OICCI proposes more climate finance, business role

The Overseas Investors Chamber of Commerce and Industry (OICCI) has underscored the urgency of mobilising climate finance at scale as the private sector is positioned to act as a central partner in building resilience.

The assertion came at the launch of OICCI's 3rd Pakistan Climate Conference Report titled "Creating an Enabling Environment for Private Sector Participation in Climate Resilience."

Ranked first on the Climate Risk Index 2025 despite contributing less than 0.9% to the global greenhouse gas emissions, Pakistan is bearing disproportionate losses. In 2022 alone, climate-induced disasters inflicted over $30 billion in damages, with recovery needs exceeding $16.3 billion.

Air pollution alone causes over 128,000 premature deaths annually, while productivity in agriculture has declined by 10-20% due to climate variability, further straining livelihoods and the economy. Experts warn Pakistan now requires $40-50 billion annually to effectively mitigate and adapt to climate risks.

Speaking at the launch of the report, Ministry of Climate Change and Environmental Coordination Secretary Aisha Humera Chaudhry said: "Pakistan's climate vulnerability is a globally acknowledged reality. But to respond effectively, we must channel substantial and timely climate finance towards local solutions. The role of the private sector, as showcased by the OICCI and its member companies, is central to our national climate strategy. We call on international partners to match Pakistan's climate ambition with significant funding support."

The economic argument for climate finance is clear. Without urgent decarbonisation, Pakistan's exports face mounting risks under new global trade frameworks, such as the EU's Carbon Border Adjustment Mechanism.

OICCI Secretary General M Abdul Aleem stressed "Pakistan's reliance on fossil fuels and carbon-intensive practices puts our exports at risk, especially under frameworks like the Carbon Border Adjustment Mechanism. Decarbonisation and green finance are no longer optional; they are essential to sustain economic growth and global competitiveness."