(L-R) Horacio (Luis) Carvalho, CEO of Climate Change Ventures, and Faraz Khan, MBE, at London Climate Action Week. Carvalho's firm advises on carbon mitigation and green investment projects. They signed an MOU to develop markets with Brazilian CPR Verde (green rural product certificate), a Brazilian financial credit instrument used to fund environmental preservation, forestry conservation, and carbon sequestration. The markets they are eyeing will be Saudi Arabia, Africa and Pakistan. Credit: Faraz Khan

By Zofeen Ebrahim
LONDON & KARACHI, Pakistan, Jun 26 2026 (IPS)

The 30 COP gatherings may not have done what three months of US-Israeli war against Iran did: expose the world’s vulnerability to fossil fuels.

As the world faced its biggest energy shock in a decade, the case for investing in clean energy suddenly became far more compelling.

As an intense heatwave grips Europe, with London’s Met Office issuing a “risk to life” warning and the closure of shops, offices and schools alongside disruptions to transport during the London Climate Action Week (LCAW), calls for this shift are gaining even greater momentum.

New Sense of Urgency

“The sentiment is palpable among policymakers, investors and business leaders,” conceded Faraz Khan, MBE.

A Pakistani entrepreneur and co-founder and partner of Pakistan-based Sustainadility, a technology, data and advisory firm, with over 25 years of experience in multi-stakeholder investments and in drafting environmental, sustainability and governance frameworks, is among those gathered to discuss the future of climate finance and the energy transition.

Speaking to IPS by phone on the sidelines of LCAW which closes on June 28, Khan stressed the urgency of transitioning from fossil fuels to renewable energy, saying the shift would not be possible without investors and businesses.

Khan described the mood at LCAW, as “optimistic” tempered by caution. He also welcomed the attention Pakistan was getting. “Our country was lauded for its efforts in brokering the peace deal,” referring to the Islamabad Memorandum between the United States and the Islamic Republic of Iran.

From Rule-Making to Seeking Investment

Comparing the two events, he said the annual Bonn climate talks, held from June 8 to 18, focused on diplomatic negotiations and climate rule-making, while LCAW, also an annual event held since 2019, centres on mobilising private investment in sustainability and ESG and scaling these initiatives commercially.

“LCAW is more business- and private sector-orientated,” said Khan, who is also the founder and director of  SeedVentures, a Pakistan-based social impact organisation and impact investor.

Still, he said: “There are two sides to the coin. On the one hand, the US-Iran peace deal and the reopening of the Strait of Hormuz have shown the world that oil remains crucial for the world to exist; but, on the other, many countries recognise that dependence on fossil fuels is not in their national interest and even poses a national security risk.”

Geopolitical conflicts have exposed the vulnerabilities associated with oil production, trade and transportation, which is why investment in alternative energy is expected to accelerate.

At a COP31 presidential meeting with the private sector at LCAW, which Khan attended, the conversation revolved around the circular economy, electrification and climate finance with some of the biggest names in the global climate community, including BlackRock, the World Bank, UNIDO, the IFC and several trade organisations.

“It was a gathering of the who’s who of the climate world,” Khan said with a laugh. “Even we made the cut.”

What was missing, however, Khan said, were women in decision-making roles. He was, however, impressed by those in the Turkish COP team, praising their intellectual rigour and commanding presence in the room, which he found to be “truly impressive”.

Beyond the composition of the meetings, Khan said the discussions themselves reflected a growing determination to move beyond rhetoric.

There was a strong sense in the room that a new precedent was about to be set by shifting the focus from negotiations to implementation, investment and action.

“Governments can create an enabling environment and UN frameworks can provide the rules, but ultimately it is investors, bankable projects and big businesses that will drive change,” he said.

While the Bonn climate talks focused on regulatory frameworks, LCAW’s focus is on climate finance and transactions, he noted. “And at Antalya, where the COP31 will be held this November, it will be about putting money where our mouths are—deploying capital into bankable projects and creating collaborative investment vehicles to scale climate action,” said Khan.

Private Sector Takes Centre Stage

He also observed that China was frequently cited as a global leader in clean energy investment.

“Across the various meetings, I sensed a strong and growing appetite for investment in renewable energy, and I believe this momentum will only accelerate,” he said.

Large businesses and institutions, he added, would be critical to delivering a just transition because their extensive operations and community links give them the reach needed to drive meaningful change.

The emphasis on electrification and reducing dependence on fossil fuels was echoed by Türkiye’s COP31 leadership.

Earlier this month, speaking to The Guardian on the sidelines of the climate talks in Bonn, Murat Kurum, Türkiye’s environment minister, said the 35% target would be “one of the defining priorities” of the COP31 presidency.

“By electrifying daily life, from transport to buildings and industry, we can protect families and businesses from volatile energy markets,” he told the media outlet.

Khan believed Pakistan has an opportunity to position itself at the forefront of this transition.

While Pakistan is frequently showcased as a victim of climate disasters, despite contributing less than 1% of global greenhouse gas emissions, Khan said the global focus on solar should also shine a light on the country’s “silent solar revolution”, which has transformed its investment landscape.

“Pakistan has become a global example of how solar adoption can evolve rapidly, opening up substantial investment opportunities in solar manufacturing and battery production,” he said, adding that modernising the grid and scaling up utility-scale energy storage have become increasingly urgent.

Investing in Nature

Beyond renewable energy, Khan saw significant opportunities in nature-based investments.

Khan said Pakistan’s rich biodiversity—from mangroves and forests to wetlands, rangelands and mountain ecosystems—offers enormous investment potential, with private capital capable of both restoring and protecting these natural assets.

Agriculture accounts for a large share of Pakistan’s economy and is a major driver of biodiversity loss. He said private businesses could invest in regenerative agriculture, agroforestry and sustainable rice and cotton production, either to meet sustainability goals or as part of emerging biodiversity credit markets.

“Just as there are carbon credits, there are biodiversity credits, and these are directly linked to food security and agriculture,” Khan said. Given agriculture’s central role in Pakistan’s economy, he argued that the country holds enormous potential for biodiversity credits. “I think this is going to be truly phenomenal because it presents enormous investment opportunities,” he said.

But realising this potential will depend on Pakistan’s ability to attract sustained private investment.

Investment Challenges

Sadly, there are few takers.

Khan said Pakistan’s high sovereign risk remains the biggest obstacle to attracting international climate investment at scale, although recent policy reforms, including the Pakistan Green Taxonomy, green banking guidelines and ESG standards, have improved investor confidence.

He also pointed to a shortage of bankable projects, with many failing to attract global investors despite their strong fundamentals. Still, he said, the investment potential remains enormous.

Yet time may be of the essence.

If the recent turmoil in the Middle East exposed the world’s vulnerability to fossil fuels, Khan believes it also underscored the urgency of accelerating the clean energy transition. For Pakistan, he said, the opportunity is immense—but only if the country can create the conditions needed to attract the investment required to realise it.

IPS UN Bureau Report

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Delegates huddle during the informal consultations on cooperation with other international organisations. The climate talks in Bonn were long and tense. Credit: IISD/ENB/Kiara Worth

By Umar Manzoor Shah
BONN, Jun 19 2026 (IPS)

The United Nations June Climate Meetings (SB64) ended in Bonn with sharp disagreements between developed and developing countries over climate finance, adaptation support and emissions reductions, leaving negotiators with significant unresolved issues ahead of the COP31 climate summit in Antalya, Türkiye.

After nearly two weeks of negotiations at the World Conference Center Bonn, delegates acknowledged some progress on technical matters such as technology transfer, capacity building and just transition discussions. However, many of the most politically sensitive issues, particularly adaptation finance and implementation support for developing countries, remained unresolved.

UNFCCC Executive Secretary Simon Stiell described the atmosphere as increasingly difficult, warning against what he called a tendency among countries to wait for others to act first.

“In some negotiating rooms, we’ve heard a familiar tendency towards ‘you-first-ism’ — groups refusing to deliver commitments or allow the process to move forward unless others go first. This is a recipe for gridlock when we need all negotiating tracks to be moving in the fast lane,” Stiell said in his closing assessment.

The Bonn meetings serve as a key preparatory stage for annual UN climate summits. The discussions are intended to advance technical negotiations and lay the groundwork for political decisions at the next Conference of the Parties. This year, however, the meetings exposed deep divisions over who should pay for climate action and how quickly countries should reduce emissions.

Climate negotiators in Bonn. Credit: UN Climate Change/Lara Murillo

Developing countries argued that adaptation remains an urgent priority because millions of people are already suffering from climate-related disasters. They stressed that without substantial financial support, adaptation plans cannot be implemented effectively.

Speaking on behalf of the Group of 77 and China, Uruguay said developing countries remained deeply concerned about the lack of progress on adaptation and adaptation finance.

“Adaptation remains a key priority for developing countries,” the group said, stating that there is a  need to move forward in ways that address the growing adaptation needs of vulnerable nations.

The G77 and China also called for greater attention to climate finance commitments under Article 9.1 of the Paris Agreement and stressed the importance of turning discussions into practical action.

“We should move beyond dialogues and reports and translate into effective implementation of climate action,” the group said, noting that agriculture, livelihoods and food security in developing countries are already being affected by climate change.

The European Union acknowledged that some progress had been achieved but said the pace of negotiations remained too slow.

“The pace remains insufficient to meet the scale of the challenge before us,” the EU said in its closing statement. The bloc urged countries to focus on implementing previous climate agreements and reaffirmed support for limiting global warming to 1.5 degrees Celsius above pre-industrial levels.

The EU also expressed frustration over the handling of adaptation negotiations.

“We are extremely disappointed in how GGA negotiations have been handled here in Bonn,” the bloc said, while calling for discussions to continue at a higher political level ahead of COP31.

Several negotiating groups voiced concern over attempts to challenge or weaken scientific findings that underpin international climate action.

The Environmental Integrity Group, represented by Switzerland, warned against efforts to undermine the role of science.

“Science is not negotiable,” the group declared, urging countries to support the timely publication of future reports by the Intergovernmental Panel on Climate Change (IPCC).

The group said scientific evidence had consistently guided global climate action and should remain central to future decisions, including the second Global Stocktake process under the Paris Agreement.

The Umbrella Group, represented by the United Kingdom, echoed similar concerns.

“Our climate action must always be guided by the best available science,” the group said. It expressed disappointment that negotiators were unable to reach more substantial conclusions on research and systematic observation.

The Alliance of Small Island States (AOSIS), representing some of the world’s most climate-vulnerable countries, delivered one of the strongest critiques of the Bonn outcome.

The group said it was disappointed by the pace, tone and approach of the negotiations and warned that insufficient progress had been made to ensure a successful COP31.

“AOSIS is deeply concerned by the attempts that were made across agenda items to place the 1.5 limit in doubt, to overlook and diminish its significance as a lifeline for SIDS,” the group said.

Small island nations face existential threats from sea-level rise, coastal erosion and increasingly severe storms.

AOSIS also criticised the slow progress on adaptation finance and transparency issues, saying procedural obstacles had prevented meaningful advances.

The African Group of Negotiators similarly expressed frustration over the lack of movement on climate finance.

Speaking on behalf of 54 African countries and more than 1.6 billion people, Ghana warned that Africa could not afford delays as climate impacts intensify across the continent.

“Antalya and Addis Ababa must deliver meaningful progress as a solid foundation for GST2,” the group said, referring to the second Global Stocktake process.

African negotiators argued that disputes over governance and terminology should not delay efforts to provide desperately needed adaptation finance for vulnerable communities.

The BASIC group, which includes Brazil, South Africa, India and China, also highlighted concerns over declining support for developing countries.

The group called for climate finance to occupy a central place at COP31 and urged countries to complete the transition of the Adaptation Fund so that it can better support vulnerable nations.

BASIC further stressed that developed countries must take the lead in reducing emissions while also mobilising financial support for developing nations.

The Least Developed Countries (LDC) Group delivered an emotional message, saying vulnerable populations were running out of time.

“LDCs do not look to this process for promises, but for action,” Timor-Leste said on behalf of the 44 least developed countries. “Our people didn’t send us here to negotiate the terms of their suffering.”

The group warned that climate impacts are accelerating faster than international responses.

“We reject the blatant undermining of science at this session,” the LDCs said. “Science is neither contentious nor negotiable for our group.”

The Mountain Group, representing 11 mountainous countries, focused attention on the growing vulnerability of mountain regions. Kyrgyzstan said mountain communities are facing severe challenges from glacier loss, water shortages, floods and ecosystem degradation.

The group welcomed the first formal Dialogue on Mountains and Climate Change and called for mountain issues to become a permanent part of the UN climate process.

Meanwhile, the Like-Minded Developing Countries (LMDCs), represented by China, emphasised equity and the principle of common but differentiated responsibilities as essential foundations for climate cooperation. The group argued that implementation gaps often arise because promised support from developed countries fails to materialise.

Outside the negotiating rooms, civil society organisations sharply criticised the outcome.

Oxfam accused wealthy countries of avoiding their responsibilities on climate finance.

“The UN negotiations have once again been derailed by rich countries’ refusal to take responsibility for increasing critical public climate finance,” said Mariana Paoli, Oxfam’s Climate Policy Lead.

According to Oxfam, even if the pledge to triple adaptation finance were fully implemented, it would provide about $120 billion, far below the estimated adaptation needs of developing countries, which are projected to reach between $310 billion and $365 billion annually by 2035.

Paoli described the situation as a “dark irony,” noting that the world’s first trillionaire emerged at a time when vulnerable countries were struggling to secure adequate climate finance.

“The unwillingness of rich countries to engage meaningfully is astonishing,” she said.

Despite the tensions, negotiators did achieve some notable progress.

Countries agreed on the selection of the United Nations Environment Programme (UNEP) as the new host of the Climate Technology Centre and Network, a key institution supporting technology transfer and climate solutions in developing countries. Several groups welcomed the decision as an important step toward strengthening climate action.

Delegates also reported progress on capacity-building initiatives and discussions surrounding a just transition, which aims to ensure that workers and communities are protected during the shift toward low-carbon economies.

IPS UN Bureau Report

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