Caretaker Finance Minister Shamshad Akhtar, addressing the 2nd Pakistan Climate Conference on November 1, revealed that Pakistan faces a monumental challenge when it comes to addressing climate-related issues. The staggering estimate is that the country would need an investment of approximately $340 billion, which translates to about 10 percent of Pakistan’s cumulative GDP. This number highlights the magnitude of the climate crisis Pakistan is confronting.
“One of the biggest challenges we have internationally is the issue of trade-offs between climate finance and developmental finance,” Minister Akhtar emphasized. This dilemma underscores the complex choices that nations face in balancing climate action with the need for economic development.
To tackle this challenge, a noteworthy development is that the Ministry of Finance is collaborating with the Ministry of Climate. They will jointly participate in COP28 in November and explore innovative climate finance mechanisms, a significant step toward achieving a sustainable and green future for Pakistan.
The impact of climate change on Pakistan’s economy is substantial and continues to grow as the nation faces severe economic challenges. As Minister of Energy Muhammad Ali stressed during his conference address, Pakistan’s transition to clean energy sources requires substantial investments in energy infrastructure by 2040.
Minister Ali highlighted the importance of leveraging the capabilities of the private sector, with special emphasis on the Overseas Investors Chamber of Commerce and Industry (OICCI). The OICCI represents some of the most advanced global organizations possessing the technologies and expertise required to contribute to Pakistan’s climate resilience and sustainability.
The significance of the issue goes beyond individual sectors. Philip Skinner, the Managing Director of GuarantCo, emphasized that in the current global context, there is no longer a distinction between ‘finance’ and ‘climate finance.’ He stressed that all financial institutions must incorporate climate considerations into their decision-making processes.
The urgency of addressing climate change in Pakistan was made vividly clear by last year’s devastating floods, which impacted one-third of the country’s territory. The consequences were not just measured in lives lost but also in terms of damaged schools, homes, and infrastructure.
To address these challenges and work towards mitigating the impacts of climate change, the Pakistan Climate Conference 2023 brought together a diverse array of global and local climate change experts, business leaders, policymakers, and social change activists under one roof.
Amir Paracha, OICCI President, emphasized that climate change is not a future phenomenon but is happening now, affecting the lives of current generations. Pakistan, despite contributing to less than 1% of the world’s greenhouse gas emissions, ranks as the eighth most vulnerable nation to the climate crisis.
The OICCI has taken a proactive role in organizing the Climate Conference for the second consecutive year. As a collective of over 200 multinational corporations in Pakistan, the OICCI is actively working to reduce its environmental footprint. They are also engaging with other stakeholders to promote a sustainable and green ecosystem.
The conference’s themes were closely aligned with the upcoming COP28, which is scheduled to take place in the UAE at the end of November. These themes included Climate Resilience and Capacity Building in Vulnerable Communities, Plastic and Waste Management, and Emissions Reduction and Green Energy.
Highlighting the importance of discourse on climate change impacts, OICCI Secretary General M Abdul Aleem stated that the conference showcased initiatives, projects, and campaigns that demonstrate global cooperation to address the climate crisis.
Rehan Shaikh, Vice President of OICCI, stressed the importance of aligning policies and investments with a net-zero future, emphasizing Pakistan’s commitment to the goals of the Paris Agreement.
The conference featured a distinguished lineup of speakers, including Dr. Shamshad Akhtar, Minister of Finance, Muhammad Ali, Minister of Energy, Adil Najam, WWF Global President, Bill Winters, Global CEO of Standard Chartered Bank, Philip Skinner, Managing Director of GuarantCo, Sarah Mooney, British Deputy High Commissioner, and other prominent business and thought leaders.
The conference received widespread support from the business community, trade bodies, academia, NGOs, and social sector organizations. Many attendees commended the OICCI for bringing together global talent to discuss this critical issue and work towards climate-positive solutions.
OICCI member companies, including Chevron, Dawlance, InfraZamin, Standard Chartered Bank, Unilever, BASF, Toyota Indus Motors, Nestle, and Abbott, played a pivotal role as key sponsors of the event, underlining the commitment of the corporate sector in addressing the climate crisis.