Sustainable Finance Bureau Formed To Revolutionise Climate Finance

APP

Islamabad: The Sustainable Finance Bureau (SFB) has been established to reorient the Public Sector Development Programme (PSDP) towards sustainable finance, with 20 per cent (Rs 925 billion) of new PSDP schemes in FY2023-24 being green.

According to the World Bank’s 2023 report, Pakistan requires $348 billion to achieve systemic resilience between 2023 and 2030. This initiative is expected to qualify for concessional climate funds, enhancing Pakistan’s capacity to meet its climate targets.

The Ministry of Planning, Development, and Special Initiatives (MOPDSI) said that this investment is crucial for climate-proofing Pakistan’s development trajectory and ensuring the well-being of its people.

The initiative also underscored the importance of a Climate Responsive Public Investment Framework (CRPIF), integrating climate considerations into the planning and execution of all development projects.

This approach aligns with the National Adaptation Plan (NAP) and Nationally Determined Contributions (NDCs), signifying Pakistan’s dedication to climate-smart policies and practices.

Furthermore, the Planning Ministry’s Green Growth Framework aims to foster emerging green value chains and support economic activities that are both environmentally sustainable and financially viable.This framework is aligned with the latest global trends and best practices in green finance and technology.

Moreover, the MOPDSI has unveiled a comprehensive blueprint for tackling climate change-related challenges while enhancing sustainable development under the National Climate Change Policy (NCCP).

Under the policy, a National Climate Finance Strategy (NCFS) has been prepared to identify sectoral priorities and scale climate finance, the ministry said in a news release here on Sunday.

This NCFS is a cornerstone in Pakistan’s commitment to the Paris Agreement, focusing on leveraging private sector engagement, international climate finance and carbon markets, ministry added.

In 2021, the government approved the NCCP to pursue sustained economic growth by addressing the challenges of climate change.

It is to integrate climate change policy with other inter-related national policies and focus on pro-poor gender-sensitive adaptation while promoting mitigation to the extent possible in a cost-effective manner, building climate-resilient infrastructure, and others.

Pakistan is among the countries in the world that are most affected by weather- and climate-related hazards such as floods, landslides, droughts, heat waves, extreme colds, and cyclones.

Last year, Pakistan faced unprecedented devastation due to torrential rains and flooding in most parts of the country, particularly in Balochistan, which affected 33 million people and resulted in economic losses worth $30 billion.

In response, the government devised a comprehensive 4RF framework, which proposed effective coordination and participation arrangements among federal and provincial governments, development partners, donors, international and national NGOs, and the academic and private sectors.

The initiatives and strategies chalked out by the government are pivotal steps in this journey of leading Pakistan towards a sustainable and resilient future, signalling a new era of environmentally conscious and economically sound development in Pakistan, remarked the Planning Ministry.