Amir Paracha is the President of Overseas Investors Chamber of Commerce & Industry (OICCI) and is also the Chairman and CEO of Unilever Pakistan Limited. Mr. Paracha is part of the delegation from Pakistan at the ongoing UN Climate Change Conference – COP28. BR Research had a discussion with Mr. Paracha about the impact of climate change in Pakistan and the impact of COP28 on the country. Following is the edited excerpt of the discussion:

BR Research: What is the role of OICCI at COP28?

Amir Paracha: OICCI is deeply honoured to be the sole private sector chamber invited to participate at the prestigious Pakistan Pavilion. The participation of the leadership of the Overseas Investors Chamber of Commerce & Industry (OICCI) at COP28, in collaboration with the Government of Pakistan, sends a resounding message: the collective efforts of the public and private sectors are indispensable in addressing the pressing issue of climate change.

We are there to demonstrate the commitment of our members who are working towards decarbonizing their supply chains and stiving to achieve Net Zero. All our efforts to make our value chains green and sustainable require coordinated efforts of all stakeholders. Therefore, through this side event at COP we are exploring different ways in which the private sector can achieve their targets and help the government in achieving the NDCs committed at COP26.

BRR: Where does the business industry in Pakistan stand when it comes to combating and addressing climate change?

AP: The solution to Pakistan’s climate challenge is multifaceted. The private sector plays a crucial role in driving positive climate impact, utilizing innovative technologies and sustainable practices to lead the way towards green transitions. Public-private partnerships and global collaborations are essential for inclusive investments and financing, which are vital for building resilience in our economies.

Effective change requires a collaborative effort between the public and private sectors, engaging in dialogue to address the ground realities and take climate-positive actions. We must come together to establish the necessary policy and regulatory changes that will govern these actions. Additionally, it is crucial to identify and empower implementation partners, including the private sector, who will be responsible for executing these actions on the ground. To ensure accountability, we must establish a robust monitoring mechanism that encompasses all participants.

Businesses now view climate action as a compelling business opportunity. Environmental sustainability is no longer just a matter of ethics; it has become a strategic imperative for companies. Those that proactively address climate change, minimize their environmental footprint, and invest in resilience strategies are not only doing the right thing, but also safeguarding their long-term financial stability and maintaining their competitive edge. Embracing climate action is a wise business decision.

BRR: What is your agenda at COP28? What will you be talking about, especially in the Pakistani context?

AP: The OICCI will be hosting a multi-stakeholder dialogue with the Ministry of Climate Change (MoCC) within the esteemed Blue Zone at COP28, on Saturday, 9 December. This significant event will cover crucial topics such as Net Zero and Decarbonization. Our panel comprises experts from diverse backgrounds including KPMG, World Economic Forum, Unilever, Standard Chartered, UN Environment Programme, and the Ministry of Climate Change, that will delve into strategic approaches for businesses to catalyse the transition to a green economy.

At COP28, our agenda revolves around advocating for inclusive climate finance and promoting green financing tools in the Pakistani context. We will emphasize the critical role of private sector involvement in driving climate-positive projects and how innovative business models can be a catalyst for sustainable development.

Collaborating seamlessly with governmental entities, our objective is to underscore the significance of public-private partnerships in combating climate change and fortifying the resilience of our economies. This concerted effort at COP28 serves as a testament to our steadfast belief that uniting forces across sectors is pivotal in driving meaningful change towards a more sustainable and prosperous future.

BRR: What should be Pakistan’s role in climate change, given that as a country, Pakistan’s footprint in greenhouse emissions is insignificant?

AP: While Pakistan’s greenhouse gas emissions may be relatively small on a global scale, the country’s vulnerability to climate change impacts is significant. Pakistan should play a proactive role in promoting climate justice by adopting green financing tools and incentivizing investments in sustainable infrastructure.

In Pakistan, we are no longer facing the distant threat of climate change, but rather the harsh reality that demands immediate action. The devastating floods of 2022 submerged one-third of our country and affected millions of our fellow citizens. Despite our minimal contribution (0.9%) to global greenhouse gas emissions, Pakistan remains one of the most vulnerable countries to climate change.

With an annual GDP of USD 350 billion, how can Pakistan bridge the financing gap while ensuring that potential investment opportunities become tangible realities? Private sector financing holds the key to filling these gaps, providing sustainable funding for both green initiatives and transition needs. Failing to embrace this change will come at a steep cost, compromising our competitiveness on the global stage and jeopardizing valuable foreign exchange for Pakistan.

By fostering an environment conducive to sustainable growth and resilience, Pakistan can position itself as a trailblazer in the fight against climate change. Through innovative policies that incentivize green investments and prioritize climate-conscious strategies, Pakistan has the potential to set an example for other nations facing similar climate vulnerabilities. Unilever remains steadfast in its commitment to collaborating with Pakistan and global stakeholders, pooling resources and expertise to drive sustainable solutions that benefit both the nation and the planet at large.

BRR: What is your view of the investment climate in Pakistan? How do you see the business climate unfolding over the next year or so?

AP: Equitable climate finance is now of paramount importance. Governments, businesses, and international stakeholders must unite to mobilize resources on a scale that matches the magnitude of the challenge. Inclusive financing mechanisms are vital to ensure that no community is left behind in our pursuit of a sustainable and climate-resilient economy for Pakistan.

Private sector climate financing in Pakistan currently stands at a mere 5 percent, lagging Nigeria (10%), Kenya (14%), and India (51%). This financing gap necessitates the active involvement of both local and international private investors. By doing so, we can attract domestic and international investors to support climate-positive projects and ensure long-term economic stability for our nation. Our aim is to foster sustainable development and resilience, leaving a lasting impact on the future of our country.

To chart our path forward, Pakistan must embrace green financing tools that incentivize investments in sustainable infrastructure. Pakistan has already made a start in this space through initiatives like SBP’s Financing Scheme for Renewable Energy and the recently launched Gender Green Bond by Kashf Foundation. Pakistan must now actively work to attract investments from partners like the Global Climate Fund, impact investors, green venture capital firms and sustainable financing platforms to expand on the climate opportunity in Pakistan.

In the next year or so, we anticipate a positive trajectory as the government aligns policies with long-term sustainability goals. Clarity in guidelines and regulatory frameworks will not only encourage but also facilitate investments from businesses keen on bolstering the nation’s economic advancement through environmentally conscious endeavours. This convergence between policy and investor interests will catalyse a transformation towards a more sustainable and resilient Pakistan.

BRR: As the president of OICCI, how does the organization advocate for increased private sector involvement in sustainable practices and climate action in Pakistan?

AP: The OICCI represents a powerful force of over 200 multinational investors spanning across 14 sectors, all of whom play a pivotal role in shaping Pakistan’s economic landscape. Through their substantial investments, these multinational organizations offer a unique opportunity to attract new investors to the supplier market and advocate for global grants and foreign direct investment (FDI) in climate-positive initiatives within our country. Climate justice is not only a moral imperative for nations like Pakistan, but it also presents a remarkable business prospect.

The OICCI has been diligently working towards fostering collaboration between the public and private sectors to tackle climate challenges head-on. Over the past three years, we have been steadfast in our advocacy for the combined efforts of both sectors in combating climate change. Our journey commenced with the inaugural Pakistan Climate Conference in 2022, where we laid the groundwork to align Pakistan’s commitments made at COP26. The invitation extended to us by the Government of Pakistan serves as a testament to the OICCI’s unwavering dedication to being an integral part of the solution for Pakistan’s climate challenges.

OICCI advocates for increased private sector involvement by emphasizing the business benefits of climate action. Through awareness campaigns, policy recommendations, and collaborative initiatives, we promote sustainable practices as integral to long-term business success. OICCI encourages businesses to adopt green technologies, invest in resilience, and actively engage in climate-positive projects. By showcasing success stories, sharing best practices, and highlighting the tangible benefits derived from sustainability-focused strategies, we strive to inspire and guide businesses toward a more sustainable and profitable future. Our goal is to create a collective consciousness within the private sector, showcasing that sustainability is not only ethically responsible but also financially prudent in the evolving global landscape.

Through collaborative efforts, advocacy, and the provision of actionable insights, OICCI remains committed to empowering businesses to embrace sustainability as a cornerstone of their operations. We firmly believe that by driving this mindset shift and demonstrating the undeniable business benefits of climate action, we can create a resilient and thriving business ecosystem that balances profitability with responsible environmental stewardship.

BRR: What new policy, regulation, or financial initiative do you believe is necessary to solve the climate crisis in Pakistan?

AP: Policy and regulatory consistency are crucial in providing a stable and predictable environment for sustainable development. The government must ensure that policies and regulations align with long-term sustainability goals and provide clear guidelines for investors and businesses. These measures will not only contribute to the country’s economic growth but also help mitigate climate change and enhance the well-being of our citizens.

The OICCI advocates for policies that incentivize sustainable technologies, particularly those aligned with our initiatives. Financial support for eco-friendly solutions and the implementation of regulations that curtail carbon-intensive practices are crucial. The OICCI emphasizes the need for a strategic alignment of policies, financial initiatives, and regulatory frameworks to facilitate the adoption of sustainable practices and address the climate crisis in Pakistan.