ISLAMABAD: Speakers discussed the urgent need for sustainable finance in addressing escalating climate crisis at a consultative session here on Tuesday.

The session on “Climate change and the importance of climate-smart financing” was organised by the Center for Peace and Development Initiatives (CPDI) in partnership with the Friedrich Naumann Foundation for Freedom (FNF). A diverse group of parliamentarians, government officials, financial experts, and climate advocates attended the event, said a statement.

In his opening remarks, CPDI Executive Director Mukhtar Ahmad Ali emphasised the pivotal role of legislators in tackling climate change. He said though Pakistan’s contribution to global emissions was relatively small, the country remained highly vulnerable to its impacts. He called for stronger political will and bureaucratic reforms to ensure that climate-smart policies are implemented at all levels of government.

FNF Pakistan’s Country Head Birgit Lamm highlighted the significant financial toll climate change had taken on the nation. Citing World Bank data, Ms Lamm noted that climate-related disasters had inflicted $16 billion in damages, pushing roughly 4pc of the population into poverty. She stressed the need for proactive measures, pointing out that Pakistan failed to adequately prepare for the 2022 floods, which devastated areas previously hit by the 2010 floods. She urged immediate action to prevent future climate catastrophes.

Shaista Pervaiz, member of the parliamentary committee on climate change, discussed Pakistan’s ongoing climate challenges, many of which she attributed to legislative gaps. She noted that the 18th Amendment, which devolved powered to provincial governments, had created coordination issues between federal and provincial authorities.

She emphasised the importance of securing financial resources to meet Pakistan’s Nationally Determined Contributions (NDCs) and to address climate-related goals effectively.

Financial sector representatives Amer Ejaz, CEO of Maher Consulting, and Rashid Azeem, Chief Green Banking Manager at UBL, underscored the banking industry’s role in fostering climate resilience. They advocated for the adoption of green financing models and called for greater collaboration between financial institutions, the government, and private sector stakeholders to incorporate climate resilience into all investment decisions.

Experts from civil society also weighed in with Dr Majid Bilal of the Indus Consortium and Asim Jaffry of Fair Finance Pakistan discussing the practical applications of green financing and environmental, social, and governance (ESG) frameworks. They stressed the need for policies that not only address environmental concerns but also ensure social equity.

The session concluded with a unified call for greater alignment between financial systems, public policy, and climate goals.

The participants urged Pakistan’s legislators and policymakers to advocate for dedicated climate financing, ensure transparency in fund usage and push for climate-smart reforms.

Published in Dawn, September 25th, 2024