akistan, one of the countries most vulnerable to climate change, now faces an added challenge; its largest export sector, the textile industry, must quickly reduce carbon emissions to retain market access.

The European Union aims to phase out the carbon footprint of imported products by 2026. By 2030, the EU’s Carbon Border Adjustment Mechanism will impose carbon fees on all imports from non-member countries, putting non-compliant industries at a competitive disadvantage.

The 2015 Paris Agreement also sets a global goal to limit temperature rise to below 2°C preferably 1.5°C compared to pre-industrial levels. This requires a 45 per cent reduction in carbon emissions globally by 2030 and achieving net-zero emissions by 2050.

A major hurdle for Pakistan is the absence of a national carbon emissions database and a structured carbon reporting mechanism. Carbon footprint (CFP), energy footprint (EFP) and water footprint (WFP) are essential tools to measure and manage emissions and consumption. Without these systems, Pakistan cannot effectively track or claim a reduction in emissions.

To address this gap, a Faisalabad-based startup, Refurb N Up, incubated at the National Incubation Centre Faisalabad, is developing the country’s first National Carbon Emission Reporting Platform.

The platform is designed to enable public sector institutions and industries to measure, calculate, record and report their carbon footprints. This will not only enhance Pakistan’s climate resilience but also improve access to carbon credit markets and help industries maintain export competitiveness.

Hamid Ali, the founder of Refurb n Up, tells The News on Sunday that one of Pakistan’s major challenges is the lack of tools and technical expertise for emission tracking and reporting.

“The initiative aims to empower local industries and public sector bodies to accurately measure their carbon footprints, take action to reduce emissions and access global carbon credit markets. By providing the necessary tools and technical knowhow, this platform will fill a long-standing gap in Pakistan’s environmental infrastructure” he adds.

The project is supported by Technology and Management Integratics, a tech initiative led by students from the University of Engineering and Technology, Lahore. TMI focuses on developing sustainable solutions to empower people, reimagining systems and build resilience for a better future.

Amjad Mahmood, the operations director at TMI, emphasises the significance of the carbon emission reporting platform, noting that 60 per cent of Pakistan’s exports go to countries with strict environmental compliance regulations.

“Failing to meet these standards could result in punitive tariffs, damaging both the credibility and profitability of Pakistani exporters,” he warns.

Pakistan is the eighth-largest textile exporter in the world. The exports accounted for 10.55 per cent of the country’s GDP in 2024, generating $30.64 billion in revenue. The textile sector also provides employment to 40 per cent of the workforce and contributes around 60 per cent of the country’s total exports.

However, a global study on greenhouse gas (GHG) emissions revealed that Pakistan’s textile sector was the second-largest carbon emitter after the cement industry. It emitted an estimated 8.1 million metric tonnes of CO equivalent (MT CO e) annually and consumed approximately 27 per cent of the national electricity output and 40 per cent of the natural gas supply.

According to the study, the production of a single white T-shirt resulted in approximately 19,080.4 kilograms of CO equivalent emissions. The processing industry is the largest emitter, accounting for 15,734.8 kg CO e, followed by the spinning sector with 2,787 kg CO e. The knitting and garments segments contribute 253.8 kg and 304.8 kg CO e, respectively.

Surprisingly, despite agriculture’s large contribution, industrial activity accounts for a staggering 87 per cent of the total emissions, highlighting the urgent need to address the environmental footprint of industrial operations.

The platform is designed to enable public sector institutions and industries to measure, calculate, record and report their carbon footprints. This will not only enhance Pakistan’s climate resilience but also improve access to carbon credit markets and help industries maintain export competitiveness.

Globally, when it comes to water consumption and pollution, the textile industry ranks as the second-largest polluter after agriculture. The sector uses 3,600 dyes and employs over 8,000 chemicals during bleaching, dyeing, printing and finishing processes, many of those harmful to humans, marine life and the environment.

On average, a medium-sized textile mill consumes about 6 million gallons of water daily to produce 8,000 kilograms of fabric. Alarmingly, most industrial units neither attempt to reduce chemical use nor adopt greener alternatives to mitigate the environmental impact of these substances.

In Faisalabad, some major textile firms are making serious efforts to tackle these challenges. One such company is Crescent Textile, one of the city’s oldest mills, established in the 1950s.

Junaid Babar, technical director at Crescent Textile, tells TNS that they view the Carbon Emission Reporting Platform as a sustainable solution that can help reduce emissions and enable access to financing through carbon credits.

“Talks about reducing carbon emissions in the textile sector have been ongoing since 2016, but it wasn’t taken seriously until 2021,” he says. “Now international buyers are demanding information on a company’s carbon footprint, water use reduction strategies and clean energy utilisation.”

According to Babar, Crescent Textile has already reduced its carbon emissions by 30 per cent. It aims to achieve a 50 per cent reduction by 2030.

“We’ve planted 10,000 trees across our premises. We installed our first effluent treatment plant in 2002, long before it became common practice. Since 2016, we have reduced our water consumption by 60 per cent. We generate 25 per cent of our electricity from solar energy and have cut gas use by 40 per cent.”

He stresses the need for stricter enforcement of environmental laws by the government to meet global emission targets.

“The government should introduce incentives for industries working to reduce carbon emissions and hold accountable those who fail to comply with national and international environmental regulations.”

According to Junaid Babar, compliance with global environmental laws and efforts to reduce carbon emissions are not only essential for protecting exports but also crucial for preserving national resources.

He says that, in Faisalabad, direct discharge of industrial wastewater by some factories has severely contaminated the underground water supply. Alarmingly, the concentration of lead in the groundwater now exceeds the internationally approved limit even for industrial waste.

“Once, during a routine check of our wastewater, we discovered that the lead content was higher than the globally accepted threshold for treated discharge. Upon further investigation, we traced the issue back to our water source and found that the groundwater itself contained dangerously high levels of lead.”

Junaid Babar also highlights the alarming hardness levels of Faisalabad’s groundwater. According to the World Health Organisation, the acceptable total dissolved solids (TDS) level is 150 mg/L; while Pakistan’s national standards permit up to 500 TDS. However, in Faisalabad, the hardness level ranges between 2,500 and 2,600 TDS. At the Sargodha Road industrial area, it exceeds 4,000 TDS.

“If we continue to turn a blind eye to this crisis, the future generations will suffer the consequences of our negligence,” says Babar.

Professor Dr Amjad Hussain, the director of studies at the University of Engineering and Technology, Lahore, an environmental consultant to several organisations, says that Pakistan lacks a sustainable framework and a robust reporting mechanism to stay competitive in the global market especially in the context of climate change and greenhouse gas reduction goals.“If Pakistan fails to meet these international requirements, its exports could decline by 35 per cent to 50 per cent by 2030,” he says.

The professor praises the Carbon Emission Reporting Platform as a vital step forward, saying it can enable export-oriented industries in Pakistan to comply with international environmental standards and pave the way for long-term, sustainable economic growth.

As climate change concerns reshape global trade dynamics, Pakistan’s textile industry is at a critical crossroads. As international pressure, particularly from the European Union, mounts the sector must swiftly embrace sustainable practices to remain viable.

Meanwhile, enduring change requires more than technological solutions; it demands political will, strict regulatory enforcement and a collective commitment from all stakeholders to secure a cleaner, greener and more competitive future.

The writer has been associated with journalism for the past decade. He tweets @naeemahmad876