AS the world surpasses the $2 trillion mark in climate finance in 2024, a historic milestone that should inspire hope, countries like ours find little reason to celebrate.

While capital races toward clean energy and industrial decarbonisation, Pakistan, a nation acutely vulnerable to climate shocks, is once again left clutching pledges, not projects. The gap is no longer just financial; it is institutional, structural, and strategic.

The latest Global Landscape of Climate Finance report is a wake-up call. Climate finance reached $1.9tr in 2023 and likely crossed $2tr in 2024. For the first time, private finance led the way exceeding $1tr driven by electric vehicles, solar, and energy efficiency. Mitigation continues to dominate, attracting over 90 per cent of total flows. Adaptation remains sidelined with just $65 billion globally.

But while capital is flowing, it is not flowing everywhere. In 2023, only $196bn reached emerging markets and developing economies. Just 22pc came from private sources. The rest was public finance in the form of grants, concessional loans, and aid. Even within that small slice, Pakistan is barely visible.

Despite being among the top 5 most climate-vulnerable countries, Pakistan’s track record in attracting meaningful climate finance is underwhelming. Our domestic investment in green projects remains negligible. Climate finance flows into Pakistan in 2021 were estimated around $4bn, with over 84pc sourced from external partners. Our own private sector accounted for less than 5pc. Meanwhile, we need $30–40bn each year just to meet our modest climate goals.

And that’s just the beginning. Pakistan will likely face a climate investment gap of over $340bn by 2030. We are nowhere near ready to........

© Dawn Business