Addressing carbon footprint is must to safeguard investment: OICCI

KARACHI: The Overseas Investors Chamber of Commerce & Industry (OICCI) has issued a warning about the potential negative effects on Pakistan’s exports and investment if carbon emissions are not effectively managed.

During a recent session with a select group of journalists, OICCI officials stressed the importance of aligning with the carbon border adjustment mechanism (CBAM) to ensure Pakistani products remain competitive in international markets.

President of the OICCI Rehan Sheikh said that failure to reduce carbon footprints could harm both exports and foreign investment. He advocated for a collaborative effort to tackle climate change and said , “Our resources are limited, and the problem is significant, but compliance with global carbon emission standards is essential for the private sector to compete internationally.”

Shaikh also highlighted that, given Pakistan’s climate vulnerabilities, business growth must no longer come at the expense of the environment. “We need to align private sector returns with sustainability and embrace the green transition to create new jobs and livelihoods,” he noted.

Despite contributing only 0.9 per cent to global greenhouse gas emissions, Pakistan is highly vulnerable to climate impacts and ranks as the fifth most affected country. This situation underscores the urgency for robust climate action plans and the critical role of the private sector.

To address this, the OICCI has released a report titled, ‘Pakistan’s Climate Crossroads: Private Sector Solutions to Pakistan’s Climate Challenges’, which outlines a strategy for leveraging public-private partnerships to combat climate change.

In discussing the report, Rehan Sheikh highlighted its focus on essential elements of Pakistan’s climate strategy, including action plans, needs assessments, vulnerability analysis, resilience, and mitigation and adaptation measures. The report positions the private sector as crucial in advancing climate solutions.

During the report launch, Dr Abid Suleri, executive director of the Sustainable Development Policy Institute (SDPI) and international advisory committee member of COP29, emphasized the need for urgent and collective action. He called for a shift in how the private sector is perceived, arguing that it should be seen as a key player in implementing sustainable solutions for Pakistan’s future.

The OICCI Climate Report also explores ways for corporations to integrate climate actions into their business models, such as adopting sustainable supply chain management, adhering to ESG criteria, investing in carbon markets, and fostering public-private partnerships for green development. The report showcases initiatives by OICCI members in these areas.

Andrew Bailey, a member of the OICCI Managing Committee, concluded, “Given Pakistan’s position as one of the most vulnerable countries, there is an urgent need to focus on sustainable solutions that are tailored to local contexts and resources.”

He added that the country should prioritize long-term investments in ideology, research, and sustainable solutions over quick fixes.