Pakistan is exploring green hydrogen to reduce its heavy reliance on imported oil and LNG, which currently drive trade deficits and economic instability. By using surplus solar and wind power for electrolysis, the country can minimize energy curtailment and create a storable energy carrier for hard to abate industries. Adopting a national hydrogen strategy is also seen as a way to protect export competitiveness against the EU Carbon Border Adjustment Mechanism (CBAM). This shift aligns with Pakistan's carbon market guidelines to attract international climate finance and generate emission reduction credits.
