emissions.

This has been stated in report of Asian Development Bank (ADB) titled, ‘Asian Economic Integration Report 2024, Decarbonising Global Value Chains.’ Report noted that establishing carbon pricing mechanism is one of many important policy tools to lower greenhouse gas emissions. In Asia, economies have started instituting their carbon pricing mechanisms, though much work is still to be done. As of April 2023, two carbon taxes (Japan and Singapore) and five economy-level emissions trading system (Indonesia, Kazakhstan, New Zealand, PRC and Republic of Korea) are in operation and several economies (Brunei Darussalam, India, Pakistan, Philippines, Thailand, and Viet Nam) are planning to implement them.

Bank stated that five trade agreements including at least one Asian economy entered into force in 2023. Indonesia-Republic of Korea Comprehensive Economic Partnership Agreement took effect two years after it was signed in December 2020. Indonesia also signed an agreement with Iran, its second bilateral agreement in Middle East after Indonesia-United Arab Emirates CEPA, which entered into force in July 2022. Uzbekistan enforced separate bilateral agreements with Pakistan and Turkiye, in move to expand its trade partnerships outside Central Asia.

Some Asian economies (such as Bangladesh, Nepal, Pakistan, Philippines, and Thailand) are among top 10 economies exposed to long-term climate risk, while Asia accounted for more than half of all multi-hazard global average annual losses for 2000-2022.

Published in The Daily National Courier, February, 29 2024

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