Clean Water Project by Korean Firm ATR Inc. – First Host Country Approval under Article 6.4

MoCC&EC has granted Pakistan’s first-ever Host Country Approval (HCA) under Article 6.4 of the Paris Agreement to ATR Inc., a Korean firm investing USD 20–25 million in the WASH sector in Punjab. The project will install 250 state-of-the-art water filtration plants between 2026 and 2035, in Lahore and Faisalabad, providing free, potable water to over 4 million residents while generating 1.5 million carbon credits.

Implemented in partnership with the Punjab Saaf Pani Authority, the project features Reverse Osmosis (RO) and Ultrafiltration (UF) technologies. The investment is non-debt-based, with operations and maintenance fully covered by the Korean developer until project completion, at which point the infrastructure will be handed over to the Punjab Government.

Key Impacts:

• Supports SDG 6 (Clean Water and Sanitation), SDG 8 (Decent Work and Economic Growth), and SDG 13 (Climate Action).
• Creates 1,000 direct and 5,000 indirect jobs; promotes local skill development and women’s participation.
• Supports biodiversity conservation, reduces fossil fuel and firewood dependency, and promotes sustainable groundwater management with real-time monitoring.
• Stimulates local economic activity through procurement and subcontracting.
• Sets a benchmark for future Article 6.4 projects and opens pathways to engage with the Korean Emissions Trading System (ETS).

Mehmood Booti Dumpsite Rehabilitation by RUDA – First Letter of Intent for Article 6.2/VCM

MoCC&EC has also issued the first Letter of Intent (LoI) under Article 6.2/Voluntary Carbon Market (VCM) provisions to the Mehmood Booti Dumpsite Rehabilitation Project, developed by the Ravi Urban Development Authority (RUDA). This project forms a key part of Chief Minister Punjab’s Green Punjab Vision, aiming to transform a 43-acre legacy landfill into a green urban space with an urban forest and solar energy park.

With a total investment of PKR 5 billion (USD 18 million), the project will generate approximately 930,474 tons of verified carbon credits from 2026 to 2040, using UNFCCC-approved methodologies for landfill gas capture, leachate treatment, afforestation, and solar energy generation.

Key Impacts:

• Supports SDG 3 (Good Health and Well-being), SDG 9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).
• Converts an environmental hazard into a sustainable public asset, improving air and water quality and enhancing urban biodiversity.
• Builds local capacity in carbon project development, MRV systems, and clean technology operations.
• Promotes climate-smart urban planning, and enhances land value and economic activity in surrounding areas.
• Demonstrates the viability of climate-smart financing and green infrastructure development in urban Pakistan.

Towards a Fully Operational Carbon Market

The granting of Host Country Approvals signals that Pakistan’s carbon market is now fully operational under a robust policy and regulatory framework. Several additional projects across sectors are currently in the pipeline and under active review. MoCC&EC as the Designated National Authority for Article 6, remains committed to ensuring utmost due diligence, transparency, and environmental and social integrity, enabling only the highest quality carbon offset projects to be recognized and traded internationally.

As Pakistan accelerates its transition to a low-carbon, climate-resilient economy, these milestone projects reflect the country's readiness to lead by example in South Asia. MoCC&EC welcomes global developers and partners to invest in Pakistan’s carbon market, confident that early movers will help define the high-integrity standards for future climate finance in the region.