Pakistan Urged to Reform Climate Finance Policy to Access New Forms of Lending and Investment

Pakistan needs to reform its policymaking to better access climate finance, moving away from outdated assumptions of grants and aid.

Four key myths have constrained Pakistan's ability to access climate finance expectations of aid due to vulnerability, invoking "polluter pays," relying on developed countries' responsibilities, and writing grant proposals.

Climate finance globally has transformed to focus on lending, investments, and private sector leveraging rather than grants.

Pakistan missed opportunities to understand the changing climate finance landscape by not engaging with mechanisms like the Climate Investment Funds.

Rather than outsourcing its thinking, Pakistan needs to deliberately develop its own climate finance strategy and capacity.