Towards Green Energy: Leveraging CPEC for Pakistan’s Climate Goals

New-CPEC

Pakistan faces immense challenges in addressing its climate crisis, with the World Bank estimating a need for $348 billion by 2030 to meet climate adaptation and mitigation goals. Of this, $152 billion is allocated for adaptation and resilience, while $196 billion is needed for decarbonization.

The nation’s 2021 Nationally Determined Contributions set an ambitious goal of reducing projected emissions by 50%, with 15% coming from domestic resources and 35% contingent on international support. Key to this effort is Pakistan’s green energy transition, requiring $101 billion by 2030, with an additional $65 billion needed by 2040 to complete renewable projects, build hydropower plants, and phase out coal.

The Sustainable Development Policy Institute (SDPI) highlights China as a crucial partner in this transition. Through the China-Pakistan Economic Corridor (CPEC), Chinese investors and technologies could provide the necessary impetus for renewable energy, solar, wind power, and decarbonization in Pakistan. Chinese investment has already contributed significantly, especially in solar energy, where it accounts for 87% of foreign investment.

However, Pakistan faces challenges, including financial hurdles, policy inconsistencies, and investor concerns over delayed payments and circular debt. To attract Chinese investment, the country must address these issues, ensure timely payments, and honor contracts to foster a stable environment for renewable energy development.

Strengthening collaboration with Chinese stakeholders and advancing green finance mechanisms could unlock the potential of CPEC to propel Pakistan toward a low-carbon future.

Stroy by Nasir Jamal

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