Pakistan’s climate crisis demands urgent access to climate finance, yet local resources remain underutilized. Highlighting insights from Ali Tauqeer Sheikh, Climate Advisor to the Planning Commission and member of the newly established Loss & Damage Fund (LDF) and Fawad Hayat, the head of Climate Change at NDRMF, this article explores the role of small-scale organizations in raising funds and reducing reliance on international aid. It also discusses how Pakistan can support Afghanistan through SAARC and technical assistance, positioning itself as a regional leader in climate resilience.

Climate Finance, a term first introduced at COP15 (Copenhagen, 2009), refers to eco-financial aid provided by affluent countries to underdeveloped countries to tackle climate change. Although the definition of climate financing is still debated, it is fundamentally influenced by the “common but differentiated responsibilities and respective capabilities” (CBDR-RC) framework. Under the (CBDR-RC) structure, industrialized nations will provide financial assistance to developing countries to help them become more climate resilient – which is only fair given that the industrialized nations have contributed significantly to the global carbon footprint, resulting in rising earth temperature.

Pakistan, despite being the 5th most vulnerable country to climate change given its unique topography, has been deprived of its fair share of ‘green finance’ against climate impact (Press Information Department, 2024). If memory serves, in 2022 alone Pakistan was hit by devastating floods due to global warming; submerging one-third of the country underwater. This led to the country vociferously lobbying for green funds at COP27(2022) and rightfully so, as Pakistan had encountered $30 billion in damages without a fault of its own (WorldBank, 2022). The following year, at COP28 (UAE,2023) Pakistan again actively championed climate finance, with favorable results including the establishment of the Loss and Damage Fund (LDF), an additional pledge for the Green Climate Fund, and the approval of the Declaration on Sustainable Agriculture with economic pledges totaling over $57 billion were made in areas of interest to Pakistan (COP28, 2023). Although this is promising,  in retrospect they are mere pledges with zero implication. Regardless of Pakistan being promised international financial assistance time and again, it still needs to have a proper check and balance system to activate “green funding” and practically show progress accordingly.

Furthermore, while climate remains a concern, Pakistan’s financial landscape is plagued by several other internal issues, including economic instability and external debt (IMF loans, loans from China and other private creditors, etc.), a lack of infrastructure, an energy crisis, political instability, and social and security challenges. These hurdles prevent the country from focusing primarily on climate finance and environmental efforts.

While a majority of the world economies have promised net-zero emissions by 2050, how Pakistan will achieve this is truly a gazillion-dollar question now!

On the other hand, Mr. Ali Tauqeer Sheikh, Climate Advisor to the Planning Commission and member of the newly established Loss & Damage Fund (LDF), stated that the problem is not a lack of finances, but rather that they remain untapped. He also stated that the government should develop green projects on its own rather than seeking third-party consultants emphasizing we must “stop outsourcing our thinking”.

To achieve this, the State Bank of Pakistan must take a proactive role in promoting green finance by removing barriers, developing a green taxonomy, and facilitating cooperation in green finance to access climate funds effectively.

Currently, significant organizations such as Karandaaz Pakistan, the National Disaster Risk Management Fund (NDRF), Acumen Pakistan, and the Pakistan Environmental Trust (PET) are focusing on increasing climate financing or disaster management on a national scale. However, Mr. Fawad Hayat, the head of Climate Change at NDRMF, agreed with Mr. Sheikh that the main issue was Pakistan’s ineffective use of its current resources, owing to a “self-interested mindset” that resulted in the country failing to complete a single funded project within the timeframe specified to this day.

Regardless, to create an efficient climate disaster management system, Pakistan requires a joint-effort of both local and international actors to amplify its climate resilience and become a regional ‘green leader’ – aiding Afghanistan and making a regional impact.

Besides, it is time for Pakistan to think big by projecting its domestic equity argument on a global scale, similar to Bangladesh’s model. It must quantify, propagate, and outline its green investments on the ground level while promoting its successful projects to obtain international financial trust and raise further funds.

Given its geopolitical position and current diplomatic links with Afghanistan, Pakistan might also assume the role of a regional leader and provide technical assistance by equipping them with:

1. Early warning systems: These ‘ smart’ technologies provide early warnings for natural catastrophes, allowing Afghanistan to better prepare and save lives.
2. Climate financing and forecasting: Pakistan can help Afghanistan utilize CMIP5 by providing access to precipitation data, model performance knowledge, familiarity with the Global General Circulation Models (GCMs), collaboration opportunities, and capacity-building initiatives.
3. RegCM4 and Précis models: The Pakistan Meteorological Department uses the Regional Climate Model (RegCM4) and Précis models for climate outlooks. With these, Afghanistan can be assisted with climate modeling, downscaling, training, data sharing, research, risk assessments, climate finance, and regional cooperation.

Similarly, through regional joint initiatives such as the South Asian Association for Regional Cooperation (SAARC), both countries can develop a strategic partnership to focus on capacity building, disaster risk reduction, sustainable agriculture, renewable energy, and eco-friendly infrastructure – building an economically viable future for itself.

As a final thought, Pakistan’s climate vulnerability makes securing climate finance essential, yet challenges persist in accessing and effectively utilizing these funds. By modernizing financial infrastructure, enhancing institutional capacity, engaging the private sector, and fostering public and youth involvement, Pakistan can better mobilize international climate resources. Additionally, forging a strategic alliance with Afghanistan will strengthen Pakistan’s regional leadership contributing to a more climate-resilient South Asian region.

References

1. https://climatepromise.undp.org/news-and-stories/what-climate-finance-and-why-do-we-need-more-it#:~:text=Climate%20finance%20is%20critical%20to,the%20impacts%20of%20climate%20change.&text=As%20such%2C%20efforts%20to%20pivot,comes%20to%20climate%20change%20adaptation.
2. https://www.tandfonline.com/doi/abs/10.1080/17565529.2014.934768 -Research Article
3. https://www.gcisc.org.pk/UnivCon/Mobilizing%20Climate%20Finance%20for%20Pakistan%E2%80%99s%20Development%20Agenda-PIDE.pdf
4. https://www.rescue.org/article/why-climate-finance-so-important#:~:text=What%20is%20the%20impact%20of,shocks%20like%20floods%20and%20droughts.
5. https://climatepromise.undp.org/news-and-stories/what-climate-finance-and-why-do-we-need-more-it#:~:text=Climate%20finance%20is%20critical%20to,the%20impacts%20of%20climate%20change.&text=As%20such%2C%20efforts%20to%20pivot,comes%20to%20climate%20change%20adaptation.
6. https://unfccc.int/topics/introduction-to-climate-finance#:~:text=Climate%20finance%20is%20needed%20for,impacts%20of%20a%20changing%20climate.
7. https://pid.gov.pk/site/press_detail/25011
8. “International Conference on Climate Resilient Pakistan Geneva, 9 January 2023,” Ministry of Foreign Affairs, Government of Pakistan, January, 2023.
9.  “Bangladesh”, Green Climate Fund, https://www.greenclimate.fund/countries/bangladesh
10. New climate finances – Newspaper – DAWN.COM
11. https://mocc.gov.pk/SiteImage/Policy/NCCP%20Report.pdf
12. Early Warning Systems – https://www.undp.org/pakistan/press-releases/ministry-climate-change-and-undp-building-resilient-pakistan-through-early-warning-systems#:~:text=These%20Early%20Warning%20Systems%20will,building%20the%20resilience%20of%20communities.
13. https://www.saarc-sec.org/index.php/areas-of-cooperation/environment-natural-disasters-biotechnology
14. Regional climate assessment of precipitation and temperature in Southern Punjab (Pakistan) using SimCLIM climate model for different temporal scales – Article from Journal “ Theoretical and Applied Climatology”
15. https://www.cop28.com/en/news/2023/12/CP28-mobilizes-over-57-billion-in-first-four-days
16. https://www.worldbank.org/en/news/press-release/2022/10/28/pakistan-flood-damages-and-economic-losses-over-usd-30-billion-and-reconstruction-needs-over-usd-16-billion-new-assessme

Witten by Saba Rehman

Saba Rehman is an intern at CRSS with a strong background in Business Management and Marketing. She is passionate about leading change in the corporate landscape by promoting eco-friendly practices and advocating for a sustainable, net-zero future.