The promise of “green growth,” the idea that economies can keep expanding while decarbonizing, rests on technological innovation, market incentives, and targeted policy. Yet without robust oversight, many so-called green initiatives amount to “greenwashing,” superficial claims that confer political or financial advantage without altering core carbon-intensive practices. This tension is inherently political: genuine transition redistributes costs and benefits, while greenwashing entrenches existing power and inequality.

Emerging economies face acute trade-offs: sustaining growth and energy access under debt constraints while confronting climate risks that threaten infrastructure, agriculture, and public health

Globally, renewable capacity is soaring, but fossil-fuel use remains stubbornly high, suggesting renewables often supplement rather than replace existing energy systems. Investment patterns show that for every dollar directed to clean energy, nearly three flow into fossil-fuel subsidies or projects, a ratio that undermines decarbonization goals and underscores the political clout of legacy industries. Emerging economies face acute trade-offs: sustaining growth and energy access under debt constraints while confronting climate risks that threaten infrastructure, agriculture, and public health.

Pakistan illustrates these tensions. Though its emissions are below 1 percent of the global total, it ranks among the world’s most climate-vulnerable countries. Urban rooftop solar has grown rapidly, driven by wealthier households seeking relief from rising electricity tariffs, but remains inaccessible to poorer communities, exacerbating inequality and stranding parts of the national grid. Rural areas, dependent on agriculture, suffer both from energy shortfalls and climate shocks: unpredictable monsoon patterns have slashed crop yields by up to 30 percent in some districts, undermining food security and rural incomes.

Canal-irrigation reforms intended to conserve water have stalled amid opposition from large landowners, illustrating how reformist policies can be diluted by entrenched interests

Policy tools can also misfire. Pakistan’s new Green Taxonomy aims to steer investment toward sustainable projects, yet critics note it reclassifies drought-prone lands as “green” asset classes, boosting speculation rather than resilience. Provincial climate strategies often treat climate action as an add-on, failing to address the political economy of water rights, land use, and energy subsidies. For instance, canal-irrigation reforms intended to conserve water have stalled amid opposition from large landowners, illustrating how reformist policies can be diluted by entrenched interests.

Corporate greenwashing adds another layer. Firms advertise “eco-friendly” products while relying on water-intensive, coal-fired processes; banks promote “green finance” without transparent accounting of loan-portfolio emissions. Such practices erode public trust and divert regulatory capacity from genuine reform. In one case, a major textile exporter won an international “green factory” award even as local watchdogs documented untreated wastewater discharge into rivers, revealing a gap between certification standards and on-ground realities.

Climate-smart agriculture techniques, such as drought-resilient seed varieties and precision irrigation, can raise farmer incomes by up to 20 percent while reducing water use by 30 percent

To move from greenwashing toward authentic green growth, Pakistan must strengthen governance and widen access to sustainable finance. Measurable definitions of “green,” mandatory third-party audits, and penalties for misleading claims would improve accountability. Expanding micro-credit and community-owned mini-grids can bring renewable benefits to low-income households while stabilizing the grid. Embedding climate resilience into agriculture, infrastructure, and urban planning can generate co-benefits for livelihoods, health, and economic stability. For example, climate-smart agriculture techniques, such as drought-resilient seed varieties and precision irrigation, can raise farmer incomes by up to 20 percent while reducing water use by 30 percent.

International cooperation also matters. Climate finance pledges to Pakistan have reached $14 billion since 2015

International cooperation also matters. Climate finance pledges to Pakistan have reached $14 billion since 2015, yet disbursement lags and conditionalities often prioritize macroeconomic reforms over local resilience projects. Redirecting a greater share of funds to community-driven adaptation, such as watershed management and flood-resilient housing, would bolster both equity and effectiveness. Moreover, partnerships with regional neighbors on transboundary water management could mitigate looming crises over the Indus basin, turning a potential flashpoint into an avenue for collaboration.

Pakistan’s test will be whether it uses its policy frameworks and international support not merely to signal virtue, but to redistribute resources, build equitable resilience, and decarbonize broadly

Green growth is not automatic; it requires deliberate political choices that prioritize long-term resilience over short-term headlines. Where incentives favor quick wins and visible signals, such as high-profile solar parks, greenwashing will proliferate. Where regulations are robust, transparent, and enforceable, and where finance reaches the many rather than the few, green growth can become more than a slogan. Pakistan’s test will be whether it uses its policy frameworks and international support not merely to signal virtue, but to redistribute resources, build equitable resilience, and decarbonize broadly. Only then can the promise of a climate-compatible economy be realized, transforming vulnerability into opportunity rather than into another layer of inequality.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.