Faiza Tehseen

A well-structured Climate Finance Agenda (CFG) is essential for bolstering Pakistan’s climate resilience and attracting funding for adaptation and mitigation projects. “CFG will help draw both domestic and international investors to sustainable development projects aimed at mitigating environmental risks,” said Muhammad Saleem, spokesman for the Ministry of Climate Change and Environmental Coordination. Speaking exclusively to WealthPK, Saleem highlighted that Pakistan ranks among the top 10 countries most vulnerable to climate change, according to the global risk index.

“Like other developing countries, Pakistan depends on international climate finance to implement adaptation and mitigation initiatives. However, the lack of a comprehensive and investor-friendly framework hampers the necessary funding inflow. The CFG will serve as a critical tool to address climate-related risks,” he explained. Saleem emphasized that the CFG is crucial for ensuring clarity, transparency, and alignment with global standards, such as the Paris Agreement and the United Nations’ Sustainable Development Goals (SDGs).

“It will also incentivize investment, making climate-focused projects more attractive to investors.” He added that the agenda should encompass climate resilience policies, defined institutional roles, and strategies to address climate finance challenges. “Key instruments for success include aligning government bodies, introducing innovative funding mechanisms, and diversifying domestic resources,” he noted. “The 2022 floods directly affected about 33 million people, causing socioeconomic losses of $30 billion. To address this devastation, bridging Pakistan’s climate finance gap is imperative,” Saleem said. “By 2030, this gap is projected to reach $348 billion.”

He stressed that various sectors—including renewable energy, climate-resilient agriculture, water management, and urban infrastructure—urgently need climate finance. “Strategic actions, such as policy reforms, capacity building, public-private partnerships, and active participation in international climate finance initiatives, are vital for attracting these funds,” he added. “A well-framed agenda is not optional; it is essential for Pakistan. By demonstrating commitment through practical policies and actionable plans, the potential of climate finance can be unlocked, paving the way for a resilient and sustainable green future,” Saleem concluded.

In a discussion with WealthPK, Muhammad Akbar, an environmentalist from Gilgit-Baltistan, underscored the importance of a properly designed CFG to attract both local and international investors. “The primary goal of CFG is to mobilize financial resources for climate mitigation and adaptation efforts,” he said. Akbar explained that CFG could provide a roadmap for systematically accessing and securing climate finance for targeted projects. He added that both domestic and international climate finance agencies, as well as the private sector, could be engaged in this effort. “To address climate impacts, adaptation to challenges is critical and requires substantial investment,” Akbar said.

“A comprehensive CFG will not only secure international funding but also attract investors seeking green ventures. Organizations such as the Asian Development Bank and the Green Climate Fund (GCF) can support Pakistan, provided there is a robust proposal and governance framework ensuring accountability.” He further noted, “Under CFG, a climate finance framework can be aligned with a smart economic approach to allocate resources effectively to sectors and communities most vulnerable to climate change.”

Credit: INP-WealthPk