Connecting Ideas, Investment and Impact for Resilient Development
Plenary 1.2: Connecting Ideas, Investment and Impact for Resilient Development
For Pakistan
Policy Direction
- Decouple growth from emissions through bold, early and predictable policy. Federal and provincial governments should treat climate action as an economic opportunity rather than a burden and take decisions that link emission reductions with growth and competitiveness, drawing on Denmark’s experience. Policy must keep pace with private sector ideas, which often move ahead of the bureaucracy.
- Give investors clear and coordinated climate and investment policies. Set clear priorities, responsible institutions and implementation timelines, so investors are not asked to absorb currency, policy and climate risks at the same time.
- Build the green transition on Pakistan’s own strengths. Government and the private sector should use Pakistan’s young population, abundant renewable resources and entrepreneurial spirit to drive a green transition that creates jobs, strengthens resilience and delivers inclusive growth.
- Set up a coordinated climate-investment project preparation facility. Climate finance has declined mainly because of a shortage of bankable projects. Federal and provincial institutions, with development partners and financial institutions, should develop bankable projects, strengthen institutional capacity and speed up decisions. Pakistan needs about USD 50 billion a year, against about USD 15 billion in combined federal and provincial development budgets.
- Smaller, targeted projects can generate meaningful returns, demonstrate viability and build long-term investor confidence. Bundling them can attract private capital.
- Restore the Climate Change Ministry’s development allocation and protect public funding for community protection. The ministry’s development allocation has been declining. Grant and public funding should remain available for essential protection, such as flood defences, which has no direct commercial return.
- Energy efficiency is ‘the cheapest fuel.’ Government, power sector institutions and the private sector should scale up renewables and efficiency through Public-Private Partnerships and manage the growth of rooftop solar through better grid management and power-sector financial planning.
- Prepare exporters for the EU Carbon Border Adjustment Mechanism (CBAM). Government and businesses should help firms in CBAM-covered sectors improve energy efficiency, emissions measurement, environmental data, resource use reporting and traceability, so they meet international market requirements and stay competitive.
- Build climate risk into development planning and investment appraisal. Planning, water and climate institutions should account for water security, flooding, extreme heat, agricultural disruption and coastal erosion, and extend water stewardship beyond factory gates to surrounding catchments and communities.
- Government and local authorities should give women, small farmers, small businesses and affected communities a voice in decisions on land, water and livelihoods, and access to adaptation resources. Farmers’ climate risks and their experience of coping with them must be heard and understood.
- Government and businesses should report climate commitments and investments transparently without greenwashing, and track outcomes such as projects financed, better decisions, protected businesses and secure livelihoods. This should build on the green taxonomy, climate budget tagging and Green Sukuk ahead of COP31.
- Public budgets alone are ‘a drop in the ocean’ against the scale of the challenge. Businesses, financial institutions, investors and development partners should work together to direct investment toward green businesses and bring sustainable projects to life on the ground.
- Expand concessional finance, guarantees and currency-risk instruments. These instruments are needed to mobilise private capital for adaptation and resilience.
- Expand Pakistan-Denmark commercial cooperation on green energy and energy efficiency. Governments and private sectors of both countries should adapt proven Danish solutions that suit Pakistan. A global challenge requires a collective global effort.
- Sustain platforms that connect ideas, investment and impact. Platforms such as the ‘Sustainability Investment Expo’ should continue to link innovative ideas with investment and partnerships, recognise organisations delivering practical solutions, and keep climate action high on the agenda despite competing priorities.