Friday, November 8, 2024
Pakistan, in partnership with the PBA, InfraZamin SBP and Private Infrastructure Development Group (PIDG), organized a seminar titled “Enabling Green Financing and Green Bonds via Credit Enhancement Solutions.” The event convened senior leaders from the SBP, Ministry of Finance, and top executives, including CEOs and investment banking heads from major commercial banks, to explore the role of green financing—especially green bonds—in driving sustainable economic growth with private sector support.
Jameel Ahmad, Governor – SBP, highlighted the regulator’s role in fostering climate resilience through direct and indirect measures. Under direct measures, SBP’s renewable energy refinancing schemes disbursed Rs. 94.7 billion by June 2024, funding over 4,500 projects with a total energy capacity of 2,061 MW. Indirect measures include issuing ‘Guidelines on Green Banking’ to help regulated entities manage environmental risks as well as collaborating with the World Bank to develop a Green Taxonomy for standardising green and transitional activities.
The presentations shared by InfraZamin and PIDG speakers during the event underscored the importance of advancing green finance in Pakistan through structured frameworks and strategic initiatives.
Drawing on lessons from other emerging markets, the speakers explored ways to incentivise green financing, reduce associated costs, and derisk green projects to encourage
private sector participation. The discussions also emphasized the need for capacity-building to support the growth of green finance and to navigate the ever-evolving landscape of sustainable investment.
Representing the sector’s perspective on the initiative, Muneer Kamal, CEO and Secretary General – PBA, said, “As a nation on the frontlines of climate vulnerability, Pakistan needs more than just incremental changes. Sustainable finance is not merely an option—it’s a responsibility we, as an industry, must embrace. PBA stands committed to supporting green financing solutions and driving investments toward a low-carbon economy. Multistakeholder partnerships like these are critical for transforming the financial sector, ensuring a future where economic progress aligns seamlessly with environmental stewardship.”