KTrade Climate Change Report: Pakistan needs capital, policy, technology and strategy

COP27

KTrade Climate Change Report: Pakistan needs capital, policy, technology and strategy

By KN

KARACHI:  Pakistan needs capital, policy, technology and strategy The tragedy of the floods has underlined the risk from changes in climate. Such natural disasters are likely to reoccur and besides floods, climate change threatens to increase spells of drought and lead to extreme temperatures. These changes would impact every aspect of our lives. For example, not only will it change the availability of water, but it will also change when it is available and even what kind of water is available. Ahead of COP27 in Egypt, KASB KTrade Securities published a detailed report titled, Climate Change in Pakistan, which is a detailed analysis of the challenges facing Pakistan and potential policies to deal with them. On the 3rd of November 2022, the company held a Seminar to share the report and get expert feedback on the subject. The expert speakers included Dr. Syed Mahmood Nasir (former Inspector General of Forests), Mr. Nasir Ali Shah Bukhari of Sindhi Forests, Mr. Ahmad Shayan of Engro Foundation, and Mr. Mustafa Hyder Syed, Executive Director of the Pakistan-China Institute. According to the data quoted in KASB KTrade’s report, global temperature has risen by 1.2°F (0.7°C) during the period 1986–2016. This increase in global temperature is not uniform. Unfortunately, Pakistan is one of the regions which is suffering more. Pakistan’s average annual mean temperature was 19.37 °C in 1950 and 21.87 °C in 2018. A major impact of this increase will be on the agricultural sector and on energy requirements. The temperature rises in Pakistan’s agricultural region of 0.5°C– 2°C could lead to around an 8%–10% loss in agricultural yields. The changes in weather patterns and the changes in the quality of water will require changes in the kind of crop which can be grown and adjustments to when and where can the crop be grown. Similarly, the demand for energy for cooling during the summer will also increase. KASB KTrade report suggests that dealing with the challenges of climate change requires; 1) Capital, 2) Policy 3) Knowledge and technology and 4) Execution of a coordinated strategy. Climate change is a global issue and the primary contributors to carbon emissions and greenhouse gases are the developed countries. This has been recognized and accepted in the Paris Agreement, signed by 195 countries. However, the implementation of the policy agreement has been slow and behind the timeline. KTrade report recommends that Pakistan should try to access the pools of capital available under the Paris Agreement to fund the climate change initiatives. China has made major investments in climate and agricultural technology and the government should seek to strengthen the technical knowledge transfer from China in this area. Chinese policies on areas such as solar energy and electric vehicle production have made China a leader in these areas.

Pakistan could also benefit from understanding the Chinese policy framework on dealing with these challenges. Pakistan needs an effective technology-based monitoring system which can pick up early signs of natural disasters such as droughts and floods and can respond to them. The speakers appreciated the report and highlighted the need for the private sector to contribute to the knowledge base on this issue. Dr. Mahmood mentioned that Pakistan still lacks a coherent policy framework on carbon credits and developing a market for voluntary carbon trading. Mr. Bukhari highlighted that Pakistan should move towards crops and plants which are less water-intensive, and which can grow on saline water. Mr. Shayan presented how Engro is leading multiple initiates across the organization to positively contribute to this area.