The 5th ESG Focused Workshop on Green Taxonomy, held on February 27, 2025, at OICCI, gathered industry leaders and financial experts to discuss green financing and Pakistan’s commitment to sustainable economic growth. With climate change costing 11.1 percent of GDP and an estimated $348 billion needed for mitigation, the urgency for a National Green Taxonomy is greater than ever.
Andrew Bailey, Co-chair of the ESG Subcommittee and Managing Director at BASF, opened the session, emphasizing Green Taxonomy as a structured approach to climate-conscious financial decisions.
Dr. Mian Farooq Haq, Director at State Bank of Pakistan (SBP), announced that Pakistan’s National Green Taxonomy will be launched soon to guide financial decisions, ensure transparency, and align climate objectives. He highlighted Pakistan’s vulnerability to climate change, ranking among the top 10 most affected nations, with Punjab being the worst-hit province and agriculture as the largest contributor to climate challenges. He noted that SBP’s Green Banking Guidelines (2017) laid the foundation for this science-based taxonomy, prioritizing critical sectors based on GDP contributions. He outlined its far-reaching benefits, including clarity for banks and unlocking green investment opportunities. Training programs for financial institutions will follow the launch to ensure a smooth transition towards a sustainable Pakistan in line with the Paris Agreement.
Fahad Hasan, Financial Sector Specialist at The World Bank, stressed that green financing is now a necessity. He described Green Taxonomy as a classification system that guides investors towards sustainable economic activities and shared global success stories from China, Bangladesh, and the EU. He noted that Pakistan is well-advanced in its Green Taxonomy journey, with SBP and the Ministry of Climate Change (MoCC) leading the efforts. He urged private investors to take an active role in financing the transition and highlighted the two key pillars: Mitigation (reducing climate risks) & Adaptation (ensuring resilience), along with fair Implementation.
Muhammad Shuja Ali, Head of Investment Banking & Strategic Initiatives at Saudi Pak Industrial and Agricultural Investment Company Ltd. discussed Saudi Pak’s journey toward a climate-resilient business model and the role of financial institutions in sustainable investment.
Kauser Parveen, ESG Subcommittee member, moderated the discussions, facilitating valuable insights from the speakers and participants.
M Abdul Aleem, Secretary General of OICCI, concluded the session by reinforcing the private sector’s crucial role in adopting Green Taxonomy, despite the challenges. He announced OICCI’s support for the framework and thanked speakers, panelists, and ESG subcommittee members for their contributions.
