By Muhammad Mudassar

ISLAMABAD, July 20: Pakistan has approached the Asian Development Bank (ADB) for financial assistance for transition towards clean and green energy.

The ADB had included Pakistan in the list of the first-ever energy transition mechanism aimed to support energy mix conversion over clean renewable solutions. Federal Minister for Planning and Development Ahsan Iqbal stated that Pakistan aims to convert 60% of its energy to clean and renewable resources by 2030. The potential for solar and wind power in Pakistan is over 40,000 megawatts.

He said it was obvious that achieving Sustainable Development Goal (SDG) 7, which called for universal access to clean and sustainable energy, was indispensable for progress on all the 17 SDGs as well as climate goals.

Mansoor Muhammad Isani, research fellow at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), told WealthPK that due to lack of investment opportunities, Pakistan is unable to increase its clean energy share. So, the government must approach other international financial institutions like the World Bank, World Council for Renewable Energy, International Renewable Energy Agency (IRENA), etc.

“As Pakistan relies heavily on imported fuel for most of its needs, any unrest in the oil-producing countries can have a significant impact on Pakistan's economy,” he said.

The pace of transition towards renewable energy in Pakistan is very slow due to lack of adequate funding. By focusing on green energy solutions, the environmental issue can be resolved.

“Strict environmental rules and regulations should also be enacted in the spirit of the Paris Agreement, the UN Climate Change Conference (COP26), and SDGs,” he stated.

The transition to renewable energy will also minimise the burden of import bills and reduce the outflow of foreign exchange. Pakistan’s petroleum group imports witnessed a 99.14% growth as they reached $19.679 billion in July-May 2021-22 compared to $9.882 billion during the same period of FY21, according to Pakistan Bureau of Statistics.

It is imperative that the government facilitates renewable energy adopters. The government should develop comprehensive programs for development of renewable energy industry and markets that include technology (R&D, demonstration projects, and commercialization), supportive infrastructure, financing mechanisms, and the use of market-based instruments such as renewable portfolio standards, green pricing, feed-in tariffs, net metering, and tradable renewable energy certificates.

Pakistan’s majority population is living in rural areas where poverty ratio is comparatively higher. The government could start different schemes for rural populations who cannot afford the initial cost to install biogas or solar panels.

Credits: INP-WealthPk