The European Union's Carbon Border Adjustment Mechanism (CBAM) is moving from theory to strict methodology. While Pakistan's direct exports of steel and cement to Europe are limited, the broader impact on the textile sector is significant as buyers begin tracing embedded emissions across the entire supply chain. To maintain competitiveness, Pakistani industries must move beyond basic survival and implement robust monitoring, reporting, and verification systems. Establishing a domestic Emissions Trading System (ETS) could allow the country to price carbon internally and incentivize decarbonization before international pressures become prohibitive.
