The successful launch of first-ever Green Bonds by Pakistan was a testament to the country’s green credibility at the global level, said Special Assistant to the Prime Minister on Climate Change, Malik Amin Aslam.
The successful issuance also shows economic stability in Pakistan, he added. The SAPM said that the Green Bonds are a unique financing instrument to access global funding for environmental projects.
He said that Pakistan needed funding for building dams, but the multilateral banks have denied providing that because of Indian propaganda against Pakistani hydropower projects. He said that green bonds were issued for that reason.
“Pakistan, therefore, approached the commercial market of one trillion dollars that has a plethora of opportunities to bag green financing for environment-friendly and sustainable projects,” he said.
This was Pakistan’s first entry into a $1 trillion market, and while Water and Power Development Authority (WAPDA) issued $500 million Green Bonds for bids. It received six times bigger response of $6 billion funding extended by the market, he added.
“This shows that there is a positive appetite in the market based on Pakistan’s economic stability and green credibility, which will provide us the first window to enter the green market,” he said.
He informed that the resulting funding would be used in renewable energy projects, green transport, including electric vehicles, and infrastructure development. “All these projects can come under these green financing. The most interesting part of the Green Bonds is that there is no sovereign guarantee involved in the issuance of these Green Bonds,” Amin said.
He also said that the Ministry of Climate Change would assist other ministries in issuing Green Bonds for eco-friendly and sustainable projects.