FinMin urges faster climate funding

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, virtually addressed the Climate Finance Dialogue held alongside the 30th Conference of the Parties (COP-30) in Belém, Brazil, urging faster global climate financing and simpler access for developing economies.

According to an official statement issued on Saturday, the minister underlined Pakistan’s urgent climate vulnerabilities and highlighted ongoing reform and policy initiatives. He called for accelerated financing, improved access modalities, and stronger technical assistance for developing nations.

Aurangzeb regretted his inability to attend the event in person due to pressing commitments in Pakistan but said the country remained an active participant in the global climate debate. He noted that while Pakistan has long understood the “what and why” of the climate challenge, the time has come to focus on implementation and delivery.

The finance minister reiterated that Pakistan is among the world’s most climate-vulnerable countries, where adaptation needs outweigh mitigation efforts. He said Pakistan already has key frameworks such as the Nationally Determined Contributions (NDCs), National Adaptation Plan, and the Climate Prosperity Plan with the V20 Group, which together provide a foundation for climate-driven development. He referred to the launch of Pakistan’s National Climate Finance Strategy, announced in Baku last year, and welcomed the State Bank of Pakistan’s Green Taxonomy Guidelines introduced earlier this year.

Aurangzeb highlighted Pakistan’s large climate financing gap but acknowledged the role of international financial institutions and multilateral development banks. He pointed to the Asian Development Bank’s continued support and the 10-year Country Partnership Framework with the World Bank, under which two of six priority pillars focus on climate change, including decarbonisation and resilience. He welcomed the $2 billion annual commitment, with one-third earmarked for climate projects.

Appreciating these developments, the minister said bureaucratic hurdles within the Green Climate Fund (GCF) must be reduced, particularly in accreditation, processing, and disbursement procedures. He emphasised that the Loss and Damage Fund, created at Sharm el-Sheikh, must move beyond planning toward actual delivery for vulnerable nations such as Pakistan.

He also informed the dialogue about Pakistan’s efforts to expand climate finance tools. These include climate action funds, a forthcoming $90 million fund by Ecumen, and plans to re-engage with global capital markets. He recalled that Pakistan’s $500 million WAPDA green bond had been heavily oversubscribed. He expressed optimism that Pakistan’s inaugural Panda Bond, expected by year-end, would be green-themed and help unlock Chinese capital markets.

Domestically, the minister said Pakistan is advancing green Sukuk and carbon market initiatives, citing Sindh’s successful pilot projects. He also mentioned active discussions on debt-for-nature swaps following recent engagements in Spain.