First provincial strategy for climate finance launched

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Peshawar, Khyber Pakhtunkhwa, 9 July 2018 – Today the Government of Khyber Pakhtunkhwa (KP) in partnership with UNDP, announced the country’s first provincial strategy for financing climate action. The Climate Change Financing Framework (CCFF), which serves as a road map for integrating climate change in public financial and economic management, represents one of the first government endorsed policies adopted at state-level in the world. Today’s launch in Peshawar follows the adoption of the country’s federal level CCFF in October 2017.

Pakistan consistently ranks in the top ten most at-risk countries to the long-term impacts of climate change. And within Pakistan, KP is amongst the most highly vulnerable regions. KP residents have already suffered from the negative impacts of flash floods and more volatile and extreme temperature ranges. At the same time, the province is investing heavily in afforestation and watershed restoration as well as climate-friendly infrastructure, such as public transportation services.

The climate financing framework will support provincial Government and other relevant stakeholders such as members of the Provincial Assembly to respond to climate change more systematically. It lays out new guidelines for linking climate action priorities and strategies to budgeting systems and processes, outlining clear roles and responsibilities for key departments. The CCFF also speaks to a need for new mechanisms for ensuring more transparent use of funds. These improvements are expected to render future development programmes and budgets of various line departments more effective in light of the impacts of climate change.

“The CCFF will help us target resources for developing climate smart and resilient communities throughout the province,” said Shakeel Qadir Khan, Secretary Department of Finance. “It will advance more integrated planning and budgeting responses in light of the climate challenges KP is facing and will a great benefit to improve coordination on mobilizing climate finance to meet these challenges. We are very proud to be the first province of Pakistan to adopt our own CCFF, and believe states around the world can learn from our experience“, he added.

“UNDP and KP Government have been longstanding partners to support a future development paradigm in the province that is both peaceful and sustainable. The implementation phase of the country’s first ever Green Climate Fund supported project, which addresses local risks from glacial outburst floods, was just recently launched. Now the roll out of this CCFF serves as yet another big step forward in building preparedness to better access and manage resources to combat climate change,” said Ignacio Artaza, Country Director, UNDP.

The Khyber Pakhtunkhwa CCFF was developed through UNDP’s Governance of Climate Change Finance Programme, which has been supporting the Government of Pakistan since 2015 with the support of the UK Government.

The launch event was attended by representatives of KP Government, development partners, and federal ministries including the Ministry of Climate Change.

The full report can be viewed here:

Notes to editors:

Domestic and international resources to respond to and mitigate climate challenges are increasing. The Climate Policy Initiative’s Global Climate Finance Landscape report estimates that from 2015-2016 public investments for climate change in Asia-Pacific region reached USD 154 billion. Of this amount, 79% of finance was spent in the same country in which it was originated.

As these resources scale up, it is critical that governments have integrated whole-of-society strategies that ensure these resources are used efficiently and effectively to reach those who need them most. To achieve this, tailored Climate Change Financing Frameworks (CCFFs) can be a tool to outline policies and processes to better manage, mobilize and target climate finance. UNDP has assisted the governments of Bangladesh, Cambodia, Nepal, Indonesia to create CCFFs, in addition to Pakistan.

UNDP’s Governance of Climate Change Finance (GCCF) programme works with governments and civil society throughout the Asia-Pacific region. GCCF’s diverse team of specialists have a breadth of experience in public financial management, governance and climate change along with a history of working effectively with Ministries of Finance. The team provides tools and advice to ensure climate funds are mobilized, managed and targeted more effectively for the benefit of the poor, marginalised and vulnerable

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Fatimah Inayet, Communications Analyst, UNDP Pakistan