CPEC Green Development Program (Infrastructure and Transmission)

CPEC Green Development Program (Infrastructure and Transmission)

Focal Person: Mr. Ubaid ur Rehman Zia, Dr. Khalid Waleed

Partners: Embassy of People’s Republic of China

Description:
The China-Pakistan Economic Corridor (CPEC) has been a cornerstone of Pakistan's socio-economic development, delivering significant infrastructure and energy projects over the past decade. However, as the initiative transitions into its second phase (CPEC 2.0), a critical need has emerged to address economic sustainability challenges and align future collaborations with the green development goals of both nations. Issues such as payment crises for existing power projects, an uncertain regulatory environment, and a pressing need to integrate renewable energy sources necessitate a strategic shift towards a more holistic, people-centric, and environmentally sustainable growth model.

This program, implemented under SDPI's China Study Centre and  designed to bridge this gap by fostering a green development pathway for CPEC. It aims to leverage evidence-based research and multi-stakeholder dialogues to build a positive narrative, identify low-carbon investment opportunities, and develop a rational policy roadmap. The program will specifically focus on strengthening the industry-energy nexus, promoting the localization of renewable energy industries in Special Economic Zones (SEZs), modernizing the grid for variable renewable energy (VRE) integration, and unlocking sustainable investment potential in key regions like Balochistan, thereby ensuring CPEC 2.0 is inclusive, equitable, and forward-looking.

Project Objective:

To steer CPEC towards a sustainable and green development pathway by conducting evidence-based research, facilitating high-level strategic dialogues, and building a constructive narrative that aligns with the socio-economic and environmental goals of both Pakistan and China.

Key Proposed Outputs:

Modernize Grid Infrastructure: Scope the potential and investment opportunities for Chinese investors in Pakistan's Transmission and Distribution (T&D) system to support and accelerate renewable energy uptake.

Build a Positive Narrative: Build discourse and advocacy around the socio-economic uplift and developmental impacts resulting from Chinese investments in Pakistan's energy sector.

Unlock Balochistan's Potential: Conduct a comprehensive scoping study on development in Balochistan under CPEC, identifying key market opportunities and growth potential to inform strategic investments.

Promote Green Industrialization: Develop a strategic framework for the localization of the renewable energy industry and low-carbon technologies within selected CPEC SEZs, focusing on investment opportunities, policy frameworks, and partnerships.

Project Activities:

Scoping Study on "Investment Needs for Pakistan’s T&D Sector".

Scoping Study on "Balochistan Development Under CPEC: Market Opportunities and Potential".

Policy Brief on "Potential and Opportunities for industry growth under the SEZs of CPEC".