Final Year Project

Project Title

Carbon Credits and Climate Finance in Pakistan: Institutional Challenges and Stakeholder Networks

Description

Pakistan is among the world’s most climate-vulnerable countries and faces a significant gap between climate risks and climate financing. This study examines the potential and barriers to carbon market development in Pakistan using Ecological Modernization Theory and Environmental Governance Theory. Using an embedded mixed-methods design, it draws on sixteen semi-structured interviews with government officials, NGOs, international organizations, consultants, and industry stakeholders, alongside analysis of Carbon Market Guidelines and social network mapping. Findings highlight institutional fragmentation, technical capacity gaps, financial risks, and benefit-sharing concerns. Governance remains centralized, with strong reliance on international actors and limited inclusion of domestic stakeholders. Despite these constraints, the study identifies significant potential for carbon markets to mobilize climate finance if coordination and institutional capacity are improved.