GCF sets up $77.8m climate resilience fund for Pakistan

Project could lead to substantial reduction in flood risks by 2030

KARACHI:

Pakistan takes a monumental step towards combating climate change as the global Green Climate Fund (GCF), alongside three international and local partners, launches a transformative fund of $77.8 million. This strategic endeavour aims to mitigate the escalating threats of climate change in Pakistan, particularly focusing on reducing the risks of flooding and drought in the country. The initiative holds the potential to directly improve the lives of up to 10 million people, both directly and indirectly.

Under the banner of ‘Recharge Pakistan: Building Pakistan’s Resilience to Climate Change through Ecosystem-based Adaptation for Integrated Flood Risk Management,’ the nation secures vital funding to enhance its climate resilience strategies.

Read GCF announces $66m for Pakistan

Speaking at the Environmental Social Governance (ESG) Awards, an event organised by the American Business Council (ABC) to commend corporate adherence to ESG frameworks, Kanwal Bokharey, Senior Partnerships Advisor at USAID, unveiled the magnitude of collaboration, stating, “USAID is investing $5 million, matched by an additional $5 million from Coca-Cola, $1.8 million from WWF. This, combined with financing, has unlocked a remarkable $66 million from the GCF Fund, making the total project scale $77.8 million. This marks the largest GCF-funded project in Pakistan.”

Bokharey further commended the memorandum of understanding (MoU) signed between USAID and Coca-Cola in March, highlighting Coca-Cola’s role as an ESG-compliant company contributing significantly to sustainable development in Pakistan.

The seven-year project focuses on elevating ecosystems, minimising economic losses, and generating employment opportunities. Its anticipated impact is substantial, as it directly benefits 700,000 individuals and indirectly influences the lives of around 8 million people throughout its lifespan.

This initiative aligns seamlessly with the 2050 vision of ecosystem-based adaptation, paving the way for robust climate resilience. Bokharey highlighted that the project, once implemented, could lead to a substantial reduction in flood risks by 2030, enhancing water recharge along the four sides of the Indus Basin in Sindh.

The project will initially be operational in diverse districts across three provinces, namely Khyber-Pakhtunkhwa, Sindh, and Balochistan, with the potential for inclusion in Punjab at a later stage.

Jamshed Safdar, President of the ABC, called upon corporations to integrate ESG principles into their budgets, underscoring their pivotal role in societal betterment. Senator Fawzia Arshad, the event’s chief guest, stressed the need for private and public sectors to work collaboratively to mitigate the escalating climate challenges. She highlighted that addressing climate disasters requires a collective effort.

Speakers during a panel discussion underscored Pakistan’s standing as one of the top three most vulnerable victims of climate change despite contributing less than 1% of global greenhouse gas emissions. They emphasised that embracing ESG frameworks and investing in sustainable projects could not only curtail projected losses but also lead to additional revenue and profits.

A global study suggests that the corporate world could face a loss of $1 trillion due to climate change. However, investing $300 million in climate risk mitigation projects has the potential to yield an astonishing $2.1 trillion by transforming climate challenges into opportunities. ABC in Pakistan announced its inaugural Annual ESG Awards ceremony to recognise companies making strides in sustainability and social impact. Winners included industry giants like Coca-Cola Pakistan, Pepsico, PMI, KFC, and McDonald’s.

Published in The Express Tribune, September 1^st, 2023.

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