Pakistan has initiated work on a number of green financing instruments, buoyed by widespread global investor interest in the country’s first green bond floated in the international market last week.
The development follows the growing concern in Pakistan that it’s one of the most vulnerable countries in the world to climate change, and has been hit hard by extreme weather events including devastating floods.
Prime Minister Imran Khan on Thursday said 10 most vulnerable countries in the world, including Pakistan, were at high risk of climate change due to green gases’ emission by developed states of the world.
“Pakistan is contributing less than one per cent to global carbon emissions, yet we are more vulnerable than Bangladesh … due to the melting of our glaciers. It is not our fault. There are giants that contribute to carbon emissions but countries like us face the consequences,” the prime minister said while addressing a ceremony on “green financing innovations” organised by the Ministry of Climate Change in connection with World Environment Day.
Wapda on May 27 launched Pakistan’s first-ever US dollar-denominated green Eurobonds, seeking $500 million for environment friendly projects to enhance the clean energy share in the country’s power generation mix, which relies heavily on fossil fuels — particularly coal.
“The green bond was six times oversubscribed … which shows there is a global appetite for a country that has economic stability and as well as green credibility,” Climate Change Minister Malik Amin Aslam told Reuters.
Pakistan is the host country of the UN’s annual World Environment Day on June 5. It is now looking to become a major player in the global green financing market.
Mr Aslam said Pakistan plans to further tap the green bond avenue for building and transport financing.
PM Khan said speedy glacier melting in Pakistan was a major threat, adding that his government had launched several green initiatives including Ten Billion Tree Tsunami project to mitigate the effects of global warming.
Country Director of World Bank in Pakistan Najy Benhassine presented to the prime minister the report on blue carbon, which for the first time gives an economic value to Pakistan’s unvalued marine wealth, including mangroves and sea grasses.
2021, Dawn