ISLAMABAD: Pakistan and Denmark have shown eagerness to strengthen their bilateral ties by enhancing cooperation on sustainable development goals (SDGs), climate action, renewable energy, and trade.
M Amin Uddin, an official of the International Trade Section of the Planning Commission, told WealthPK that Pakistan’s reliance on external energy sources such as fossil fuels, gas, and other forms of energy is the primary cause of the country’s current account deficit.
“Switching to clean and green energy will not only alleviate that burden, but also substantially reduce carbon emissions,” he said.
Amin said Pakistan’s recent policies and initiatives have strongly advocated the need for increasing transition towards renewable energy (hydro, solar, and wind).
According to the United Nations, Sustainable Development Goal 7 (SDG 7), affordable, reliable, sustainable, and modern energy for all should be ensured by 2030. “Achieving this target would require prompt measures for building energy infrastructure, mainly for renewable energy technologies,” said the official.
“If Denmark is ready to provide technical and financial support to Pakistan to enhance the country’s reliance on alternate energy sources to at least 50%, and reduce dependence on thermal and fossil fuels, it will be a great effort that will expedite the shift from conventional to renewable energy sources. It will allow us to meet more ambitious emissions objectives than we currently have,” Amin stated.
He pointed out that the wind energy currently accounts for a smaller proportion of the total energy generation in Pakistan, but it accounts for more than 50% in Denmark. “This is an area where Denmark, which is a world leader in green energy, can help us a lot,” he stated.
Lis Rosenholm, Danish Ambassador to Pakistan, recently said at an event that with Pakistan’s ambitious policies for a green transition and Denmark’s expertise in green growth and sustainability, both countries have a strong basis for collaboration.
She pointed out that climate change and environmental and biological deterioration are the major concerns of the modern era.
“Denmark is a global pioneer in the transition to a green economy. We are global leaders in the transition from fossil fuels to renewable energy, bringing decades of knowledge and ideas into energy planning, renewables integration, offshore wind, and energy efficiency under the Danish Energy Transition Initiative (DETI),” she said.
In terms of trade, for many years, Pakistan’s exports to Denmark have been on an upward trajectory. Imports from Denmark, on the other hand, have decreased. Pakistan benefits from the European Union’s GSP Plus status, which allows for tariff-free imports into the EU from Pakistan, making Pakistani products more competitive in Denmark, WealthPK reported.
The major imports from Denmark include machinery, parts, medical and pharmaceutical products, vegetable fats, chemicals, metals, medical and surgical instruments. Danish company FL Smidth is a major supplier of technology and machinery for cement plants in Pakistan.
