Climate finance and Global South 

Letter January 30, 2025
Climate finance and Global South 

The withdrawal of the United States from the Paris Agreement, during a decision by the Trump Administration — is a significant setback to global climate action. Pakistan, being a climate-vulnerable country, is among the countries that are going to be impacted seriously. A move such as this by the US — which is one of the largest GHS emitters — will exacerbate the leadership vacuum in global climate governance and cause new mistrust over international financial commitments, creating instability in joint efforts toward combating climate change.
The impacts are catastrophic for the countries of the Global South. For instance, Pakistan contributes only marginally to global emissions but faces tremendous climate vulnerabilities: melting glaciers, erratic monsoons and catastrophic floods. The 2022 flood alone is estimated to have cause damages worth over $15 billion. International financing of climate goals — such as those related to renewable energy and flood resilience — is at risk with reduced funding.
This gap demands innovative responses. Pakistan must prioritise mobilising local climate finance, engage in public-private partnerships, and explore mechanisms like green entrepreneurship and climate risk insurance. Regional cooperation can also provide shared financing and technology transfer opportunities that help strengthen the resilience of countries to climate-related hazards across borders.
While disappointing, Trump’s withdrawal also presents an opportunity for other developed countries and institutions to step up, engage beyond financial commitments, and meet their larger global efforts. As Rousseau reminds us, collective action remains essential. Pakistan can navigate these challenges and push toward sustainable solutions through its ability to rally global actors and foster local innovation.
Saroj Rizwan Khan
Karachi