Senate Standing Committee on Climate Change, Thursday emphasized the urgent need for innovative climate financing solutions to address Pakistan’s growing environmental challenges.
The meeting, that met here with Senator Sherry Rehman, in the chair focused on bridging the staggering $340 billion funding gap required for climate resilience, advancing the Electric Vehicle (EV) Policy, and addressing bureaucratic hurdles in accessing climate funds.
Senator Sherry Rehman, highlighted the critical disparity in financial capacity between Pakistan and regional counterparts like Bangladesh.
“Climate finance is not just about pledges; it’s about ensuring timely access to funds and building institutional capacity for climate resilience,” she stated.
Rehman stressed that Pakistan’s current financing structures are inadequate, leaving the country lagging in climate adaptation and mitigation efforts.
Meanwhile, the finance minister echoed these concerns, acknowledging the challenges in climate adaptation and financing.
He emphasized the need for a structured approach, incorporating key enablers such as the National Adaptation Plan and National Climate Finance Strategy.
“Green technology is pivotal for sustainability, but clear definitions and parameters are essential for effective monitoring and reporting,” he said.
He also noted ongoing discussions with the International Monetary Fund (IMF) under the Extended Fund Facility, with around $1 billion expected.
However, bureaucratic inefficiencies continue to hinder access to climate funds, underscoring the need for streamlined processes.
Both Senator Rehman and the Finance Minister agreed on the necessity of creative programming for climate financing to ensure effective resource mobilization and project execution.
They also discussed the importance of the EV Policy in reducing carbon emissions and combating urban pollution.
Senator Rehman emphasized, “We must ensure that the EV Policy is not just on paper but actively implemented with proper incentives.
This will not only reduce Punjab’s smog but also set the stage for a green energy transition across the country.”
The Finance Minister supported this stance, announcing the establishment of an advisory board to oversee policy matters.
Stakeholders agreed that addressing taxation anomalies is crucial for the successful implementation of the EV policy.
“Removing these barriers would incentivize both importers and manufacturers,” Senator Rehman added, citing global examples where such measures have significantly reduced pollution.
The meeting also addressed the limitations of carbon sinks and forestry projects, which have reached their maximum capacity.
Senator Rehman called for urgent policy reforms to enhance mangrove restoration efforts, currently managed through private-sector partnerships.
“Reliance on private funding alone is unsustainable. Innovative financing solutions, including targeting foreign markets for waste management, must be explored,” she asserted.
Senator Rehman further highlighted the need for a structured approach, including measurable project metrics and debt swaps, to improve financial viability.
She called for the direct involvement of both the Finance and Planning Ministries, advocating for a dedicated financial cell within the Ministry of Finance to oversee climate-related initiatives.
The session concluded with Senator Rehman emphasizing the committee’s outreach to provincial governments to ensure cohesive climate action across the country.
The meeting was attended by Senators Bushra Anjum Butt and Sarmad Khan, the Minister of Finance and Revenue, the Coordinator to the Prime Minister on Climate Change and Environmental Coordination Romina Alam, and senior officials from the Ministry of Climate Change and Environmental Coordination.
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