Explainer: Climate finance is great but how do you get it?

In the summer of 2022, monsoon rains combined with glacial melt to produce one of the worst flooding disasters in Pakistan’s history. In this flood, roughly two million homes were damaged, and thirty-three million people were affected. Nearly 8m people are reportedly displaced. The World Bank’s post-disaster needs assessment estimated total damages at close to $15 billion, with reconstruction needs exceeding $16bn. At COP27, Climate Minister Sherry Rehman turned this catastrophe into a diplomatic breakthrough, helping secure global agreement on the Loss and Damage Fund .

In the eyes of many who covered the summit, Pakistan became the poster child of climate justice. Three years on, the fund exists. Pakistan’s problem has not gone away. The country’s climate financing need is very large and cannot be ignored. The World Bank estimates that a comprehensive response to Pakistan’s climate and development challenges between 2023 and 2030 will cost around $348bn. Of that, $152bn is for adaptation and resilience, and $196bn is for reducing emissions across the economy. Compared with this needed amount, the country receives very little. Donors pledged more than $9bn at the Geneva…