ISLAMABAD, Dec 13 (Alliance News): Federal Minister for Climate Change and Environmental Coordination Dr Musadik Malik on Friday warned that environmental degradation is emerging as a serious systemic risk to the global financial system, calling for more accessible, predictable and equitable climate finance for vulnerable countries.
Speaking at a high-level Leadership Dialogue titled “The Bottom Line: Why Tackling Environmental Degradation Is Critical to the Future of the Global Financial System,” held on the sidelines of the United Nations Environment Assembly (UNEA) in Nairobi, the minister stressed that climate action must be treated as a shared global responsibility rather than the burden of a few developing nations.
The dialogue brought together global leaders, policymakers, financial regulators and experts to examine how governments are guiding private finance toward pathways that strengthen economic and financial stability while simultaneously addressing climate change, biodiversity loss, land degradation, pollution and waste management.
Participants emphasized the need for policy coherence, strong regulatory frameworks and whole-of-government approaches to create an enabling environment for sustainable and climate-resilient finance.
The discussions also focused on mobilising private capital for high-impact sectors and integrating environmental risks into financial decision-making processes.
Dr Malik noted that countries contributing the least to global greenhouse gas emissions were often the most exposed to the devastating impacts of climate change.
He stressed that without enhanced and fair climate finance, such countries risk losing hard-earned development gains.
The minister highlighted the importance of international cooperation and responsible private sector engagement to ensure that environmental sustainability and financial stability reinforce each other.
He added that aligning financial systems with environmental goals was essential for long-term global economic resilience.
Reaffirming Pakistan’s commitment to climate-resilient development, Dr Musadik Malik said the country would continue to support global efforts aimed at redirecting financial flows toward sustainable development and environmental protection.
