Joint Statement

Pakistan has been in the forefront of protecting and conserving environment through nature-based solutions like the Billion Tree Afforestation Project of Khyber Pakhtunkhwa (KP) province which was widely appreciated by the World Economic Forum (WEF), the Bonn Challenge and other international fora. Similarly, the 10 Billion Tree Tsunami project (10 BTTP) another flagship project of the current government with the overarching objective of mitigating the adverse impacts of climate change, was initiated and the project’s key components include improved forestry sector performance through a large component of afforestation and forest protection as well as better management of protected areas. In addition, initiatives like Green Economic Stimulus (GES) as part of the Government’s efforts to extend green cover in the country especially in the wake of the COVID-19 crisis is considered as an innovative livelihoods creation initiative.

The Ecosystem Restoration Initiative (ESRI) is another intervention of the Government that aims to facilitate transition towards an environmentally resilient Pakistan by mainstreaming adaptation and mitigation through ecologically targeted initiatives covering afforestation, biodiversity conservation, and enabling and enhancing policy environment consistent with objectives outlined in Pakistan’s Nationally Determined Contribution (NDC).

We commend Pakistan’s leadership for all these interventions. We welcome and endorse the Government of Pakistan’s ongoing efforts to create the world’s first Nature Performance Bond (NPB) with a defined set of ambitious ecosystem restoration targets. Pakistan has already conducted a preliminary identification of nature restoration priorities, targets, and performance indicators.

We foresee a clear need to generate a strong and timely demonstration of international financial cooperation, especially in crowding in the private sector and the Multilateral Development Banks to support countries like Pakistan. NBPs are one way to provide Pakistan with accelerated access to finance for development - also high on the agenda of the COP26, co-chaired by the UK and Italy.  We also believe that there is a need to inject fresh funds into the emerging new spheres of regenerating degraded landscapes and ecosystems and boosting nature capital accounting in Pakistan as it endeavors to manage its sovereign debt.

The Government of Pakistan and selected development partners accept to engage in a dialogue for launching this pioneering initiative to enable a green recovery and accelerate natural capital restoration action in the country. The size and term sheet of this bond will be developed by a consortium of financial advisers consistent with market conditions.

Through this joint statement, we intend to further engage in productive discussions on the design of this instrument and look at opportunities to facilitate Pakistan’s efforts on NPBs.

We appreciate and support the Government of Pakistan’s efforts towards launching this pioneering initiative which will contribute significantly to promoting action on climate change and sustainable development.

Signatories: