ISLAMABAD: Pakistan and Germany have agreed to deepen cooperation under the Pakistan-Germany Climate and Energy Partnership, with Berlin committing €114 million ($122 million) in new financial and technical support for the current fiscal year, Radio Pakistan reported this week.
Pakistan has identified climate resilience, clean energy transition and social protection as key national priorities as the country recovers from successive climate shocks, including the devastating 2022 floods that affected over 33 million people and floods this year that killed over 1,000 people and devastated millions of acres of farmland. The country is ranked among the world’s most climate-vulnerable nations despite contributing less than one percent to global greenhouse gas emissions.
The new commitment was announced during delegation-level talks in Islamabad between Secretary of the Ministry of Economic Affairs Muhammad Humair Karim and Christine Toetzke, Director-General at Germany’s Federal Ministry for Economic Cooperation and Development.
The German delegation “announced a new financial and technical commitment to the tune of 114 million Euros for current fiscal year,” according to a summary of the discussions published by state broadcaster Radio Pakistan.
Both sides also agreed to strengthen coordination on vocational training and youth employment, and to continue collaboration on social protection and disaster resilience, sectors seen as critical to improving climate readiness and supporting vulnerable communities.
Christine Toetzke “appreciated Pakistan’s reform measures and reaffirmed Germany’s commitment to supporting Pakistan in addressing the challenges of climate change, economic transformation, and social inclusion,” the Radio Pakistan report said.
Germany and Pakistan established their Climate and Energy Partnership in 2021, aimed at expanding renewable energy supply, improving grid efficiency and supporting community-level climate adaptation.
The latest assistance is expected to reinforce ongoing climate resilience programs and job-linked technical training for young workers in green industry and clean energy sectors.
Last month, Pakistan said it had moved to the implementation phase of its national carbon market under a German-funded initiative as the country seeks to strengthen its climate governance and attract international investment for low-carbon development.
The partnership, under the Supporting Preparedness for Article 6 Cooperation (SPAR6C) program funded by the German Federal Government, aims to help Pakistan transition from policy readiness to practical implementation of market-based climate mechanisms in line with global standards.
Carbon markets allow countries and companies to buy and sell credits that represent reductions in greenhouse gas emissions, creating a financial incentive to cut carbon output. Under Article 6 of the Paris Agreement, nations can trade these credits internationally to help meet their climate targets while funding low-carbon projects in developing countries.
