Islamabad, Dec 19: At a high-level policy roundtable organized by the Sustainable Development Policy Institute (SDPI), energy experts and economists highlighted the urgent need for Pakistan to accelerate its transition from fossil fuels to renewable energy solutions. The discussion focused on the importance of a dedicated framework for clean energy transition, particularly the shift away from coal and other fossil fuels.
Dr. Khalid Waleed, an energy expert at SDPI, emphasized that localizing renewable energy technologies is crucial for Pakistan’s energy security. He pointed out that Pakistan’s over-investment in coal plants, intended to solve the energy accessibility crisis, has led to underutilized projects that strain national finances. He also cautioned that Pakistan could face challenges in international mechanisms like the Carbon Border Adjustment Mechanism (CBAM) due to its continued reliance on coal.
Zainab Babar, a researcher from SDPI, presented findings on the need for Pakistan to retire inefficient coal plants and shift towards cleaner energy sources. She argued that this transition would not only improve Pakistan’s global positioning but also offer significant financial returns through carbon credits from avoided emissions.
Dr. Majid Bilal from the Indus Consortium outlined five key principles for a successful clean energy transition. These included strong community engagement, social protection measures, workforce training, and the promotion of small and medium-sized enterprises (SMEs) to create local jobs. He also called for a gender-sensitive approach to the energy transition, focusing on increasing female workforce participation in the energy sector.
Julia Skorupska from the Powering Past Coal Alliance proposed blended finance as a solution to expedite coal plant retirements. She urged governments to align tariffs and halt the construction of new coal plants while utilizing available public and private finance for the energy transition.
Afia Malik, Senior Economist at PIDE, provided data showing the long-term benefits of renewable energy, including a global net gain of $78 trillion by the end of the century. She noted that renewable energy could create three times as many jobs as coal plants, making it an economically viable option despite the high upfront costs.
Dr. Majid Ali from USPCASE, NUST, pointed out that while Pakistan’s adoption of solar energy is growing, it still represents only 1.5% of the energy mix compared to coal’s 16%. He called for renegotiating terms with China on coal plants and exploring climate swaps to reduce the financial burden of retiring these plants early.
Selina Irfan, Advisor at SDPI, stressed the need for immediate action, advocating for optimizing local resources and incorporating technologies like clean coal washing and low-NOx burners. She also suggested revising the Integrated Generation Capacity Expansion Plan (IGCEP) to align with clean energy goals. Irfan Pervaiz, Deputy Director at PPIB, raised concerns over the financial implications of early coal power plant retirements under the China-Pakistan Economic Corridor (CPEC) projects. He recommended innovative financial mechanisms like climate swaps to mitigate these costs.
Shakeb Elahi, Senior Advisor at SDPI, concluded the discussion by emphasizing that the clean energy transition is critical for Pakistan’s survival. He called for immediate action to adopt a clean energy transition framework and secure global partnerships to address the challenges of early coal plant retirements.
The roundtable highlighted the complex challenges of transitioning to clean energy, but also underscored the significant economic, environmental, and social benefits that a shift to renewable energy could bring to Pakistan.
