The framework aims to direct finance into sustainable growth and climate resilience, ensuring transparency in green projects
Islamabad: Pakistan has formally approved the Pakistan Green Taxonomy, a landmark framework designed to channel investment toward climate resilience and sustainable growth. Backed by the World Bank, the initiative introduces a clear system to classify and prioritize green projects, enhancing transparency in sustainable finance.
Developed by the Ministry of Climate Change and Environmental Coordination in partnership with the Ministry of Finance, the State Bank of Pakistan, and the World Bank, the taxonomy was reviewed by key ministries before receiving final approval from the Economic Coordination Committee (ECC).
Officials highlighted that the taxonomy will help policymakers, banks, and investors align financial decisions with national climate goals while preventing “greenwashing” and ensuring credibility in green financing.
The approval comes as Pakistan faces growing climate risks, including heavy rains, flash floods, and declining crop yields. Authorities believe the taxonomy will steer investment into renewable energy, resilient infrastructure, and environmental protection projects—helping bridge the country’s sustainable development financing gap.
By unlocking private capital, particularly from commercial banks, Pakistan aims to position itself as a competitive destination for global green investment. Officials noted this marks a significant step toward embedding climate considerations into economic planning and achieving long-term sustainable growth.