A green taxonomy is a classification system for identifying activities or investments that will move a country toward meeting specific targets related to priority environmental objectives. Pakistan’s commitment to sustainable development and climate resilience necessitated the development of a green taxonomy that provides clear and science-based definitions of economic activities to increase capital flows into sectors that are critical for achieving its climate and environmental goals.
The Pakistan Green Taxonomy (PGT) is intended to provide clarity to financial market participants on how to identify green economic activities, increase the transparency of green investments and financial products, mitigate climate-related financial risks, and help the financial sector direct capital flows to projects or activities that will meet the country’s environmental and climate objectives.
The Taxonomy was developed based on a benchmarking exercise involving several globally recognised taxonomies to ensure interoperability while taking into account the national context. Local experts evaluated metrics, thresholds, local availability, technology readiness, and affordability to ensure that the Taxonomy accurately reflects the local context. Where necessary, international criteria were adapted to the local context without compromising scientific rigor and credibility.
The PGT covers six (6) sectors that have substantial contribution to the climate change mitigation objective, specifically the reduction of greenhouse gas (GHG) emissions, and eight (8) sectors that directly improve adaptation to climate change. Furthermore, the tourism and agriculture (including livestock), forestry, fishing and aquaculture sectors incorporate activities and measures that contribute simultaneously to multiple environmental objectives.
| 🌍 Climate Mitigation | 🌱 Climate Adaptation |
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| Page | Content |
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| Navigation Guide | This page outlines the steps for using PGT Navigation Tool. The tool provides a consolidated query method for identifying relevant sectors and economic activities under Pakistan's Green Taxonomy. |
| Economic Activities | List of economic activities for (i) climate change mitigation objective and their ISIC/PSIC industry codes, and (ii) objective of climate change adaptation. List of sustainable practices for (i) the agriculture (including livestock), forestry, fishing and aquaculture sectors and (ii) tourism sector. |
| Generic Do No Significant Harm (Generic DHSH) | This page provides a list of recommendations to ensure that the activities included in the taxonomy do not cause significant environmental harm. These recommendations apply across all sectors and economic activities in Pakistan Green Taxonomy and are organised according to the environmental objective they address. |
| Minimum Social Safeguards (MSS) | This page outlines the social criteria that projects must meet to be considered aligned with Pakistan Green Taxonomy. It presents a table providing guidance on the Minimum Social Safeguards (MSS), including: - Key social pillars to be assessed when evaluating a project or activity. - National and international frameworks that support compliance with these social pillars. - Key performance indicators applicable to social risk assessments. |