Finance plays a crucial role in eco-friendly development for Pakistan and China. “Obviously, CPEC has supported Pakistan in this field through investment and technical assistance. In the future, China should constantly leverage its technological advantages in low-carbon production and renewable energy, including solar, wind and so on, to enhance Pakistan’s capacity to cope with climate change,” Green BRI reported this week at a conference.
On June 22th, the United Nations Development Program (UNPD) and Green BRI Center, Central University of Finance and Economics, China, jointly held a conference in Beijing. On that occasion, the Green BRI Center reported the situation of green development in Pakistan.
According to the report, due to its high dependence on agriculture, Pakistan is vulnerable to climate change. “Caused by its geographical location, economic structure, social development and other factors, Pakistan is ranked as the fifth highest risk country in the Global Climate Risk Index,” Green BRI Center said.
The institution also praised the Pakistani government and people for their efforts and attention on coping with climate change. Listing a series of policies Pakistan implemented, the report believes that Pakistan has integrated its response to climate change with national development strategy and introduced positive policies and acts which laid a good foundation for eco-friendly development in Pakistan.
Thanks to SBP’s incentive policies, a green financial market has taken shape in Pakistan. Green BRI Center disclosed that climate finance in the nation reached $1.285 billion, and accumulated into $5.442billion since 2015.
At present, Pakistan is heavily dependent on international financial support, including loans, foreign investment, international grants and so on. The nation has established bilateral or multilateral cooperative relations with China, Germany, France and other countries. From 2013 to 2020, Pakistan was the country with the largest total investment of BRI energy investment.
At the end of the report, it stated that CPEC has supported Pakistan in this field through investment and technical assistance. In the future, China should constantly leverage its technological advantages in low-carbon production and renewable energy, including solar, wind and so on, to enhance Pakistan’s capacity to cope with climate change.
To be specific, China and Pakistan can cooperate on setting classification standards for national green bonds. Meanwhile, China will provide technical support and experience in implementing green bond standards to Pakistan, and jointly explore how to combine Islamic Sukuk bonds with green bonds.
Government departments, financial institutions, enterprises, international organizations and academic institutions are invited to participate in the event. The event shared the theoretical and practical experience of sustainable finance and explored how to achieve global sustainable development goals through policy, market and international cooperation efforts.
Source: China Economic Net