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UK pledges £108m for climate technologies in Pakistan

The funding, announced by Hamish Falconer, during his visit to Pakistan, will be delivered in partnership with the International Finance Corporation.

UK pledges £108m for climate technologies in Pakistan
EasternEye
By EasternEyeNov 22, 2024

THE UK government has pledged £108 million to support climate technologies and private sector initiatives in Pakistan.

The investment aims to help local businesses develop solutions to combat climate change while creating over 100,000 jobs.

The funding, announced by Hamish Falconer, minister for the Middle East, during his visit to Pakistan, will be delivered in partnership with the International Finance Corporation (IFC). It will serve as the largest single-country blended finance facility, leveraging private sector contributions five to six times the UK’s investment.

“The UK and Pakistan are committed to tackling tomorrow’s threats today. That’s why we’re investing in the expertise needed and supporting local businesses alongside the Government of Pakistan,” Falconer said at the launch event in Islamabad.

The initiative follows the British High Commission Pakistan’s Cost of Inaction Report, which estimates that climate inaction could cost Pakistan over $1 trillion in the next 25 years. The programme, part of the UK’s Climate Investment Fund Pakistan (CIFPAK), aims to mobilise private sector financing for climate adaptation and resilience projects.

During his visit, Falconer also met Pakistan's home minister, Mohsin Naqvi, and foreign minister, Ishaq Dar, to discuss shared challenges, including climate change, regional stability, and democracy. At Chakwal Textile Mill, the minister observed how UK funding has facilitated solar panel installations, reducing emissions and energy costs.

IFC country manager, Zeeshan Sheikh, highlighted the significance of the initiative, saying, “This facility reflects IFC’s commitment to supporting Pakistan’s climate resilience and adaptation efforts. We are pleased to partner with the UK government on an innovative facility that will help crowd-in much-needed private investment.”

The programme will initially run for seven years, with any profits reinvested to finance additional projects. The collaboration underscores the UK's commitment to addressing global climate challenges while fostering economic and democratic ties with Pakistan.

climate technologies - pakistan - uk

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