Climate justice – possibilities for Pakistan

CLIMATE JUSTICE – POSSIBILITIES FOR PAKISTAN 

The COP27 establishment of a fund to compensate for damage and losses has been hailed as a significant accomplishment in Pakistan's foreign policy.

Losses and damages caused by climate change in developing nations will be covered by this fund. Pakistan expressed the hope that the operationalization of the fund would lessen the disparities in the architecture of climate finance.

Pakistan promises to constructively participate in international climate change negotiations and policymaking. Bilawal Bhutto Zardari, the aspiring foreign minister of Pakistan, has stated that the inclusion of the cost and damage fund on the agenda of COP 27 is cause for optimism.

The question, "Is the world ready to compensate Pakistan over a man-made Crisis?" arises here amid all of the hopes for equitable treatment in response to the existential threat posed by climate change.

Despite being one of the countries most vulnerable to climate change, Pakistan has advocated for climate justice for all G77 members. Between coming up with an idea and putting it into action as a policy, Pakistan has a long way to go.

The practical possibilities of climate justice are constrained by a number of constraints, making the process lengthy and tortuous. Before we talk about restrictions, we need to know what Pakistan expects from climate justice. Climate Justice's potential characteristics include: Debt relief, time-bound financing for the energy transition, reduction of North American growth, and emission reductions

When climate change affects a developing nation with a lot of debt, like Pakistan, debt relief becomes an important part of the policy response to meet its urgent needs. It is difficult for the economy to recover due to loan repayment and rebuilding costs.

In 2020, the World Bank and IMF launched a Debt Service Suspension Initiative (DSSI) to enable nations to utilize financial resources to combat the COVID-19 pandemic. Extreme climate events were not covered by this initiative.

In order to deal with climate shocks, Pakistan needs financial flexibility at this point, and debt relief is necessary to reduce its deficit.

The war between Russia and Ukraine and the ensuing deterioration of the international economy is one of the biggest obstacles to any international effort to reduce debt.

The Russia-Ukraine conflict is causing recession and high inflation in the world's leading economies, according to the Organization for Economic Cooperation and Development (OECD). It has reduced growth more than anticipated.

Additionally, the OECD predicted that major central banks' policy rates would increase by at least 4% in 2023, stating that central banks must raise rates to combat inflation.

Despite the World Bank's warning that developing nations' economies would suffer most from such a rate increase, The geopolitical rivalry between western and eastern creditors is another constraint in this regard.

The Paris Club is a group of wealthy Western nations that are creditors. Their greatest concern is that debt relief would benefit Chinese businesses, which have funded infrastructure development in developing nations for a decade.

China, on the other hand, expresses concern that the money would go to American-dominated financial institutions like the IMF and World Bank if it continues to reduce principal and interest payments. The Debt Service Suspension Initiative (DSSI)'s initial debt relief efforts have been hindered by these fears on both sides.

In an effort to avert the devastating effects of climate change, the International Energy Agency (IEA) has urged nations all over the world to accelerate their transition to clean energy.

Energy is very important for reducing poverty, improving health care and education, building infrastructure and industries, ensuring food security, and dealing with extreme climate events.

One of the world's biggest problems right now is figuring out how to provide these essentials in developing countries while avoiding high carbon emissions. For Pakistan and other developing nations' sustainable development, the transition to clean energy is essential.

However, the crisis in public health, which also led to a recession in the global economy, has reduced the strength of investment in the energy sector. There is less financial room to support economic activities everywhere.

The pandemic has increased the pressure on major investors and financiers, effectively reversing progress toward expanding access to clean energy in developing nations. Carbon dioxide (CO2) emissions have historically been caused by economic activities in highly industrialized nations, or the Global North.

However, as a result of these emissions, developing nations, or the Global South, will bear the brunt of the effects of climate change.

Developing nations generally agree that the North should take the lead in efforts to reduce carbon emissions and shoulder more responsibility for assisting the South by providing financing for infrastructure, clean energy, and other new technologies. The United States alone accounts for 25% of all emissions, the highest percentage in the world. Additionally, it contributes significantly to climate negotiations and global policymaking.

The United States has enacted a climate law that provides incentives worth approximately $400 billion to finance the transition to green energy.

Subsidies for the production of electric vehicles and promotion of renewable energy and battery industries are also included. Macron, the president of France, has expressed concern that such policies will result in Western fragmentation.

Through massive subsidies to American businesses, it will disrupt market competition and harm European industries. He stated, "Maybe this law will resolve your issues, but it will exacerbate mine."

He has asked the EU to create a "Buy European Act," which would provide domestic businesses with similar subsidies. As a result, the west's economic interests make the switch to green energy very difficult.

Pakistan's leadership of the agenda at COP27 was a historic moment. It urged developing nations to band together to address climate justice.

The officials from Pakistan stressed how important it is to address issues related to the climate or else they will continue to suffer from the effects of climate change.

The strong climate change action that Pakistan's foreign policy takes is admirable. Pakistan also requires a comprehensive strategy that considers climate change from all perspectives, from the micro to the macro.

It should also try to address positive aspects of climate security, such as the fact that when something is securitized, it is considered a security issue. Policymakers in Pakistan would be able to view environmental issues on three levels—local, international, and structural—through the securitization.