ISLAMABAD: The Participants of a virtual report launch on “green budgeting” on Friday made strong demand for initiating community-based solar solutions and that the State Bank should increase the lending threshold for wind projects from current 50 MWs.
They also demanded from federal and provincial governments that the allocation of fossil fuel-related projects like coal-fired power generation must be stopped with immediate effect and State Bank of Pakistan (SBP) should instruct all the commercial banks to adhere to the green banking guidelines while not funding any project which could potentially harm the environment.
The virtual report launch was organized by Indus Consortium here. Parliamentarians, officials of the concerned government departments, experts from the environmental protection organizations, lawyers, civil society representatives and members of Go Green Network attended the report launching.
While speaking on the occasion, member of national assembly’s standing committee on climate change, Romina Khurshid Alam said that the increased share of renewables for energy solutions at community and industrial needs with sustainable finance by public and private sectors will help to mitigate climate effects and reduce vulnerabilities of marginalized segments of the society.
“The green financing is important to promote solar solutions at household and community levels. Governments have prioritized financing in energy sector and many clean energy corridors have been identified in the country and new projects are in foundation phase,” she added.
While responding to the questions about climate finance, Romina Khurshid said that private finance was very important to achieve the net zero emission target set under Paris Climate agreement and national targets set by the government.
“Increased allocation in coal will harm the environment and climate in Pakistan to a great extent, therefore, the government should develop an effective mechanism which makes banks and IFIs accountable to adhere the “Green Banking guidelines” of the State Bank of Pakistan and other international commitments including equator principles and Environmental, Social and Governance (ESG) standards,” Romina emphasized.
Fair Finance Pakistan’s Asim Jaffery said that many environmental laws and protocols already exist in Pakistan but none is being adhering to in letter and spirit while the projects are being completed without or very poor Environmental Impacts Assessments ( EIAs). “A strong enforcement of laws, SOPs and protocols is required at government level, without which all environment protection efforts will be wasted,” Asim feared.
The participants of the report launch were apprised that Green budgeting is a practice which uses the tools of budgetary policy-making to help achieve ‘”green” objectives, i.e. those relating to the climate and environmental dimensions such as biodiversity, air quality and water. There is no one-size fits all approach to green budgeting. Any approach should build on a country’s existing public financial management (PFM) framework and thus be attuned to the strengths and limitations of the existing budgeting process. Green budgeting provides decision-makers with a clearer understanding of the overall environmental and climate impacts of budgeting choices. It brings evidence together in a systematic and coordinated manner to allow more informed decision-making on how to optimise revenue-raising and resource allocation in order to fulfil national and international commitments.
Chairman of Indus Consortium, Jamshiad Farid acknowledged that the current government has considerably increased climate related budget. He said that budget study reveals that climate change allocation has increased from Rs 412 million in 2018/19 to the tune of Rs 8075 million in the year 2019/20. “Public expenditure amounts to a significant proportion of economic activity; thus, government spending decisions have powerful social, environmental and economic implications for Pakistan. Along with regulations, the choice and design of tax and expenditure also shape business decisions and influence people’s choices to work, invest and consume. Public expenditure also plays a key role to play to mobilize the private finance necessary to tackle climate change and other environmental challenges,” Jamshaid elaborated.
While presenting the research study on green budgeting, Ghulam Nabi a research coordinator of PIDE’s center for environmental economics and climate change, said Prime Minister’s Coal Moratorium has been translated into action and the investment in coal power has reduced from Rs 28,141 million in 2018/19 and 2019/20 respectively while allocation for wind energy has increased by Rs 1000 million. He reiterated that government should continue to allocate more resources for renewable energy along community-based solutions.