What happened
Pakistan will need $565.7 billion in investment to achieve its Nationally Determined Contributions (NDC) 3.0 climate commitments by 2035, a session on the Pakistan Green Taxonomy (PGT) and ESG Disclosure Guidelines heard, The Nation reported.
The session, hosted by the Overseas Investors Chamber of Commerce and Industry (OICCI) in Islamabad, was attended by senior business executives and industry stakeholders and focused on the role of sustainable finance and transparent ESG reporting in attracting the investment needed for climate resilience.
The session was held against the backdrop of the Securities and Exchange Commission of Pakistan (SECP) issuing revised ESG Disclosure Guidelines for listed companies, formally aligning them with the Pakistan Green Taxonomy. The report said the move is intended to strengthen sustainability reporting, enhance transparency and support the country’s climate transition.
Why it matters
According to the session, Pakistan’s NDC 3.0 targets include a 17 percent unconditional and 33 percent conditional reduction in greenhouse gas emissions, a 30 percent increase in electric vehicle adoption, and a shift to 60 percent renewable energy.
The report said meeting those goals will depend heavily on mobilising green-aligned investment. The Pakistan Green Taxonomy, launched by the State Bank of Pakistan in 2024, provides a classification system for activities that contribute to environmental objectives, including climate change mitigation, sustainable water use, ecosystem protection, pollution prevention, the circular economy and land management. The ESG Disclosure Guidelines are set to transition to mandatory reporting between 2029 and 2031.
Farrukh Rehman, an expert on climate regulatory compliance and a former president of the Institute of Chartered Accountants of Pakistan, said integrating the green taxonomy into ESG reporting was “a roadmap for businesses to align operations with national climate objectives”, adding that transparent reporting would attract sustainable investment. OICCI Secretary General M. Abdul Aleem said the corporate sector recognised sustainability and accountability as key to business strategy, and that adopting ESG disclosures and taxonomy-aligned practices would help companies secure investment and build resilience.
The session also covered technical criteria for taxonomy alignment, including the substantial contribution test, do-no-significant-harm principles and minimum social safeguards, as well as international reporting standards such as GRI, ISSB and TCFD.
What is still uncertain
The report did not set out a year-by-year financing plan, identify how much of the $565.7 billion is expected from public versus private sources, or explain how compliance with the mandatory ESG reporting timeline will be enforced.
Sources & reporting notes
This article summarises reporting published by The Nation on 15 January 2026. It is not eyewitness reporting. Figures and statements are as reported by the source.
- The Nation — Pakistan will need $565.7 billion in investment to achieve its NDC 3.0 climate commitments by 203515 January 2026 · Business report on the OICCI session, NDC 3.0 targets and the SECP's revised ESG guidelines.
