Experts Call for Urgent Action on Climate Smart Financing at High-Level Consultative Session
Islamabad :The Center for Peace and Development Initiatives (CPDI), in collaboration with the Friedrich Naumann Foundation for Freedom (FNF), successfully hosted a consultative session titled “Climate Change and the Importance of Climate Smart Financing”, The event brought together prominent parliamentarians, government officials, financial experts, and climate advocates to explore the critical role of sustainable finance in driving climate action
In his opening remarks, Mr. Mukhtar Ahmad Ali, Executive Director of CPDI, stressed the vital role legislators must play in addressing climate change, emphasizing that despite Pakistan’s minimal contribution to global emissions, it remains highly vulnerable to its effects. He called for stronger political will and bureaucratic reform to ensure climate-smart policies are implemented at every level of government.
Ms. Birgit Lamm, Country Head of FNF Pakistan, underscored the financial toll of climate change on Pakistan. She shared that the World Bank has estimated the damage from climate-related disasters to be $16 billion, with roughly 4% of the population plunged into poverty as a result. Ms. Lamm emphasized that despite these staggering losses and early warnings, Pakistan did not take sufficient action to mitigate the effects of the 2022 floods, which devastated the same regions impacted by the 2010 floods. She also called for more proactive measures to prevent future climate catastrophes.
Ms. Shaista Pervaiz, Member of the Standing Committee on Climate Change, acknowledged Pakistan’s ongoing struggle with climate issues, noting that many challenges stem from legislative gaps. She emphasized that the 18th Amendment, which devolved significant powers to the provinces, has created coordination challenges between provincial and federal governments. She further added that the importance of Nationally Determined Contributions (NDCs) and the urgent need for dedicated financial resources to meet Pakistan’s climate targets.
Mr. Amer Ejaz, CEO of MAHER Consulting, and Rashid Azeem, UBL’s Chief Green Banking Manager, focused on the critical role the financial sector plays in promoting climate-resilient development. They called for the banking industry to adopt green financing models and encouraged collaboration between financial institutions, the government, and private sector stakeholders to ensure climate resilience is factored into all investment decisions.
Dr. Majid Bilal, from the Indus Consortium, and Asim Jaffry, Country Program Lead of Fair Finance Pakistan, provided insights into the practical applications of green financing and Environmental, Social, and Governance (ESG) frameworks, underscoring the need for comprehensive policies that not only address environmental concerns but also prioritize social equity.
The consultative session concluded with a call to action for all stakeholders, urging greater alignment between financial systems, public policy, and climate goals. It reinforced the need for Pakistan’s legislators and policymakers to advocate for dedicated climate financing, ensure transparent use of funds, and drive climate-smart policy reforms.
