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Carbon tax can aid climate goals, boost revenue: World Bank
Carbon tax can aid climate goals, boost revenue: World Bank

Business Recorder

time26-06-2025

  • Business
  • Business Recorder

Carbon tax can aid climate goals, boost revenue: World Bank

ISLAMABAD: As Pakistan navigates its transition towards higher middle-income status while facing escalating climate challenges, a well-designed carbon taxation framework presents a dual opportunity to meet emissions targets and generate vital revenue, says the World Bank. The bank in its latest report, 'Assessing Carbon Emissions in Pakistani Households: Implications for Carbon Tax Policy' noted that Pakistan has set ambitious emissions reduction targets through combined domestic and international efforts. While its Nationally Determined Contributions do not explicitly mention carbon pricing, the National Climate Change Policy (2012)—reaffirmed in 2017 and 2021 revisions—recognises carbon taxes' potential role, particularly in the energy sector. At the UN Climate Ambition Summit in December 2020, the Prime Minister outlined a decarbonisation vision where, by 2030, 60 per cent of energy would come from renewable sources, 30 per cent of vehicles would be electric, and no new coal plants would be built. These commitments, alongside the 'Ten Billion Tree Tsunami' programme, form Pakistan's pathway to meeting its climate goals. The National Economic Transformation Plan (2024-2029) further integrates environmental sustainability into development—targeting a 50 per cent cut in greenhouse gas emissions,10 per cent renewable energy in the power mix, and a 13 per cent reduction in income poverty while promoting food security and green economic growth. While necessary, a carbon pricing instrument is not sufficient on its own. For effectiveness, it must be carefully designed as an element within a comprehensive climate policy package. The implementation generates fiscal incentives, with prices playing a crucial role in aligning economic behaviour. The effectiveness hinges on providing clear, stable price signals that encourage technological upgrades. A carbon tax offers an opportunity to overhaul environmental taxation broadly, including the politically challenging but necessary phase-out of energy subsidies. Pakistan currently imports nearly one-third of its energy as fossil fuels, contributing significantly to chronic fiscal stress. A carbon tax would signal firms and households to adopt efficiency measures and shift away from fossil fuels, the report noted. Copyright Business Recorder, 2025

Tariffs, geopolitical tensions: IMF warns Pakistan of rising external risks
Tariffs, geopolitical tensions: IMF warns Pakistan of rising external risks

Business Recorder

time19-05-2025

  • Business
  • Business Recorder

Tariffs, geopolitical tensions: IMF warns Pakistan of rising external risks

ISLAMABAD: International Monetary Fund (IMF) has warned that external risks are increasing, notably from the economic and financial impact of the April 2 US tariff announcements and subsequent market reaction, broader geopolitical tensions and elevated global economic policy uncertainty, with potential spillovers to (already tight) global financial conditions and commodity prices. The Fund in its latest report also stated that domestic political economy pressures to unwind and delay reforms remain present and may intensify, which would quickly eviscerate Pakistan's hard-won economic stability. Uncertainties around the impact of recent tariff announcements on Pakistan's economic and financial conditions are significant, with risks skewed to the downside. Trade tensions to affect Pakistan more in region: IMF More broadly, geopolitically driven increases incommodity prices, tightening in global financial conditions, weakening of remittances, or higher trade barriers in other trading partners could adversely affect external stability. The other main immediate risk relates to policy slippages given pressures to ease policies and provide tax and other concessions and subsidies to connected interests. The report further noted that an intensification of political or social tensions could also weigh on policy and reform implementation. Finally, climate-related risks are substantial, driven by both Pakistan's high exposure to natural disasters and large adaptation and mitigation needs. Amid an increasingly uncertain external environment, geopolitical frictions could adversely impact external stability via higher commodity prices, a tightening in global financial conditions, or greater protectionism in key trading partners. Considering Pakistan's high exposure to natural disasters, weather-related events could further elevate fiscal and external pressures. In view of this, it is critical that policy and structural reforms are implemented consistently, and delays or slippages are avoided as they could jeopardize the nascent economic recovery and the path to debt and external sustainability, and could adversely impact the external financing outlook, including from bilateral partners, it added. IMF further stated that part of Pakistan's challenge is a lack of policy consistency and continuity. Policies, budgets, and programs related to climate risk have thus far been subject to changing political currents. As a result, although climate-change issues have featured in Pakistan's overall development policies since the 2012 National Development Strategy (NDS), specific actions or implementation steps have been lacking. The first National Climate Change Policy (NCCP 2012) provided guidelines for developing national adaptation and mitigation plans across sectors, but in practice, it had little impact on sectoral programs. Three years later, in its first Intended Nationally Determined Contribution (INDC 2015), Pakistan made a handful of very limited commitments to mitigation and adaptation but has not moved significantly beyond that point. One reason is that government ownership of climate change policy and responsibilities for action has been fragmented. For the past several years, this responsibility has shifted between different institutions and levels, with blurred lines of responsibility and weak forms of accountability. Additionally, challenges exist in transferring environmental, water, agriculture and climate-change policies and programs from the national level down to the provincial level, and across sectors. With the advent of devolution in Pakistan, the provinces became responsible for sectoral policies and implementation within their respective jurisdictions. As a result, although the Ministry of Climate Change has the overall mandate for climate change policy, each province has its own Environmental Protection Agency (EPA) responsible for environmental policy and programs within that province. This includes climate-change mitigation and adaptation measures. Two provinces have also set up climate-change centres under their EPAs. Copyright Business Recorder, 2025

Tariffs, geopolitical tensions: Fund warns of rising external risks
Tariffs, geopolitical tensions: Fund warns of rising external risks

Business Recorder

time19-05-2025

  • Business
  • Business Recorder

Tariffs, geopolitical tensions: Fund warns of rising external risks

ISLAMABAD: International Monetary Fund (IMF) has warned that external risks are increasing, notably from the economic and financial impact of the April 2 US tariff announcements and subsequent market reaction, broader geopolitical tensions and elevated global economic policy uncertainty, with potential spillovers to (already tight) global financial conditions and commodity prices. The Fund in its latest report also stated that domestic political economy pressures to unwind and delay reforms remain present and may intensify, which would quickly eviscerate Pakistan's hard-won economic stability. Uncertainties around the impact of recent tariff announcements on Pakistan's economic and financial conditions are significant, with risks skewed to the downside. Trade tensions to affect Pakistan more in region: IMF More broadly, geopolitically driven increases incommodity prices, tightening in global financial conditions, weakening of remittances, or higher trade barriers in other trading partners could adversely affect external stability. The other main immediate risk relates to policy slippages given pressures to ease policies and provide tax and other concessions and subsidies to connected interests. The report further noted that an intensification of political or social tensions could also weigh on policy and reform implementation. Finally, climate-related risks are substantial, driven by both Pakistan's high exposure to natural disasters and large adaptation and mitigation needs. Amid an increasingly uncertain external environment, geopolitical frictions could adversely impact external stability via higher commodity prices, a tightening in global financial conditions, or greater protectionism in key trading partners. Considering Pakistan's high exposure to natural disasters, weather-related events could further elevate fiscal and external pressures. In view of this, it is critical that policy and structural reforms are implemented consistently, and delays or slippages are avoided as they could jeopardize the nascent economic recovery and the path to debt and external sustainability, and could adversely impact the external financing outlook, including from bilateral partners, it added. IMF further stated that part of Pakistan's challenge is a lack of policy consistency and continuity. Policies, budgets, and programs related to climate risk have thus far been subject to changing political currents. As a result, although climate-change issues have featured in Pakistan's overall development policies since the 2012 National Development Strategy (NDS), specific actions or implementation steps have been lacking. The first National Climate Change Policy (NCCP 2012) provided guidelines for developing national adaptation and mitigation plans across sectors, but in practice, it had little impact on sectoral programs. Three years later, in its first Intended Nationally Determined Contribution (INDC 2015), Pakistan made a handful of very limited commitments to mitigation and adaptation but has not moved significantly beyond that point. One reason is that government ownership of climate change policy and responsibilities for action has been fragmented. For the past several years, this responsibility has shifted between different institutions and levels, with blurred lines of responsibility and weak forms of accountability. Additionally, challenges exist in transferring environmental, water, agriculture and climate-change policies and programs from the national level down to the provincial level, and across sectors. With the advent of devolution in Pakistan, the provinces became responsible for sectoral policies and implementation within their respective jurisdictions. As a result, although the Ministry of Climate Change has the overall mandate for climate change policy, each province has its own Environmental Protection Agency (EPA) responsible for environmental policy and programs within that province. This includes climate-change mitigation and adaptation measures. Two provinces have also set up climate-change centres under their EPAs. Copyright Business Recorder, 2025

Anwar: Malaysia committed to net zero by 2050, carbon tax starting next year
Anwar: Malaysia committed to net zero by 2050, carbon tax starting next year

Malay Mail

time24-04-2025

  • Politics
  • Malay Mail

Anwar: Malaysia committed to net zero by 2050, carbon tax starting next year

KUALA LUMPUR, April 24 — Prime Minister Datuk Seri Anwar Ibrahim has reiterated Malaysia's commitment to reduce carbon intensity by 45 per cent by 2030 and achieve net zero carbon by 2050. He said the goal is supported by strong policies including the National Climate Change Policy (DPIN) 2.0, the National Energy Transition Roadmap (NETR) as well as the implementation of a carbon tax starting next year. 'Last night I joined 16 other Heads of State or Government in a virtual dialogue chaired by UN Secretary-General Antonio Guterres and Brazilian President Luiz Inacio Lula da Silva in preparation for #COP30 (30th Conference of the Parties). 'We exchanged views and best practices in addressing climate change while discussing related issues including preparations for the upcoming Nationally Determined Contribution (NDC) target setting,' he said in a Facebook post. Meanwhile, Anwar said Malaysia also stressed the importance of global cooperation and fair climate financing, especially for developing countries. 'As the Asean 2025 Chair, Malaysia is committed to driving stronger regional climate action, championing a fair and inclusive energy transition and further positioning Asean as a hub for green innovation and sustainable investment,' he said. — Bernama

Malaysia committed to achieve net zero carbon by 2050, as strong regional climate action
Malaysia committed to achieve net zero carbon by 2050, as strong regional climate action

The Sun

time24-04-2025

  • Politics
  • The Sun

Malaysia committed to achieve net zero carbon by 2050, as strong regional climate action

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has reiterated Malaysia's commitment to reduce carbon intensity by 45 per cent by 2030 and achieve net zero carbon by 2050. He said the goal is supported by strong policies including the National Climate Change Policy (DPIN) 2.0, the National Energy Transition Roadmap (NETR) as well as the implementation of a carbon tax starting next year. 'Last night I joined 16 other Heads of State/Government in a virtual dialogue chaired by UN Secretary-General Antonio Guterres and Brazilian President Luiz Inacio Lula da Silva in preparation for #COP30 (30th Conference of the Parties). 'We exchanged views and best practices in addressing climate change while discussing related issues including preparations for the upcoming Nationally Determined Contribution (NDC) target setting,' he said in a Facebook post. Meanwhile, Anwar said Malaysia also stressed the importance of global cooperation and fair climate financing, especially for developing countries. 'As the ASEAN 2025 Chair, Malaysia is committed to driving stronger regional climate action, championing a fair and inclusive energy transition and further positioning ASEAN as a hub for green innovation and sustainable investment,' he said.

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