Achieving SDG 7 (Affordable and Clean Energy) in South and South-West Asia (SSWA) requires a multidimensional strategy that addresses both structural and financial barriers. The region’s progress towards renewable energy expansion, energy efficiency, and universal access remains constrained by limited investment flows, weak grid infrastructure, and policy uncertainty. Strengthening financing and pricing mechanisms, de-risking private investments, and integrating innovative solutions are essential to mobilise capital at scale. At the same time, resilient grid systems and regional power cooperation can lower costs, enhance reliability, and unlock cross-border trade in clean energy. Countries in South and South-West Asia (SSWA) need to:
• Increase investments in energy transition and energy efficiency across the region.
• Promote the installation of large-scale solar initiatives; however, address land scarcity challenges, particularly in coastal countries like Bangladesh.
• Ensure alignment of energy transition initiatives with national development priorities.
• Expand substantial market size with mandated adoption of clean and renewable technologies.
• Recognise Pakistan’s strong commitment to energy transition despite its relatively low share in global carbon emissions.
• Introduce attractive tax incentives and streamlined regulatory processes to encourage private sector participation.
• Highlight investment in sustainable energy as a unique opportunity offering both immediate market demand and long-term national development benefits.
• Enhance investments to strengthen and accelerate energy transition.
• Address key challenges including weak data monitoring systems, inadequate grid infrastructure, high energy intensity, and limited innovative financing mechanisms.
• Mobilise concessional financing and innovative financial tools to meet the costs of energy transition.
• Enhance federal, provincial, and sectoral institutions, improve governance frameworks, and build technical skills to design, implement, and monitor just transition pathways.
• Ensure affordable access to advanced renewable energy, storage, and efficiency technologies through partnerships and localised value chains.
• Develop solar waste recycling systems and implement producer responsibility regulations.
• Foster joint efforts to mobilise climate finance, encourage collaborative R&D and innovation, promote knowledge-sharing platforms, and expand cross-border clean energy trade and investment.
• Recognise that energy transition financing presents both challenges and opportunities.
• Address institutional coordination issues caused by fragmented governance and overlapping mandates among entities.
• Overcome barriers to accessing long-term, low-cost international concessional finance for large-scale projects.
• Mobilise green finance and support market progress for renewable energy solutions.
• Develop a Comprehensive Energy Transition and Investment Plan (ETIP) to leverage innovative blended finance models combining public and private capital for greater scale and impact.
• Focus not only on making energy accessible but also on ensuring inclusive transition outcomes, such as empowering women to run energy-based enterprises.
• Promote decentralised and community-based energy projects to enhance local ownership and resilience.
• Engage civil society organisations as watchdogs and active partners in energy transition projects to ensure transparency and accountability.
• Strengthen inter-institutional coordination for coherent and efficient policy implementation
• Integrate energy initiatives with social protection programmes such as those like the Benazir Income Support Program (BISP) in Pakistan. For example, by providing solar panels to beneficiaries instead of cash transfers to promote sustainable energy access.
