The Sustainable Development Policy Institute (SDPI) and the Embassy of Denmark in Pakistan, together launched the second phase of the knowledge partnership initiative titled “Unlocking the Potential of Carbon Markets in Pakistan.” The launch of project was announced at reception of high-level delegates, diplomats, and policy makers of Pakistan, said a press release issued here on Tuesday. Speaking at the inception, Ambassador of Denmark, Jakob Linulf said, “This partnership has not only bridged knowledge gaps but has also fostered collaboration between federal and provincial governments, setting a solid foundation for a sustainable carbon market framework in Pakistan.” Ambassador Linulf further highlighted that the commencement of the second phase was building on a strong foundation that has already enhanced Pakistan’s climate policy framework and fostered collaboration across public and private sectors. “Now, we are excited to support the industries and corporates, especially the small and medium enterprises in accessing carbon markets, creating new opportunities for green growth and resilience. Together, with Danish and SDPI’s expertise and the spirit of partnership, we aim to empower businesses to contribute to Pakistan’s climate goals while capitalizing on economic opportunities that carbon markets present,” the Danish Ambassador said. The initiative highlights both organizations’ commitment to promoting sustainable economic growth through a strengthened carbon market framework, particularly Denmark’s efforts in promoting climate action and low-carbon development in Pakistan. The project’s initial phase in 2023 successfully laid the groundwork for developing a carbon market in Pakistan. Key achievements included building the capacity of over 950 professionals on carbon trading mechanisms, fostering collaboration between public and private sectors, and contributing to Pakistan’s national carbon market policy, which will be unveiled at COP29. The SDPI has also supported revisions to national carbon trading guidelines and facilitated alignment between federal and provincial governments on carbon policy issues. The second phase of the project aims to expand the impact of the initial work by creating accessible entry points for small and medium enterprises (SMEs) in Pakistan to participate in carbon markets. By collaborating closely with chambers of commerce and industry bodies across Pakistan, this phase will focus on building a pipeline of market-ready projects, providing hands-on support to enable SMEs to develop viable proposals for carbon trading. This phase will also enhance the alignment between public sector strategies and market opportunities. Drawing from Denmark’s climate policy expertise, the project will facilitate national dialogues and workshops with government ministries, private sector leaders, and international experts to encourage shared insights and foster an inclusive understanding of carbon trading benefits. Looking toward 2025, this phase will train over 100 private sector companies in more depth, develop a showcase-ready pipeline of carbon market projects, and hold numerous national dialogues and consultative sessions on carbon trading. This collaboration marks an important step toward positioning Pakistan as a proactive player in global climate initiatives. Through partnerships and policy development, the project reinforces the importance of sustainable growth, equipping local businesses and policymakers alike to capitalize on the opportunities that carbon markets present.