On 2 April 2026, Norway and Pakistan formalised their first bilateral carbon market agreement under Article 6.2 of the Paris Agreement, facilitated by the Global Green Growth Institute's (GGGI) Carbon Transaction Facility. The Memorandum of Understanding covers the exchange of Internationally Transferred Mitigation Outcomes (ITMOs) generated from projects in Pakistan's clean energy, agriculture, transport, and waste management sectors.
Norway has earmarked NOK 15 billion (approximately $1.56 billion) to purchase up to 15 million carbon credits by 2030 as part of its Global Emission Reduction Initiative, a $1.5 billion programme launched in 2024. Norway aims to achieve climate neutrality by 2030 and plans to purchase international carbon credits to exceed — not merely meet — its climate targets. Pakistan joins a growing list of Article 6.2 partners for Norway, alongside Benin, Indonesia, Zambia, Jordan, and Senegal.
Pakistan had already enacted foundational domestic policy, with the federal cabinet approving the country's first national carbon trading policy guidelines in January 2025. The Norway MoU now catalyses the creation of reporting systems, registry infrastructure, and bilateral rules needed to operationalise the market. Pakistan's clean energy transition — particularly solar expansion and cookstove electrification — represents a significant ITMO generation potential.
The quality of ITMOs generated under this agreement will depend heavily on the digital monitoring, reporting, and verification (dMRV) frameworks Pakistan implements. Norway and its Article 6.2 partners have historically required robust data trails and independent verification. For project developers, this means early investment in sensor-based or satellite-backed measurement systems will be a competitive differentiator when bidding into Norway's ITMO procurement pipeline.
TrustVal Commentary: Pakistan's entry into Article 6.2 markets expands the ITMO supply pipeline and creates new project development opportunities. For corporate buyers and project developers, the South Asian market — combining large renewable energy deployment with strong forestry and agriculture sectors — represents material credit volume at improving quality standards. TrustVal monitors Article 6.2 bilateral developments closely as part of our project origination advisory.
Primary source: Carbon Pulse — Pakistan signs first Article 6 deal with Norway | See also: GGGI press release
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