Govt unveils climate finance strategy

Seeks to mobilise funds for resilience; aims to bridge $348b climate finance gap by 2030

ISLAMABAD:

Pakistan introduced its first National Climate Finance Strategy (NCFS) at the COP29 conference in Baku, on Thursday, outlining a framework to mobilise climate finance for adaptation and mitigation. Federal Finance Minister Muhammad Aurangzeb and Romina Khurshid Alam, Prime Minister's Climate Change Coordinator, unveiled the strategy, which aims to scale climate-related investments, attract international finance, and enhance domestic financial systems, according to a press statement released by the Ministry of Climate Change & Environmental Coordination.

Aurangzeb described NCFS as a roadmap to secure climate funding and said it is built on principles of transparency, accountability, and inclusivity. "It leverages international, domestic, and private finance," he noted, adding that the strategy is pivotal to Pakistan's commitment to the Paris Agreement by engaging the private sector, climate finance, and carbon markets. Aurangzeb also highlighted that NCFS identifies sectoral priorities and financing tools to support climate resilience.

Alam called the NCFS a "historic milestone," underscoring its role in bridging Pakistan's estimated $348 billion climate finance gap by 2030. She stated that the NCFS would accompany a national climate finance portal to track inflows and outflows, ensuring transparency and inclusivity with input from all stakeholders. Alam also mentioned that Pakistan, ranked among the top 10 most climate-vulnerable countries, experienced a $30 billion loss from the 2022 floods, impacting 33 million people. "Our NCFS seeks to fill this gap by climate-proofing investments and directing resources to our most vulnerable sectors and communities," she remarked.

The NCFS supports Pakistan's Climate Resilience Vision 2050 which encompasses resilient infrastructure, climate-smart agriculture, sustainable cities, and diverse ecosystems. Its three-pronged approach—whole-of-government alignment, diverse domestic resources, and innovative funding mechanisms—aims to unlock large-scale climate finance. With a three-tier monitoring system, the NCFS prioritises transparency and accountability, ensuring alignment with Pakistan's climate goals.

"Our focus includes empowering marginalised communities, particularly women, and integrating circular economy principles to promote sustainability," Alam added.

Aisha Humera Moriani, Secretary of the Ministry of Climate Change, expressed pride in hosting the NCFS launch at COP29. "Pakistan's NCFS centres on three objectives: enhancing sectoral resilience, clarifying institutional roles, and expanding access to diverse finance sources," she said. The strategy builds on Pakistan's National Climate Change Policy, aiming for a 50% emissions reduction by 2030, with 15% through domestic means and 35% conditional on international support.

WWF President Adil Najam urged developed nations to fulfil their climate finance commitments, expressing concern over slow funding. Secretary General of CVF-V20, Mohamed Nasheed, called for unity among vulnerable countries to counter climate risks, while World Bank Climate Specialist Tom Kerr commended Pakistan's NCFS as a significant step in securing funds for climate resilience in South Asia.