An Assessment of Options to Open Flows of Finance to Climate Projects in Pakistan
British High Commission (BHC), Islamabad contracted ASI to conduct a review of global, regional and national evidence on climate finance to inform BHC’s design of a targeted programme, and engage meaningfully with the Pakistan government on the issue.
The Project/what we are doing about this challenge:
The study undertook a review of the climate finance landscape at national and regional level on climate finance, whilst drawing on examples from around the globe. It informed a range of climate finance initiatives that the BHC is considering in Pakistan.
In particular, the study informed the design of the Climate Investment Fund Pakistan (CIFPAK), which is intended to be a multi-year programme designed to:
- Invest in technology and infrastructure critical for emissions reduction and climate adaptation, and to attract international and domestic co-investments towards them; and
- Implement a project development facility to establish a pipeline of investment-ready and scalable climate adaptation and mitigation projects.
What the project has achieved so far:
The review examined the key constraints to public and private climate finance in South Asia and in Pakistan for mitigation and adaptation; the key approaches and instruments for mobilising climate finance globally, including via blended finance mechanisms; the global institutional architecture for public climate finance; the scale of climate finance required by Pakistan; the sectors in which investment is needed; and the barriers to investment. The review identified a series of successful donor and development finance institution case studies in climate finance, and provided recommendations on the investment, programmatic and advisory options by which the UK to support Pakistan’s climate finance agenda. The findings were presented to FCDO colleagues and other donors, who could leverage insights from the study.