Climate finance
2025-02-15
THE recent withdrawal of the United States from the Paris Agreement has significantly set back global climate action, and is bound to affect Pakistan, which is a vulnerable country. As one of the largest emitters and key contributors to global pollution, a move such as this by the US has led to an amplification of the leadership vacuum in global climate governance.
Besides, it has added a new level of mistrust over international financial commitments, creating instability in joint efforts towards combatting climate change.
The impacts are catastrophic for the countries in the Global South. For instance, Pakistan contributes only marginally to global emissions, but faces tremendous climate vulnerabilities: melting glaciers, erratic monsoons and catastrophic floods.
The floods in 2022 caused damage worth over $30 billion. International financing for ambitious climate goals, like renewable energy and flood resilience projects, is at risk with reduced funding.
This gap demands innovative responses.
Pakistan must prioritise mobilising local climate finance, engage public-private partnerships, and explore mechanisms like green entrepreneurship and climate risk insurance. Regional cooperation can also provide shared financing and technology transfer opportunities that would help strengthen the resilience of countries to climate-related hazards across borders.
While disappointing, the US withdrawal also presents an opportunityfor other developed countries and institutions to step up, engage beyond financial commitments, and meet targets related to larger global efforts.
As Rousseau reminds us, collective action is essential. Pakistan can navigate these challenges and push towards sustainable solutions through its ability to rally globalactors andfosterlocalinnovation.
Saroj Rizwan Khan Karachi