COP29 Monitoring Desk Islamabad
BAKU/ Azerbaijan : 14 Nov 2024 – Pakistan launched on Thursday its first National Climate Finance Strategy (NCFS) to address the escalating challenges posed by global heating by mobilising financial resources for climate mitigation and adaptation efforts, focusing on scaling up climate-related investments, attracting international finance and strengthening domestic financial systems, according to a press release issued here from the Ministry of Climate Change & Environmental Coordination.
Pakistan’s Federal Finance Minister Muhammad Aurangzeb and Pakistani Prime Minister’s Coordinator on Climate Change Romina Khurshid Alam jointly launched NCFS at Pakistan Pavilion in Baku on the sidelines of the two-week UN-led global climate conference (COP29).
“Its really a moment of pride for us to be able to roll out Pakistan’s first-ever climate finance strategy, a major step in our commitment to a sustainable and climate-resilient future,” PM’s climate aide Romina Khnurshid Alam said in her keynote remarks at the launching event.
Explaining about the strategy, she said that the climate finance strategy outlines a path to bridge the significant climate finance gap facing Pakistan—a gap we estimate at $348 billion by 2030 for our climate-resilient and low-carbon development goals.
Pakistan in the World – April / May 2024
Ranked among the top 10 most climate-vulnerable countries, Pakistan experienced a $30 billion loss in the 2022 floods, directly affecting 33 million people.
“Our NCFS primarily seeks to plug this gap by establishing a climate finance framework aligned with a whole-of-economy approach, aiming to climate-proof investments and allocate resources to our most vulnerable sectors and communities,” Romina Khurshid Alam remarked.
She highlighted that Pakistan’s climate resilience vision 2050 encompasses resilient infrastructure and agriculture, climate-smart cities, and ecosystems that provide diversified livelihoods.
The NCFS is well-thought out roadmap that focuses on climate-proofing policies, clarifying institutional roles, and enhancing our climate finance systems. Its three-pronged approach—whole-of-government alignment, diversified domestic resources, and innovative funding mechanisms—will be instrumental in unlocking climate finance at scale.
With transparency and accountability as core principles, a three-tiered monitoring system underpins the NCFS, ensuring every effort aligns with Pakistan’s commitments and goals.
Pakistan for “redefining” the global climate finance framework to “effectively meet the needs of vulnerable nations”
Shedding light on the inclusive policy actions to be taken in the light of NCFS, Pakistani PM’s climate coordinator Romina Khurhsid Alam highlighted, “We also prioritize inclusive policies that empower marginalized groups, particularly women, integrating circular economy principles to drive resource efficiency and sustainable development.”
The Pakistani finance minister Muhammad Aurangzeb said having seeing the launch of NCFS is a matter of rejoice as it provides a roadmap to access and secure climate finance from available funding channels.
He also termed NCFS a cornerstone of Pakistan’s commitment to the Paris Agreement, underpinning the unprecedented significance of engaging with private sector, international climate finance, and carbon markets.
It also identifies sectoral priorities and outlines measures to leverage various financial instruments to support climate resilience initiatives, which paints a clear framework for climate finance from various channels, Mr. Aurangzeb highlighted.
“Above all, the launching of NCFS actually reflects Pakistan’s proactive approach to mobilising climate finance and building resilience against climate-induced challenges,” the Pakistani federal finance minister told the participants of the event.
“Acumen’s Climate Action Fund for Pakistan,”
Federal Minister for Finance, Muhammad Aurangzeb emphasized the urgent need for innovative climate adaptation solutions to support communities most affected by climate change, who contribute the least to global emissions.
He made these remarks at the event “Acumen’s Climate Action Fund for Pakistan,” held at the Pakistan Pavilion during the COP29 summit in Baku on Thursday.
Highlighting Pakistan’s achievements, the Finance Minister noted the creation of the country’s first fund dedicated to agriculture, with a particular focus on climate resilience.
Romina Khursheed Alam, Coordinator to the Prime Minister on Climate Change, lauded the Acumen Climate Action Fund for Pakistan as a significant milestone in enhancing the country’s agricultural resilience.
She explained that the fund focuses on providing patient capital to agribusinesses, especially smallholder farmers who make up 90% of Pakistan’s agricultural workforce. Given Pakistan’s vulnerability to climate change—expected to reduce agricultural productivity by 8-10% by 2040—this initiative is critical to ensuring food security and promoting sustainable farming practices in the face of growing climate challenges, she stated.
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The Finance Minister added, “The Acumen Climate Action for Pakistan (ACAP) Fund will be the country’s first climate-focused private sector fund.” He highlighted that the fund will target businesses that enhance climate resilience in agriculture, particularly benefiting small farmers and impacting up to 13.1 million farmer lives. The Green Climate Fund is marking the largest private sector commitment for Pakistan to date.
The Finance Minister further noted that the ACAP Fund will create a transformative climate impact in Pakistan, leveraging private capital from top-tier investors and attracting foreign direct investment (FDI) to strengthen local businesses.
“ACAP is not only Pakistan’s first single-country fund but also one of the world’s first funds focused on climate adaptation. It has established strong ties with leading investors to bring powerful voices to the table,” he concluded.
Representatives from Acumen, the Green Climate Fund, and USAID also spoke at the event.
Pakistan in the World – October 2024
