Pakistan Planning to Implement Carbon Pricing Mechanism to Lower Greenhouse Gas Emissions

Pakistan intends to employ the carbon pricing mechanism, a tool for policy that reduces emissions of greenhouse gases.

According to the Asian Development Bank (ADB), this is mentioned in the publication “Asian Economic Integration Report 2024, Decarbonizing Global Value Chains.”

One of the many crucial policy measures to reduce greenhouse gas emissions, according to the paper, is the establishment of a carbon price mechanism. Although there is still more work to be done, economies in Asia have begun implementing their carbon pricing regimes.

April 2023 will see the implementation of five economy-level emissions trading systems (in Indonesia, Kazakhstan, New Zealand, the PRC, and the Republic of Korea) and two carbon taxes (in Singapore and Japan) as well as plans for implementation in several other economies (in Brunei Darussalam, India, Pakistan, the Philippines, Thailand, and Viet Nam).

More than half of all multi-hazard worldwide average yearly losses for the years 2000–2022, emanated from Asia, including Bangladesh, Nepal, Pakistan, the Philippines, and Thailand. Several Asian economies are in the top 10 in the world for long-term climate risk.

A minimum of one Asian economy was included in five trade agreements that the Bank said came into effect in 2023. The Comprehensive Economic Partnership Agreement (CEPA) between the Republic of Korea and Indonesia came into force in December 2020, two years after it was signed.

Along with the Indonesia-United Arab Emirates CEPA, which went into effect in July 2022, Indonesia also inked a bilateral deal with Iran. This is its second Mideast pact. To increase its trading partnerships outside of the country, Uzbekistan implemented separate bilateral agreements with Pakistan and Turkey.

Following the coronavirus disease (COVID-19) pandemic, the research observed that migrant fluxes from Asia and the Pacific had been rebounding. 2020 witnessed a precipitous decline in the number of migrants leaving Asia’s main migrant source economies due to the epidemic. Of the ninety-three million Asian migrants worldwide, six5.1 million are migrant laborers from the top ten sending economies in the region.

But data from sending economies after 2020 shows that, albeit to differing degrees, the trend in migration flows is again on the rise. In the case of Bangladesh (162.2%), India (101.5%), Pakistan (133.0%), and Sri Lanka (147.8%), outflows in 2022 have returned to their pre-pandemic levels from 2019. Despite a surge, outflows from the Philippines and Indonesia are still less than they were prior to the outbreak.

According to the research, Pakistan’s logistics and freight policy intends to improve supply chains both domestically and internationally by integrating logistics through interior waterways, rail, road, sea, and aviation in a seamless manner.

According to the research, there have been fluctuations in regional integration across different dimensions and subregions, but overall growth has been steady since the mid-2000s. The region exhibits integration in regional value chains, along with social and human integration, that is comparable to that of the European Union (EU), according to the Asia-Pacific Regional Cooperation and Integration Index (ARCII).

The implementation of digital transformation plans by several economies, which accelerated during the coronavirus disease (COVID-19) pandemic, is responsible for the majority of the technological and digital connection advancements observed in Asia and the Pacific. Nevertheless, since 2019, trade and investment integration has slowed slightly.

As of 2021, South Asia had deeper connection with other Asian subregions, even while intrasubregional integration developed faster than intersubregional integration in Southeast, East, and Central Asia. In order to protect against global shocks and lessen their detrimental impacts, regional integration has become essential.

While concerns of global fragmentation and rising protectionism exacerbate economic difficulties, greater collaboration and investment in connectivity—both “hard” (regulatory) and “soft” (intellectual) infrastructure—can boost economic resilience and yield reciprocal advantages. Asian economies will be better equipped to handle the risks and difficulties posed by climate change and supply chain vulnerability with greater conversation and discussion on regional policies.

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