Amid the 29th meeting of Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change is underway, the global experts emphasised on mobilizing international climate finance for sustainable development, and private sector involvement in climate resilience in vulnerable countries like Pakistan.
Dr. Abid Qaiyum Suleri, Executive Director of the Sustainable Development Policy Institute (SDPI), highlighted the critical importance of finance in addressing Pakistan’s climate challenges.
“This COP is a finance COP,” Dr. Suleri said, emphasizing the ongoing discussions about the role of multilateral development banks and Pakistan’s climate finance strategy. He thanked overseas chambers of commerce and industry for their continued support in advancing the global climate agenda.
M. Abdul Aleem, President of the Overseas Investors Chamber of Commerce and Industry (OICCI), underscored the severity of climate change as Pakistan’s “biggest threat” and described the country’s path toward sustainability as a “frog leap.” OICCI, South Asia’s largest chamber, represents over 200 top international businesses from more than 30 countries, contributing significantly to Pakistan’s revenue.
Aleem outlined the organization’s commitment to mobilizing climate and environmental sustainability, with a focus on raising $50 million for green investments. OICCI is the sole private sector participant at COP29, advocating for eco-friendly private sector partnerships and increased renewable energy (RE) investments, particularly in solar and wind.
Despite these efforts, Aleem acknowledged that they are not sufficient to steer Pakistan onto a more sustainable path. He urged the private sector to explore green financing mechanisms, such as green bonds, to raise capital for clean energy projects. Pakistan, Aleem pointed out, has one of the world’s largest solar radiation potentials, which could not only ensure energy security but also contribute to global renewable energy infrastructure.
Andrew Bailey, Managing Director of BASF Pakistan, also highlighted the private sector’s pivotal role in enhancing Pakistan’s climate resilience. According to the World Bank, Pakistan requires $348 billion from 2023 to 2030 to meet its Nationally Determined Contributions (NDCs) for carbon emission reduction. Bailey noted that OICCI member companies have already invested $23 billion over the past decade, with a strong focus on water recycling, plastic management, and renewable energy.
Fiona Duggan, Global Sustainability Climate Lead at Unilever, emphasized the importance of scalable, localized climate action. With 90% of Pakistanis using Unilever products, Duggan stressed that the company has a responsibility to drive change. She called for a shift to biofuels, the incentivization of sustainable farming practices, and the development of strategies that deliver benefits at the local level, especially for small and medium enterprises (SMEs).
Rob Cameron, Global Head of ESG Engagement at Nestlé, echoed Duggan’s sentiments, emphasizing the risks posed by water scarcity and the need for regenerative agriculture to secure food supplies. He also noted that Nestlé’s efforts to curb plastic waste and reduce emissions in supply chains were aligned with Pakistan’s broader sustainability goals.
Veronica Nyhan Jones, Global Head of Climate Capacity and Inclusion Accelerator at the International Finance Corporation (IFC), underscored the urgency of mobilizing capital for climate action. IFC has already committed $15 million to Pakistan and aims to raise an additional $20 billion globally for climate finance. A significant portion of this funding, Nyhan Jones revealed, is directed toward gender-focused initiatives, with 50% of the climate finance spent on improving the lives of women.
Tom Beloe, Director of the UNDP Sustainable Finance Hub, highlighted the importance of unlocking partnerships between development and finance institutions to address Pakistan’s climate and development challenges. According to Beloe, only 40 out of 138 global development targets are currently achievable for Pakistan, underscoring the need for collaboration to meet sustainable development goals (SDGs).
Fatima Khushnud, Executive Director of the Pakistan Environment Trust, concluded the panel discussion by stressing the importance of platforms like OICCI for fostering cross-industry collaborations. She emphasized that integrating economic and monetary returns from Environmental, Social, and Governance (ESG) activities is crucial to driving sustainable development in Pakistan.
As COP29 unfolds, the focus on climate finance and the role of the private sector continues to dominate discussions. The outcomes of these deliberations will be vital in shaping Pakistan’s climate strategy and attracting the necessary investment to safeguard the country’s future and contribute to global climate goals.
