Planning Ministry Prepares a Framework for Alternate Financing of Climate Responsive Investment.

Planning Ministry Prepares a Framework for Alternate Financing of Climate Responsive Investment.

Islamabad: In a meeting held today to discuss Planning Ministry’s developing framework for financing climate projects, Minister Ahsan Iqbal directed the ministry’s climate change section to develop an asset register of climate and disaster preparedness and response programs that can be funded through alternate financing sources. Alternate sources of funding like concessional climate funds, green fixed securities, blended finance and carbon finance can be useful in diversifying sources of funding and reducing the dependence on the national exchequer.

The minister also stated that the Sindh coastal highway, which faces the highest vulnerability to sea intrusion, should follow a climate resilient construction model so that it can be considered eligible for climate finance.

“Climate change must be used for economic transformation,” the minister asserted. As briefed by Member Climate Change, the ministry is in the process of preparing draft reform measures for resilience and sustainability facility of the IMF. The reform measures will ensure debt sustainability, drive exports in emerging green value chains and build economic resilience to climatic shocks.

It was discussed during the meeting that the ministry will also develop a comprehensive framework for integrating financial instruments, including bonds, guarantees and blended finance models into national and sub national development planning.