ISLAMABAD: Investment in renewable energy projects is seen as a solution to Pakistan’s financial woes. However, the country’s current economic situation makes the import of materials related to renewable energy a luxury it cannot afford, said Dr. Khalid Waleed, an energy expert at the Sustainable Development Policy Institute (SDPI), while talking to WealthPK.
Pakistan’s dependence on imported fossil fuels is evident. The import bill of petroleum products has decreased by 11.66 percent from the previous year, standing at $13.08 billion, based on the data from the Pakistan Bureau of Statistics (PBS).
To address the country’s economy-energy-environment (3Es) dilemma, Dr. Khalid Waleed told WealthPK that sustainable energy security and climate justice must be incorporated into Pakistan’s economic policy.
“This holistic policy roadmap must include long-term economic planning and partnerships focused on just energy transition and climate justice, leading to investments in renewable energy such as wind, solar, and micro hydropower. However, achieving this transformation is not simple and requires significant investment in infrastructure, technology, and human capital, as well as political will, leadership, and international cooperation and support,’’ said Dr Khalid.
Developed nations must provide financial and technical assistance to help developing countries like Pakistan transit to sustainable energy.
Dr. Khalid Waleed emphasized that Pakistan needs to present a strong case for climate diplomacy and just energy transition partnerships. The United Nations Framework Convention on Climate Change (UNFCCC) has established the Green Climate Fund (GCF), which aims to mobilize climate financing to support developing nations in their efforts to address climate change.
Additionally, he said the Energy Transition Mechanism (ETM) by the Asian Development Bank (ADB) offers an opportunity to transition away from coal-fired power plants to renewable alternatives.
He further said the ADB is currently conducting a pre-feasibility study in Pakistan to establish criteria for an early retirement of coal-fired power plants, and this initiative also explores similar possibilities under the China-Pakistan Economic Corridor (CPEC).
Implementing these suggestions can help Pakistan reduce its carbon footprint and improve its platform for climate diplomacy, he said, adding that this will provide Pakistan with a sustainable solution to its energy, economic, and environmental problems.
Talking to WealthPK, Executive Director of SDPI Dr. Abid Qaiyum Suleri, said, “Excessive production of carbon emissions by the Global North (the US, EU, and Japan) was responsible for 46 percent of global fossil fuel burning from 1992 to 2022.”
He said the Ministry of Climate Change in Pakistan has put in place several institutional arrangements to mobilize climate finance and promote green financing.
The main vehicles to access these funds include the National Climate Change Policy, Nationally Determined Contributions (NDCs), National Disaster Risk Management Fund, engagement with the Green Climate Fund, and the private sector.
Moreover, he said more needs to be done to strengthen these arrangements and mobilize resources to address the country’s climate-related challenges.
“Developing and implementing climate-resilient infrastructure, promoting climate-smart agriculture, and strengthening disaster preparedness and response, among other measures, will reduce vulnerability to extreme weather events,” he said.
According to the World Bank data obtained by WealthPK, Pakistan requires a total investment of approximately USD348 billion between 2023 and 2030 to address its climate and development challenges. This includes USD152 billion for adaptation and resilience measures and USD196 billion for achieving deep decarbonization. –INP
