Daily Times

It is said that ‘colors are the smiles of nature’ and we have been taught the various principles of color psychology from a young age. Colors are associated with human emotions such as red is associated with anger, blue is calm, yellow is happy and green has always been synonymous with nature, abundance, and growth. Unfortunately, we are teaching our next generation a new form of color psychology in which red depicts an unhealthy Air Quality Index (AQI) level, purple stands for very unhealthy AQI, maroon is hazardous AQI, and Green has been combined with Lockdown.

Our children must remember these color associations before planning any outdoor activity. The Punjab government has declared Smog a ‘Calamity’ and a “Green Lockdown” has been imposed in selected smog hotspots throughout Lahore, instituting time restrictions on various businesses including barbecue restaurants and marriage halls. Commercial generators and Qingqi motorcycle rickshaws have been restricted in smog hotspots. Furthermore, a one-week closure of schools for primary classes in Lahore has been announced due to severe smog conditions.

Unfortunately, the government has yet again taken a somewhat myopic viewpoint in handling this solution by developing symptom-based remedies instead of rooting out the problems. The ‘Green Lockdown’ has resulted in traffic jams throughout Lahore as school and office timings have become the same. This has further intensified air and noise pollution and increased citizen’s fuel consumption as they are stuck in traffic jams for hours.

We should try to understand that just putting the term ‘Green’ with any initiative or ideology does not make it strategically correct.

We should try to understand that just putting the term ‘Green’ with any initiative or ideology does not make it strategically correct. Correct implementation of an ideology is rooted in accurately comprehending that concept. Green initiatives are beneficial for society as long as they do not carry a social cost. The ideology of Sustainability encompasses the simultaneous manifestation of environmental, social, and economic sustainability. The government should focus on sustainable solutions to this smog problem that would result in decreasing environmental degradation, improving social well-being, and enhancing economic gains for all concerned stakeholders.

Let us understand this by a simple example; one of the major causes of smog was the brick kilns operating in Punjab. The Green Solution could have been shutting down all the polluting brick kilns to reduce their environmental burden. However, this initiative carried a significant social cost as the livelihood of many people is connected with brick kilns.

The Sustainable Solution was the conversion of traditional brick kilns into Zigzag technology, which results in less fuel consumption, lower emissions of pollutants, and a more consistent and higher-quality product. Thus, delivering environmental, social, and economic gains simultaneously. The Bank of Punjab, in collaboration with the Government of Punjab, launched the sustainable financing scheme in which low-interest rate loans were for conversion of traditional brick kilns to Zigzag technology.

Pakistan can only escape this suffocating smog through long-term, synergistic policymaking based on the ideology of sustainable development. The answer is not shutting down the businesses or livelihoods of people who are already struggling to make ends meet or asking business owners not to use generators when the country is facing an electricity crisis. The solution is providing Sustainable Financing solutions to convert the environmentally hazardous business activities into green businesses.

The banking industry can play an important role in this regard by launching sustainable finance schemes for various sectors intricately connected with smog and other climate change threats. Sustainable financing schemes can be launched for e-vehicles, climate-smart agriculture, green manufacturing, green SMEs, eco-tourism, and green construction. Under the ideology of Green Banking and ESG, the banking industry can ensure sustainable transformation within various economic sectors of Pakistan.

Right now, climate action and the economy are the two most important and entwined challenges for Pakistan. The country is encountering significant challenges stemming from both a macroeconomic crisis and climate change, which threaten its goals for sustainable growth and poverty reduction.

Pakistan’s considerable vulnerability to climate change intensifies other risks, complicating its efforts in social and economic development. There is an urgent demand for sustainable financing in Pakistan to address these climate-related threats and to facilitate a transition towards Net Zero.

The World Bank has projected that the total investment necessary for a comprehensive approach to Pakistan’s climate challenges from 2023 to 2030 is around US$ 348 billion. This total comprises US$ 152 billion (44 percent) to enhance adaptation and resilience, alongside US$ 196 billion (56 percent) intended for de-carbonization or mitigation strategies. This is the potential for sustainable financing existing in the various economic sectors of Pakistan.

For a developing nation such as Pakistan, which faces economic challenges, sustainable finance serves as a crucial resource that can bolster its Sustainable Developmental Goals while simultaneously mitigating its susceptibility to and impact on climate change. Regulators, policymakers and concerned stakeholders should focus on integrating Environmental, Social, and Governance (ESG) considerations into companies’ governance structures, along with banking, lending, and investment activities.

Specific goals should be developed to include the promotion of sustainable lending practices, the reduction of carbon emissions, and the fortification of resilience within corporate operations. Additionally, the government support the advancement of green products and projects by pinpointing and implementing innovative approaches to increase access to sustainable finance, while urging companies to pursue sustainable initiatives. Lastly, the risk management frameworks should be strengthened by analyzing climate-related risks and opportunities in all investment and operational contexts.

Let us all work together to paint a bright, beautiful, and Green future for our children. A future in which Green is not associated with Lockdown and red is not associated with polluted air. Let us all work together to keep Pakistan Green.

The writers Dr Syed Asim Ali Bukhari is working as SVP/Head – ESG in The Bank of Punjab and Dr Syeda Nazish Zahra Bukhari is working as Assistant Professor in University of the Punjab.