Pakistan needs green bonds, carbon credits to drive climate action: FinMin

January 28, 2025 (MLN): To achieve climate adaptation and mitigation targets, Pakistan needs to leverage tools like green bonds, sustainability-linked loans, and carbon credits to empower the private sector to take a leading role in climate action.

Pakistan further requires an estimated $348 billion by 2030 for climate financing to combat vulnerabilities posed by climate change.

This discussion took place during the 3rd Pakistan Climate Conference, organized by the Overseas Investors Chamber of Commerce and Industry (OICCI) at the Mövenpick Hotel, Karachi, according to the press release issued today.

Federal Minister for Finance and Revenue, Muhammad Aurangzeb, addressed the attendees virtually, highlighting the critical importance of climate finance for Pakistan.

The success of Pakistan's first green Eurobond in 2021, which raised $500 million, illustrates our capacity to attract sustainable investments.

The two-day event brings together policymakers, business leaders, environmental experts, and thought leaders to tackle the escalating climate crisis facing Pakistan and propose actionable solutions for mitigation and adaptation.

“I commend OICCI for organizing this vital conference to confront the urgent climate challenges Pakistan faces", Muhammad Aurangzeb remarked.

"Ranked among the top 10 most climate-vulnerable countries globally, and with damages from the devastating 2022 floods exceeding $30 billion, the urgency for sustainable solutions and financing has never been greater", he added.

“Mobilizing sufficient climate finance demands enhanced access to international funding sources, such as the Green Climate Fund and the Adaptation Fund,” he further stated, highlighting the crucial role of innovative financing mechanisms.

The Minister reaffirmed the Ministry of Finance's commitment to promoting an enabling environment through fiscal reforms, regulatory support, and capacity building to attract both international and domestic investments in green projects.

Dr. Shamshad Akhtar, Chairperson of the Pakistan Stock Exchange and former Finance Minister emphasized the economic risks posed by climate change and the need for integrating resilience into national economic strategies.

Pakistan must urgently focus on nurturing its green finance markets to ensure sustainable development and resilience against climate challenges, Dr Akhtar said.

“This requires developing a strong midterm strategic financing plan that aligns with our climate goals and economic priorities”, she added.

Climate vulnerabilities are not just environmental risks but also the biggest economic threats we face, especially considering Pakistan’s economic struggles,” Shamshad Akhtar further noted.

Yousaf Hussain, President of OICCI, reiterated the chamber’s commitment to sustainable development.

He emphasized the importance of public-private partnerships and collaborative efforts to achieve Pakistan’s climate goals.

“Pakistan’s position as one of the most climate-vulnerable countries calls for urgent and collective action,” he stated.

“This conference serves as a platform to catalyze transformative change, enabling us to address sustainability challenges and build a resilient future.”

The conference agenda features panel discussions and presentations on critical topics, including climate finance, economic impacts of climate change, advancing circularity, decarbonization, and public-private partnerships for climate resilience.

The second day of the conference will focus on actionable strategies, including policy recommendations and business innovations to drive sustainable development.

The event will conclude with a unified call to action for stakeholders to implement effective climate solutions.

Organized with the support of leading organizations, the 3rd Pakistan Climate Conference highlights the collective commitment toward sustainability and a secure future for Pakistan.

Copyright Mettis Link News