In a high-level plenary titled “Legal Framework of Climate Finance”, Justice Jawad Hassan of the Lahore High Court said it was important to know what climate financing law was in Pakistan and what the legal framework Pakistan had offered. He said local and international donors had raised three questions during the last COP28.
The questions were whether there is any legal framework for financing law in Pakistan, how climate financing is protected in Pakistan, and whether there are any disputes regarding it and how the courts would address them. He emphasized that Pakistan was the most deserving country for climate grants.
Justice Jawad Hassan emphasised the critical need for a comprehensive legal and regulatory framework to enhance climate finance initiatives in Pakistan, particularly, in response to the severe impacts of climate change the country faces. He highlighted the necessity of establishing clear mechanisms for climate adaptation and mitigation financing, especially as Pakistan engages with the Loss and Damage Fund, while also addressing challenges such as defining eligibility for vulnerable communities and ensuring equitable access to funds.
Mr Khurram Lalani said that while international climate finance is very important, it is crucial for Pakistan to introspect and identify areas where governance can be strengthened. He emphasised the need to rely on science when selecting solutions for investment. “I recommend that the government focus on land and soil use policy, coastal and marine policy, and a forest framework, as Pakistan lacks a National Forest Framework,” he said. He further emphasized that promoting electric vehicles, as done internationally, is a great initiative towards reducing smog, which Lahore has been suffering from. This goal can be achieved by reducing the cost of electric vehicles through incentivising EV companies with subsidies, such as tax exemptions, discounts on land costs, and reduced import duties. These measures would also help lower the cost of batteries, which is a major factor contributing to the unaffordability of such vehicles for the general public
Dr Christian Tietje said increased access to finance could build capacity and address soft limits to adaption and avert rising risks, especially for developing countries, vulnerable groups, regions, and sectors. Public finance is an important enabler for adaptation and mitigation and can also leverage private finance, Dr Tietje said.
Dr Petra Minnerop talked about Article 6 of Paris Agreement and said it took three years to negotiate the Paris Agreement rulebook, consisting of 20 decisions, and adopt several sets of guidance and rules of modalities. She said the existing market mechanisms under the Kyoto Protocol have resulted in verifiable emission reductions that would not have occurred without these instruments. Market approaches permit countries to identify and enable the most cost-effective options to meet mitigation challenges, she added.
Syed Bulent Sohail proposed several options including incentives from the State Bank of Pakistan and Security and Exchange Commission of Pakistan, tax incentives from the Federal Board of Revenue and inclusion of carbon credits in the export control list under the import and export control Act.
