By Pakistan faces a significant financial challenge in addressing climate change, with an estimated requirement of $348 billion by 2030 for climate adaptation and mitigation efforts. This figure, highlighted by Federal Finance Minister Muhammad Aurangzeb, underscores the substantial investment needed to enhance the country’s resilience against climate-induced challenges. The World Bank’s 2022 report further emphasizes this need, estimating that Pakistan requires approximately $350 billion between 2023 and 2030 to effectively combat climate change. This amount represents about 10.7% of the nation’s cumulative GDP for the same period, reflecting the extensive financial commitment necessary for both adaptation and deep decarbonization initiatives.
In response to these pressing needs, Pakistan unveiled its first-ever National Climate Finance Strategy (NCFS) on November 14, 2024, during the 29th Conference of the Parties (COP29) in Baku, Azerbaijan. The NCFS aims to bridge the significant climate finance gap by establishing a comprehensive framework to mobilize resources for climate-resilient and low-carbon development goals. The strategy focuses on climate-proofing investments, clarifying institutional roles, and enhancing transparency through initiatives like the National Climate Finance Portal. The urgency of these efforts is underscored by Pakistan’s ranking among the top 10 most climate-vulnerable countries globally. The devastating floods of 2022, which caused over $30 billion in damages and directly affected 33 million people, highlight the critical need for substantial investment in climate resilience and sustainable solutions.
To achieve its climate objectives, Pakistan’s NCFS adopts a three-pronged approach: aligning efforts across all levels of government, harnessing domestic resources including public and private sector investments, and exploring innovative financial instruments such as green bonds and blended finance. This comprehensive strategy is designed to mobilize climate finance at scale, ensuring that resources are allocated effectively to the most vulnerable sectors and communities. The successful implementation of these strategies will require strong institutional frameworks, sustained international support, and a commitment to transparency and accountability. By mobilizing the necessary financial resources and fostering collaborative efforts, Pakistan aims to build a sustainable and climate-resilient future for its citizens.
