ISLAMABAD: The World Bank has classified the entire $375.9 million financing for Pakistan’s Grid Stability Enhancement Project as climate finance, with 95 percent allocated to climate change mitigation and the remaining five percent designated for adaptation measures.
Thank you for reading this post, don't forget to subscribe!According to the World Bank’s IBRD/IDA Climate Finance Assessment Sheet for fiscal year 2027, the project, titled BEST-PAK MPA Programme Phase 1: Grid Stability Enhancement Project, has been assigned project ID P504536 and falls under the Energy and Extractives sector.
The assessment shows that the project’s total climate finance component amounts to $375.9 million, representing 100 percent of its IBRD/IDA financing.
Of the total amount, $357.11 million, or 95 percent, has been classified as climate mitigation finance, while $18.8 million, equivalent to five percent, has been allocated to climate adaptation.
The project’s largest component involves the installation of power electronics-based Reactive Power Compensation Devices (STATCOMs), with financing of $369.9 million. The World Bank has classified the entire allocation as climate finance, including $351.41 million for mitigation and $18.5 million for adaptation.
The remaining $6 million has been earmarked for technical assistance and project implementation support. Of this amount, $5.7 million has been classified as mitigation finance and $0.3 million as adaptation finance.
The assessment also identifies $37.59 million in dual-benefit financing for measures that contribute to both climate adaptation and mitigation. To avoid double counting, the World Bank has deducted 50 percent of this amount from each category when calculating the final climate finance breakdown.
The classification is based on the Joint Multilateral Development Banks’ methodologies for tracking climate adaptation and mitigation finance.
Story by Tahir Amin
