Number of Downlaods: 162
Published Date: Apr 20, 2021
For renewable energy transition in Pakistan, a significantly large number of economical and technological challenges have to be addressed. For a successful transition, the leadership from Pakistan and as well as international collaborators will play a critical role. Decarbonization alone will not solve the issues pertaining energy sector since most energy projects are high investments and require a feasible return in investment. Pakistan itself is not technologically equipped and hence need support from other countries especially China for efficient energy generation and utilization.
China is currently the main investor in coal power sector of international market where it has funded coal projects of around $21-38 billions (Journals and Perspectives, 2017). Hence along with other energy resources, coal has provided a foundation for cooperation of energy association between nations under China’s Belt Road Initiative (BRI) (Andrew Chatzky, 2020). Collaboration between China and Pakistan under CPEC is majorly dominated by coal power plants (more than half) which brings forward the environmental hazards around the BRI. However, at the same time, China is also leading in renewable energy by being the largest prouder of wind and solar. China has recently scaled up its INDCs by adopting vigorous policies and measures according to which emission from energy sector will peak around 2030 and China will achieve carbon neutrality by 2060 (EEAS, 2020).
As climate is changing there are more risks and Pakistan also needs to contribute to global agenda by moving away from fossil fuels. Pakistan has also recently launched its ARE Policy 2019 that identifies a 30% share of renewables by 2030 (AEDB, 2019). Hence it is apparent to analyze that the response to climate change is mutual aspiration for both China and Pakistan. This report discusses in depth the risks associated with future coal investments and how china can play an important role for Pakistan to achieve its goal in energy sector in line with agenda 2030. It is therefore imperative to focus and divert further investment from fossil fuels to renewable energy by taking a more diverse leadership role in line with the concept and vision of global energy governance, commitment to Paris agreement, and NDCs.