BAKU/ISLAMABAD – Pakistani Prime Minister Shehbaz Sharif has urged an overhaul of global climate financing, saying debt should not become the new normal for addressing climate change in vulnerable nations.
Sharing his views at the Climate Finance Round Table Conference, the premier called for more effective financial solutions to help developing countries meet their climate goals. He also warned that relying on loans for climate financing only exacerbates the debt burdens of nations, pushing them into what he termed “debt traps” or “death traps.”
Sharif was of view that world leaders need to shift focus toward non-debt financing options to enable countries to fund climate adaptation and mitigation projects. He pointed out significant financial gap that continues to hinder the progress of developing nations in addressing climate change, noting that developing countries will need an estimated $6.8 trillion by 2030 to fulfill even half of their current Nationally Determined Contributions (NDCs).
He also requested donor countries to honor their long-standing commitments, including pledge to contribute 4.7% of their gross national product (GNP) to climate finance and to fully utilize existing climate funds.
PM further highlighted slow progress on $100 billion annual climate financing pledge made a decade ago at COP15. According to OECD reports, the total amount pledged has reached just $160 billion, far short of the target. He also shared Pakistan’s firsthand experience with the devastating effects of climate change.
He recalled how 2022 floods forced Pakistan to repurpose all its development and climate funds for immediate relief and recovery efforts. With its increasing vulnerability to extreme weather events, Pakistan remains one of the world’s most climate-vulnerable nations.
Prime Minister also called for urgent reforms in the international financial system to ensure that no country is left behind in the global fight against climate change. He reiterated that the current system needs to be more inclusive and responsive to the needs of developing nations, particularly those most affected by the climate crisis.
With COP29 underway, world leaders and policymakers continue to discuss ways to accelerate global climate action and address the financial barriers preventing developing countries from effectively tackling the climate emergency.
