SBP likely to unveil initial ‘green taxonomy policy’ draft by month-end

KARACHI: The State Bank of Pakistan (SBP) is set to unveil the initial draft of the National Green Taxonomy Policy by the end of this month.

This was disclosed in the meeting of Senate Standing Committee on Climate Change & Environmental Coordination held on Wednesday at SBP head office. During the meeting the committee also received a briefing on National Green Taxonomy policy.

The meeting was attended by Senator Sherry Rehman Chairperson of the Senate Standing Committee on Climate Change & Environmental Coordination, members Senator Bushra Anjum Butt, Senator Zarqa Suharwardy, Senator Taj Haider, Senator Qurat-ul-Ain Mari, Governor State Bank Jameel Ahmed, Deputy Governor Saleem Ullah, Joint Secretary Ministry of Finance Mohammad Nadeem Memon, Secretary Ministry of Climate Change Ayesha Humera Ch, representatives of OCCI, Pakistan Business Council and media persons.

During the meeting, Deputy Governor of the State Bank, Saleem Ullah, informed the committee that the draft of the Green Taxonomy Policy is currently in the consultation phase and is expected to be finalized for release by March 25, 2025.

He said the policy is being formulated with the consultation of all stakeholders including representatives of Provincial and Federal Governments. ’’The policy aims to identify the sectors which contribute to the economy and their contribution in carbon emission,“ he added.

These sectors include Agriculture Forestry & Fisheries, Manufacturing, Transport, Energy, Construction, Water and Waste, Information & Telecommunication, Guide for tourism sector. After identification, depending on the carbon foot prints, the policy categorizes the sectors as Green, Amber and Red. Once identified, the policy focuses on mitigation and adaptation process with consultation and awareness with the stakeholders in the sectors, Saleem Ullah said.

Senator Sherry Rehman lauded SBP’s approach in addressing the pressing issue and said that Pakistan is 2nd most vulnerable country from Climate Change. She further stressed that the draft should be routed through Council of Common Interests as role of provinces in implementation is essential.

She also told the Ministry of Climate Change to pace up in leading efforts against climate change and creating awareness in public. “Pakistan is dealing with water scarcity, farmers are struggling for water in their crops and after US exist from Paris Agreement we must act swiftly to cope up Climate Change as no one is coming we are on our own,” she added. Moreover, she suggested that Ministry of Climate Change and EPA’s should take lead in action against carbon emitters.

Talking to media Senator Sherry Rehman, said that the State Bank of Pakistan’s Green Taxonomy Policy is essential for the country. The policy will be implemented across 160 major sectors, including the export and agriculture sectors. She emphasized that climate change disproportionately affects underprivileged communities and highlighted the need for a standardized net metering rate. Additionally, she stressed the importance of promoting solar power at the provincial level.

She said implementation of the policy requires consultation with provinces and all stakeholders through the Council of Common Interests (CCI).

Senator Sherry Rehman emphasized water scarcity is a critical issue and urged a mind-set shift to reduce water wastage. Additionally, she stressed the need to standardize net metering policy rates and highlighted that alternative energy sources are the key to overcoming the energy crisis.

On the occasion, Governor of the State Bank of Pakistan, Jameel Ahmed said that the State Bank plays a key role in supporting green financing. He added that they actively exchange information with stakeholders in this regard. The governor emphasized that collective efforts are essential to tackle climate change.

Senator Taj Haider, Senator Zarqa Suharwardy, Senator Qurat-Ul-Ain Mari also recommended that the draft policy should also be routed through legislation via standing committees on Climate Change and Finance, and that capacity building of MOCC needs to be done.

Copyright Business Recorder, 2025