Key points
- Climate-induced disasters pose an existential challenge for many ECO countries: Shehbaz Sharif
- Asian countries require approximately $1.1 trillion annually to meet climate targets: IESR
- Sharif says trade and investment key to achieving common goals, boosting regional connectivity
ISLAMABAD: At the 17th Economic Cooperation Organisation (ECO) Summit, held in Khankendi, Azerbaijan, Pakistan’s Prime Minister Shehbaz Sharif called for the establishment of low-emission corridors and a regional carbon market.
The proposal aimed to mobilise climate finance and enhance environmental cooperation in a region grappling with worsening climate conditions and geopolitical tensions.
Collective action on climate
Highlighting the existential threat posed by climate change to the region, PM Shehbaz urged ECO countries to take joint action. He emphasised that deeper collaboration is critical for building resilience and achieving sustainable development, particularly as environmental and political uncertainties continue to grow.
“Pakistan remains among the top 10 countries most vulnerable to climate change,” he reminded attendees, citing the catastrophic 2022 floods, which displaced over 33 million Pakistanis.
Why is it important?
PM Shehbaz’s call aligns with broader regional concerns about the climate finance gap.
According to the Institute for Essential Services Reform (IESR), Asian countries require approximately USD 1.1 trillion annually to meet climate targets, but current investments reach only about $333 billion. This leaves an alarming shortfall of USD 815 billion every year.
In this context, carbon markets are being promoted as a viable mechanism to help close this gap. By putting a price on carbon emissions, these markets can channel private investment into climate action. Regional examples such as Singapore’s carbon tax, Japan’s Joint Crediting Mechanism, and China’s vast Emissions Trading System highlight the potential for scalable solutions that Pakistan and ECO members could adopt or adapt.
On water security and regional peace
In addition to environmental concerns, PM Shehbaz sharply criticised India’s recent aggression, accusing it of using water as a geopolitical weapon by attempting to suspend the Indus Water Treaty, a key bilateral agreement brokered by the World Bank.
“Unprovoked and reckless”
Labelling India’s actions as “unprovoked and reckless,” he referred to missile strikes on Pakistani cities following unsubstantiated claims by New Delhi regarding an attack in Indian-occupied Kashmir’s Pahalgam town.
Pakistan responded by downing five Indian jets and launching retaliatory strikes, leading to a US-brokered ceasefire on May 10.
He also condemned India’s rejection of a recent Permanent Court of Arbitration ruling, which clarified that India cannot unilaterally suspend the Indus Water Treaty.
“This illegal attempt to defy international law must be rejected with contempt,” the premier stated.
Pakistan’s climate commitments
While facing regional and environmental challenges, Pakistan has made some strides in its climate policy.
In its revised Nationally Determined Contribution (NDC) submitted in 2021, Pakistan committed to a 15 per cent reduction in emissions by 2030, compared to 2015 levels. It also aims to source 60 per cent of its energy from renewables by that year, a target requiring an estimated $100 billion in funding.
Pakistan currently ranks 31st in the Climate Change Performance Index (CCPI), with high ratings in GHG emissions and energy use, but low in climate policy and very low in renewable energy adoption.
Despite these challenges, the country’s 2012 National Climate Change Policy remains a solid framework for addressing vulnerabilities in water, agriculture, and biodiversity.
