Federal Minister for Climate Change and Environmental Coordination Dr Musadik Malik has stressed that environmental degradation poses systemic risks to the global financial system and called for more accessible 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” on the sidelines of the United Nations Environment Assembly (UNEA) in Nairobi, the minister said that climate action must be treated as a shared global responsibility.
The dialogue brought together global leaders, policymakers, financial regulators and experts to discuss how governments are steering private finance towards pathways that strengthen economic and financial stability while addressing climate change, biodiversity loss, land degradation, pollution and waste management.
Participants highlighted the importance of policy coherence, effective regulatory frameworks and whole-of-government approaches to create enabling conditions for sustainable finance.
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 emissions were among those facing the most severe impacts of climate change.
He emphasised the need for enhanced climate finance to help such countries build resilience and protect development gains.
The minister underscored the role of international cooperation and responsible private sector engagement in ensuring that financial stability and environmental sustainability reinforce each other.
He reaffirmed Pakistan’s commitment to climate-resilient development and to supporting global efforts aimed at aligning financial flows with environmental goals.