Finance Minister urges innovative climate solutions at COP29 to support vulnerable communities

14th November 2024

Islamabad:

Federal Minister for Finance, Muhammad Aurangzeb emphasized the urgent need for innovative climate adaptation solutions to support communities most affected by climate change, who contribute the least to global emissions.
He made these remarks at the event “Acumen’s Climate Action Fund for Pakistan,” held at the Pakistan Pavilion during the COP29 summit in Baku on Thursday.

Highlighting Pakistan’s achievements, the Finance Minister noted the creation of the country’s first fund dedicated to agriculture, with a particular focus on climate resilience.

Romina Khursheed Alam, Coordinator to the Prime Minister on Climate Change, lauded the Acumen Climate Action Fund for Pakistan as a significant milestone in enhancing the country’s agricultural resilience.

She explained that the fund focuses on providing patient capital to agribusinesses, especially smallholder farmers who make up 90% of Pakistan’s agricultural workforce. Given Pakistan’s vulnerability to climate change—expected to reduce agricultural productivity by 8-10% by 2040—this initiative is critical to ensuring food security and promoting sustainable farming practices in the face of growing climate challenges, she stated.

The Finance Minister added, “The Acumen Climate Action for Pakistan (ACAP) Fund will be the country’s first climate-focused private sector fund.” He highlighted that the fund will target businesses that enhance climate resilience in agriculture, particularly benefiting small farmers and impacting up to 13.1 million farmer lives. The Green Climate Fund is marking the largest private sector commitment for Pakistan to date.
The Finance Minister further noted that the ACAP Fund will create a transformative climate impact in Pakistan, leveraging private capital from top-tier investors and attracting foreign direct investment (FDI) to strengthen local businesses.
“ACAP is not only Pakistan’s first single-country fund but also one of the world’s first funds focused on climate adaptation. It has established strong ties with leading investors to bring powerful voices to the table,” he concluded.

Representatives from Acumen, the Green Climate Fund, and USAID also spoke at the event.
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