Pakistan and Norway on Wednesday signed the country’s first landmark bilateral agreement under Article 6.2 of the Paris Agreement, opening the door to international carbon trading, climate finance and major investment in clean energy and climate-smart agriculture.

The memorandum of understanding, signed in Islamabad under the auspices of the Ministry of Climate Change and Environmental Coordination, marks Pakistan’s formal entry into the global carbon market and is being seen as a breakthrough in the country’s climate diplomacy.

Federal Minister for Climate Change and Environmental Coordination Musadik Malik termed the agreement a “historic milestone”, saying it would shift Pakistan from carbon market preparedness to practical implementation.

“This is Pakistan’s first bilateral agreement under Article 6.2 and an important step towards implementation,” Mr Malik said. “It creates a credible pathway for international cooperation and investment in Pakistan’s climate priorities.”

Under the agreement, Pakistan will be able to develop carbon-credit generating projects in sectors such as clean energy, agriculture, transport and waste management and potentially sell the resulting emission reductions to Norway.

Officials said the deal would help channel international finance into Pakistan at a time when the country is grappling with recurring floods, heatwaves and other climate shocks.

 Malik said the agreement would strengthen Pakistan’s position in international carbon markets and create new opportunities for the country’s emerging green economy. “Carbon markets cannot be treated as an end in themselves,” he said.

“They must help countries like Pakistan finance transition pathways, create jobs, attract technology and deliver real benefits to communities.”

The minister said Pakistan had already put in place the country’s first national policy guidelines for carbon trading, approved by the federal cabinet in January 2025, and was now moving to establish rules, reporting systems and bilateral arrangements needed to operationalise the market.

 He said Pakistan had “strong mitigation potential” in sectors such as renewable energy, agriculture, transport and waste management, and that the agreement would encourage project developers and investors to move forward.

Addressing at the signing ceremony, Norway’s Ambassador to Pakistan Per Albert Ilsaas said the accord marked the beginning of a new era in bilateral environmental cooperation.

“Pakistan is among the countries most affected by climate change, and we believe this partnership can deliver both measurable emission reductions and real development benefits,” he said.

The ambassador said Norway, which aims to become climate neutral by 2030, was seeking to purchase Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6, not to meet its formal climate targets but to go beyond them.

“Norway is not purchasing ITMOs to meet its nationally determined contribution targets. We are purchasing them to achieve climate neutrality beyond those commitments,” he said.

 Ilsaas said Norway’s Global Emission Reduction Initiative, launched in 2024 with a budget of $1.5 billion approved by the Norwegian parliament, would provide carbon finance to countries such as Pakistan.

“Through NOGER, we want to channel carbon finance into countries such as Pakistan and help bridge the gap in climate mitigation finance,” he said.

He added that Norway was looking beyond individual carbon-credit projects and was interested in large-scale programmes in renewable energy, industry and agriculture. “We are looking beyond individual projects,” the ambassador said. “We are interested in cooperation across entire sectors where climate policies can generate emission reductions at scale.”

The ambassador said Norway had already signed similar agreements with Benin, Indonesia, Zambia, Jordan and Senegal and was working to buy 15 million carbon credits by 2030.

He also invited Pakistan to present a broader pipeline of projects, specifically pointing to renewable energy ventures such as the Zhenfa 100-megawatt solar project and the Indus wind energy project as possible candidates for future cooperation.

Both sides also agreed that the new ambitious pact could significantly boost Pakistan’s access to climate finance and private-sector investment, while helping the country pursue low-carbon growth and meet its climate commitments under the Paris Agreement.

The United Kingdom, European Union (EU), Norway and the United Nations have voiced concern over a Pakistani military regime strike on a drug rehabilitation centre in Kabul, stressing the need to protect civilians and resolve the conflict through dialogue.

Pakistan’s military regime carried out the strike on a drug rehabilitation centre in the 9th police district of Kabul on Monday night.

At least 400 people were martyred and 250 others wounded.

Calling for restraint, EU urged all sides to take immediate steps to reduce harm to civilians and prevent further deterioration of the situation.

In a statement, it said attacks on civilians and medical facilities violated international humanitarian law, including the Geneva Conventions.

The Office of the United Nations High Commissioner for Human Rights (UNHCHR) also called for a prompt, independent and transparent investigation into the incident, with those responsible held accountable in line with international standards.

It said the findings must be made public and victims and their families should receive reparations.

It added that under international humanitarian law, civilians and civilian objects were fully protected.

The Ministry of Foreign Affairs of Norway expressed deep concern over the attack, saying medical facilities and patients must never be targeted.

The ministry urged all parties to exercise restraint, resolve disputes through dialogue and address security concerns peacefully.

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Jan Egeland, secretary-general of the Norwegian Refugee Council, also expressed concern, saying: “We have witnessed the devastating impact of this incident on civilians and a hospital, which reportedly caused heavy casualties.”

He said all parties must fulfil their obligations under international humanitarian law to ensure the protection of civilians.

Richard Lindsay, the UK’s special representative for Afghanistan, also expressed concern and said both sides should resolve their issues through dialogue.

Oslo, Norway – A wave of optimism swept through Oslo’s business and political corridors today as high-level discussions paved the way for a significant expansion of the India-Norway partnership. With the much-anticipated visit of Indian Prime Minister Narendra Modi to Norway later this year on the horizon, leaders from both nations expressed confidence in unlocking a new era of cooperation in everything from green technology to the blue economy.

The day’s activities began with a high-powered Roundtable meeting, where the CEO of India’s National Investment and Infrastructure Fund (NIIF) and the President of the Confederation of Indian Industry (CII) joined forces with prominent Norwegian CEOs and investors. The Indian delegation, led by a senior minister, engaged in “positive interactions” with over 35 leaders from Norway’s top business and investment community.

Discussions centered on India’s remarkable trajectory as the fastest-growing major economy in the world. Indian leaders noted that the official visit has already catalyzed encouraging dialogues, positioning India not just as a market, but as a prime investment destination for Norwegian capital and expertise.

A Warm Welcome from the Prime Minister

The momentum continued as the Indian minister called on Prime Minister Jonas Gahr Støre. During the meeting, Prime Minister Støre conveyed Norway’s eagerness to host Prime Minister Modi later this year, expressing firm confidence that the visit will act as a powerful catalyst to further expand the bilateral relationship.

Prime Minister Støre lauded India’s ongoing reform momentum, which he noted presents “strong potential for collaboration.” He specifically highlighted key sectors where the two countries can thrive together, including fisheries, health technology, maritime industries, and space exploration. He also took a moment to praise the valuable contributions of the Indian diaspora in Norway, acknowledging their role as a vibrant bridge between the two societies.

From TEPA to Tech: Charting the Future

The discussions went beyond broad strokes, delving into the operationalisation of existing frameworks like the EFTA (European Free Trade Association) and the newly signed Trade and Economic Partnership Agreement (TEPA). Leaders outlined key areas for immediate and long-term collaboration, including high-tech manufacturing, start-ups, and semiconductors. In a nod to shared global challenges, they also focused heavily on green solutions such as renewable energy, waste management, and cutting-edge carbon capture and storage technologies.

Finance Minister Stoltenberg Sees “Many Opportunities”

The spirit of cooperation carried into a meeting with Norway’s Minister of Finance, Jens Stoltenberg. Mr. Stoltenberg remarked that India’s sustained economic growth offers a landscape rich with opportunities for Norwegian investment and expansion.

Their talks zeroed in on the renewable sector, with a specific focus on solar power, rare earth processing, and carbon capture and storage—areas where Norwegian technology and Indian scale could create a powerful synergy. Both parties agreed to work intensively towards leveraging the TEPA, particularly within the blue economy and green economy. The conversation also highlighted the potential for increased investment into India from Norway’s massive sovereign wealth and pension funds.

Mr. Stoltenberg echoed Prime Minister Støre’s sentiments, reiterating Norway’s keen anticipation for Prime Minister Modi’s visit later this year and expressing hope that it will usher in a new, expanded chapter in India-Norway cooperation.

With strong political will and burgeoning business interest, the stage is set for 2024 to be a landmark year in the India-Norway partnership.