MIRPUR: For the first time in ten years since its establishment under the 2010 Cancun Agreement, Azad Jammu and Kashmir has gained access to Green Climate Fund (GCF) financial aid. This comes after a denial of funding in 2019 due to the region’s disputed status.
The Green Climate Fund is a key financial mechanism for developing countries under the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. It serves as the financial instrument for these global climate change frameworks.
On February 11, 2025, during a meeting chaired by the Secretary of the Ministry of Climate Change and Environmental Coordination in Islamabad, Azad Jammu and Kashmir was officially informed that it will be included in this year’s Green Climate Funded projects worth $10 million.
This is the first time the region has become a part of this funding initiative. Azad Jammu and Kashmir’s access to the Green Climate Fund represents a significant step towards addressing climate change in the region, especially considering that no serious efforts had been made by the regional government until now. Since Azad Kashmir’s government and its departments are not approved entities under the Green Climate Fund, they will have to submit proposals through an approved organization or institution. According to authorities, proposals are currently under preparation.
It is surprising that even after nearly 14 years since the Green Climate Fund’s establishment, no serious attempts had been made by the Azad Jammu and Kashmir governments to become an approved institution for accessing the fund.
An official said that although there were some discussions in this regard, there was no real progress in securing approved institution status. This lack of effort is also reflected in the region’s financial mismanagement, with only 150 million rupees allocated for environmental projects in the current fiscal year. Of this, just 18 million rupees were spent in January 2025.
The reason for this is either delayed or insufficient funds, or the inability of the department to effectively utilize the allocated funds.
Why Was Azad Kashmir Denied Funding in the Past?
Historically, Azad Jammu and Kashmir faced significant obstacles in accessing international climate funding. Documents show that the Green Climate Fund denied funding to the region, citing its disputed status as the primary reason.
In 2018, the Azad Kashmir government submitted a proposal for $37 million through the International Union for Conservation of Nature (IUCN), titled “Development of Natural Resource-Based Resistance to Climate Change to Support the Socio-Economic Stability of Vulnerable Communities in Upland Watersheds.” IUCN is an approved institution under the Green Climate Fund. However, authorities stated that the Green Climate Fund rejected the proposal because Azad Kashmir is considered a disputed area.
Similarly, in 2021, the World Bank also refused to provide funding to the region based on the same rationale. The Azad Kashmir government had proposed a project titled “Restoration of Ecosystems in Selected Areas of the State,” which was estimated at 1.6 billion rupees. This proposal was submitted through the country’s national disaster risk management fund, but it too was rejected by the World Bank due to its restrictions on funding for activities in disputed areas.
Moreover, in December 2021, the National Disaster Risk Management Fund (NDRMF) informed the Azad Kashmir government that it would not provide funding for the “Restoration of Ecosystems” project because it was part of the World Bank’s Ecosystem Restoration Initiative (ESRI) portfolio, which does not fund activities in disputed regions.
Previously, in June 2021, NDRMF had offered financial support for this project, but due to the World Bank’s restrictions, NDRMF had to retract the offer and ultimately cancel the proposal.
Can Foreign Financial Aid Solve Azad Kashmir’s Climate Crisis?
Experts argue that while gaining access to the Green Climate Fund (GCF) resources is an important step, it is not enough by itself. The region needs to significantly strengthen its institutional framework to effectively tackle climate change.
According to a meteorological expert, just like Pakistan, Azad Kashmir should establish a dedicated authority for climate change. This authority would draft a law at the state level to ensure the effective implementation of national climate change policies in Azad Kashmir.
Once these steps are taken, it will be possible to control various factors contributing to climate change. After establishing the institutional framework, the expert emphasized that climate change should be incorporated into the development planning process. Future projects must be designed with climate change in mind to avoid exacerbating environmental degradation.
The expert further stated that attention should focus on identifying the factors affecting climate change and taking necessary steps to mitigate them. Suitable environmental projects such as clean energy initiatives could also provide financial benefits through carbon credits.
Additionally, the expert suggested that this authority should take crucial steps to stop deforestation and regulate unplanned settlement patterns. The restoration of forests, protection of water resources, and controlling the melting of glaciers should be prioritized.
Moreover, the expert stressed the importance of conducting a comprehensive study on glaciers to understand current conditions and trends, as no such study has been conducted since 2017.
This momentous development offers a glimmer of hope for Azad Kashmir’s long-neglected environmental crisis, but it is clear that sustainable progress will require a multifaceted approach involving institutional reforms, long-term planning, and collaboration at both the regional and international levels.
