ISLAMABAD: Green investment in the power and transport sectors can help Pakistan reduce carbon emissions and hefty oil import bills with the help of public-private investment, reports WealthPK.
Dr. Iftikhar Ahmed, an environmental expert at the Pakistan Institute of Development Economics (PIDE), told WealthPK that green investment could prevent further escalation in pollution by reducing carbon emissions, addeing that the public-private partnerships (PPPs) will contribute towards transforming our growing economy into a low carbon emission economy.
He said green finance is both directly and indirectly related to various sustainable development goals. The aim of sustainable development, net zero-emissions, and sustainable production and consumption could not be achieved unless the private sector is included.
According to Iftikhar, PPPs (public-private partnerships) are important because the government mostly introduces regulations to ensure the welfare of the people and faces budget deficiencies to pump money into many projects. In this scenario, the private sector can play its role by making investments.
With PPPs, the pathway for sustainable development can be achieved, Iftikhar said, adding that energy and transport sectors are major emitters of carbon dioxide.
According to the OCAC (Oil Company Advisory Council) data, transport and energy sectors are the major consumers of oil. During the first 11 months of the Fiscal Year2021-22, the transport sector consumed 75 percent of total consumption of oil, while the power sector consumed 15 percent.
Iftikhar said the transport sector is a major source of air pollution due to the higher number of vehicles on the road that emit toxic material into the atmosphere.
He said investment in hybrid technology and renewable energy will assist the country in reducing emissions of greenhouse gases and generate employment. Investment in hybrid technology and renewable energy will also provide lucrative profits to investors and help save the depleting foreign reserves by decreasing dependence on oil imports.
Iftikhar said Pakistan has great potential to produce green energy by using renewable energy sources (wind, solar, thermal, and hydel) because of its geographic location. He suggested the following imperative steps to increase investment in green energy.
Firstly, soft loans should be provided to investors for green financing.
Secondly, the government should provide incentives to private and foreign investors in the form of low tax on profit to encourage investment.
Thirdly, apart from the implementation of emission and fuel quality norms, steps must be taken to scrap old vehicles and certificates should be issued to the vehicles producing less pollution. High polluting vehicles should not be allowed on the road.
And lastly, the government should cooperate with the private sector and encourage them to invest in environment-friendly products to fight climate change.
