Experts Call For Blended Finance, Robust MRV Systems & Stronger SME Support To Navigate CBAM Challenges
ISLAMABAD, (APP – UrduPoint / Pakistan Point News – 1st Sep, 2026) International experts and policy analysts on Tuesday called for blended finance, robust measuring, reporting and verification (MRV) systems, and stronger small and medium enterprise (SME) support to navigate challenges emerging post EU’s carbon border adjustment mechanism (CBAM) rollout, which imposes a carbon tax on exporters producing carbon-intensive exports.
The Sustainable Development Policy Institute (SDPI) hosted a consultative discussion titled "Antalya Road to CBAM: Financing Technology and Green Industrialization," bringing together policymakers, industry representatives, and international experts to deliberate on financing pathways, technological readiness, and policy reforms needed to assist Pakistan’s export industries in coping with the European Union’s Carbon Border Adjustment Mechanism (CBAM).
Dr Abid Qaiyum Suleri, Executive Director of SDPI, stated that the discussion should shift focus from differing opinions to identifying practical implementation gaps and exploring how existing frameworks can be enhanced. He noted the consistent concerns raised by developing countries regarding the slow delivery of climate finance commitments and technology transfer pledges made at successive Conferences of Parties (COPs), emphasizing the need for substantiating these concerns with evidence and data on successful implementations over nearly three decades of climate negotiations.
Dr Suleri argued that Pakistan needs to pursue a green industrialization agenda involving collaboration between the private sector and policymakers, suggesting that public finance backed by sovereign guarantees could enable industries to access climate finance on more favorable terms—a potential catalyst for Pakistan’s transition to greener industries.
He also advocated for technology transfer programs focusing on energy transition, efficient energy utilization, and artificial intelligence applications to improve efficiency in Pakistan’s textile sector. He highlighted Pakistan’s advantageous relationships with both the United States and China, the world’s leading AI technology providers and significant destinations for Pakistani textile exports, as potential leverage for this initiative.
Regarding participation at COP, Dr Suleri noted the limited availability of Blue Zone passes and encouraged accredited organizations to allocate a larger share to private sector representatives. He mentioned that SDPI has shared its passes with the private sector to provide industry members a platform for international engagement while cautioning against a lack of coordination, emphasizing the need for a unified approach to strengthen collective negotiating efforts.
Saleha Qureshi, Lead of Pakistan Industrial Decarbonization Program at SDPI, opened the session by stating that CBAM can no longer be viewed merely as an EU policy but as a global trend setting new standards for carbon pricing and industrial competitiveness.
