Pakistan stands at the crossroads of climate vulnerability, facing the harsh consequences of a crisis it did not create. Despite contributing a mere 0.8 percent to global greenhouse gas emissions, the country ranks among the top 10 most vulnerable to climate change.
This vulnerability translates into devastating consequences, with average annual losses exceeding USD 4 billion due to floods, droughts, and glacial melt – events directly linked to the actions of the highly industrialized world.
Pakistan has actively sought international climate finance, especially after the catastrophic 2022 floods exposed its deep vulnerabilities. However, the climate finance remains alarmingly insufficient, falling far short of the USD 348 billion required by 2030, as projected by the World Bank.
There is also an inherent problem with the current climate financing regime in Pakistan. Earlier this year, Transparency International Pakistan published a report which showed that climate funding in the country primarily flows through International Development Assistance (IDA) or debt-financed projects, neglecting innovative financing mechanisms.
This has been a direct result of a fragmented climate governance structure which essentially relies on the Public Finance Management system, with the Ministry of Finance, Planning Commission, and Ministry of Climate Change all playing roles, coupled with a lack of integration. The result has not merely been one of poor statistic — but it also directly impacts the country’s ability to develop and implement projects that could shield communities from the devastating effects of climate change. If Pakistan is to build a climate-resilient future, gaps in financing must be urgently addressed.
For many years, weak and flawed climate governance has acted as a roadblock for accessing finance for adaptation and mitigation, as well as discouraged potential donors who prioritize transparent and accountable utilization of funds. In the last few months, Pakistan also took noteworthy strides in establishing institutional frameworks to tackle the climate crisis. COP29, dubbed as “The Finance COP”, presents a critical opportunity for Pakistan to amplify its calls for greater climate finance as well as showcase its climate governance reforms.
After a lag of more than 7 years, the Climate Change Authority as envisioned under the Climate Change Act 2017 is now functional. In July 2024, Balochistan made history with the approval of its first-ever Climate Change Policy in 2024, setting a precedent for provincial leadership in climate action.
The BCCP (Balochistan Climate Change Policy) includes key transparency and accountability metrics, a key principle that will drive Pakistan’s climate governance frameworks. Punjab has also approved its Climate Change Policy 2024.
Worldwide Climate budget tagging (CBT) is considered the ideal and a low-investment method of reporting or reviewing climate spending. It is efficient, consistent, and transparent reporting of climate expenditure levels, both in budget allocations and in actual expenditure.
Some countries like Bangladesh publish full stand-alone reports based on CBT. In Pakistan, this has long been due at both the Federal and Provincial levels. For the first time, Gender and Climate Budget Tagging has been added to the Budgeting and Accounting System of the government in 2024-2025 budget. This will help in policymaking and coordinated action across the sectors.
As Pakistan moves forward with its climate governance reforms, policy development, and budgetary adjustments, it offers the hopeful example of what can be achieved in the face of adversity. But these efforts cannot succeed in isolation. The global community must step up to support Pakistan and other developing nations in their fight against climate change.
Pakistan is also advocating for a revised New Collective Quantified Goal (NCQG). The outdated USD 100 billion target established in 2009 is woefully inadequate in light of current climate realities. Pakistan is calling for at least 70 percent of climate finance to come in the form of grants, not loans, to ensure that vulnerable countries are not saddled with unsustainable debt.
As Pakistan approaches COP29, it stands at a pivotal moment in its climate journey. It has the opportunity to influence the global climate agenda, secure the funding it desperately needs, and set the stage for a future where climate resilience is not just a distant hope, but a concrete reality.
Copyright Business Recorder, 2024