CCA 2024 Update: CLIMATE FINANCING AND POLICY RECOMMENDATIONS

The UN Common Country Analysis (CCA) 2024 Update provides a comprehensive examination of Pakistan’s climate financing needs, challenges, and opportunities. With climate change posing an existential threat, the report highlights a staggering $348 billion financing gap required for mitigation and adaptation efforts by 2030.

Despite being among the top 10 countries most vulnerable to climate change, Pakistan lags behind in international climate finance accessibility, with domestic private sector contributions remaining particularly low. The report identifies key barriers, including limited institutional capacity, slow disbursement rates, and reliance on debt-based climate finance, which further strain the country’s economic resilience.

To address these gaps, the policy brief outlines strategic recommendations such as:

·       Developing a mid-term climate financing strategy,

·       Expanding domestic and international financing sources,

·       Enhancing governance frameworks, and

·       Strengthening disaster risk financing mechanisms.

With climate inaction costs projected to reach $1.2 trillion by 2050, urgent and coordinated efforts are required from policymakers, financial institutions, and development partners to drive Pakistan’s transition toward sustainable and climate-resilient growth.