Policy Recommendations

C-3: Greening the Belt and Road Initiative (BRI): China’s Central Role in South- South Renewable Energy Transitions

The Green BRI can serve as a model of inclusive development where innovation, policy coherence, and regional collaboration converge to deliver low-carbon growth. For Pakistan, greening the Belt means greening its future: building better, investing in people, and securing sustainable prosperity through renewable transformation:

1.    Move from slogans to sustained action by embedding measurable environmental and social indicators into all BRI projects to ensure accountability and continuous improvement.

2.    Focus on quality over quantity and prioritise sustainable, climate-resilient, and community-responsive infrastructure instead of expanding project numbers.

3.    Institutionalise policy consistency by establishing a cross-ministerial BRI Green Coordination Council to ensure coherent, long-term policies insulated from political cycles.

4.    Reduce Pakistan’s import dependence by scaling up solar, wind, and hydropower, using indigenous resources to stabilise costs and emissions.

5.    Develop a National Green Industrialisation Plan that integrates circular economy principles, resource efficiency, and low-carbon manufacturing across all sectors.

6.    Adopt the “5S Roadmap for Solar Manufacturing in Pakistan”:

·       Strategy: Formulate a long-term National Solar Localisation Strategy.

·       Subsidies: Reform tariffs and taxes to make local solar technologies more competitive.

·       Standards: Enforce national quality standards for reliability and performance.

·       SEZs: Utilise CPEC Special Economic Zones to attract Chinese and regional joint ventures.

·       Science and Knowledge: Build human capital through joint R&D and university-industry partnerships.

7.    Localise green value chains and promote solar panel assembly, EV manufacturing, and battery recycling industries within Pakistan to retain economic value and create jobs.

8.    Establish vocational and technical training programmes to prepare youth for green jobs and renewable energy careers.

9.    Address fossil fuel dependency by phasing down diesel and petrol consumption and curb cross-border fuel smuggling that undermines clean-energy goals.

10. Utilise and learn from China’s experience in green finance, governance, and technology transfer to strengthen Pakistan’s institutional and industrial capacity.

11. Invest in power transmission and smart grids to integrate variable renewable energy and improve distribution efficiency.

12. Promote regional power connectivity and link with South and Central Asian power corridors for stable, diversified energy trade.

13. Ensure investor confidence through regulatory stability, transparent incentives, and protection for domestic and foreign investors in renewable energy.

14. Identify and prioritise solar hotspots, notably Balochistan and Southern Punjab, for large-scale solar investments supported by dedicated industrial clusters.