Key points
- Green Taxonomy initiative was proposed by Ministry of Climate Change
- It will allow companies to share a common definition of economic activities considered “sustainable”
- Govt guarantee of Rs1b for the issuance of Pakistan Skill Impact Bond also approved
ISLAMABAD: In a major step towards environmental reform, the Economic Coordination Committee (ECC) approved Pakistan’s Green Taxonomy to facilitate access to financing for green projects in the country.
It was proposed by the Ministry of Climate Change and Environmental Coordination.
According to state broadcaster Radio Pakistan, the ECC, which met in Islamabad on Friday with Finance Minister Muhammad Aurangzeb in the chair, also approved a government guarantee of one billion rupees for the issuance of the Pakistan Skill Impact Bond to support skills development through outcomes-based financing.
Access to financing
“The chair appreciated the initiative, noting that it was long overdue and would play a vital role in facilitating access to financing for green projects in the country,” a statement issued by the Finance Division read.
During a meeting of the Senate Standing Committee on Climate Change and Environmental Coordination in March, State Bank Governor Jameel Ahmad said the taxonomy will allow financial and non-financial companies to share a common definition of economic activities that can be considered environmentally sustainable.
The statement issued today noted that the ECC meeting was held under the chairmanship of Finance Minister Muhammad Aurangzeb to deliberate on a range of important agenda items concerning industrial growth, environmental policy, skill development, housing finance, and telecommunications.
Industrial competitiveness
The meeting was attended by Federal Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister for Commerce Jam Kamal Khan, along with senior officials from relevant ministries, divisions, departments, and authorities.
It added that the ECC reviewed and endorsed a report presented by the Ministry of Commerce on industrial competitiveness and export-led growth of the steel sector, in alignment with the National Tariff Policy 2025–30, aimed at reducing production costs and enhancing export competitiveness.
