event details - Symposium on “Accelerating the Just Energy Transition in Pakistan”

Concept Note:

Pakistan currently contributes less than 1% of global greenhouse gas (GHG) emissions, however, it is the eighth most vulnerable nation to the climate crisis.1 To compound matters, Pakistan’s GHG footprint is set to increase per the current trajectory with CO2 emissions from coal increasing by 500% over the last 30 years (Centre for Research on Energy and Clean Air (CREA) 2021).2 Over the past decade, following the regional trend, Pakistan has dramatically increased its reliance on coal from 3.4 million tonnes of oil equivalent (Mtoe) to 12.6 Mtoe by 2020, reflecting a four-fold increase (International Energy Agency 2021). In 2015 coal-generated power was almost absent from the nation’s energy mix, but in Pakistan’s latest Indicative Generation Capacity Expansion Plan (IGCEP 2022-31), it was expected to contribute 23% of electricity generation in 2023.3 The argument to build and speed up coal projects is based on economic and energy security powered by domestic reserves of coal.

However, this seems to be a very short-term development strategy, sustainability requires long-term solutions for green development. Coal-fired power plants are one of the largest sources of greenhouse gas emissions, with coal-fired power being responsible for almost a fifth of Pakistan’s total emissions in 2019 (CREA 2021).4 In addition to their impact on the climate, these power plants also emit a range of pollutants, including sulfur dioxide, nitrogen oxides, and particulate matter, and coal mining and transportation can have negative impacts on local ecosystems and communities. Coal-fired power plants pose a threat to long-term capacity payments, and their potential to become stranded assets is further exacerbated by the lack of holistic risk assessment that incorporates climate change risks in their impact assessment.

There is a strong economic case of transitioning away from coal to cleaner and more sustainable energy sources, as the transition not only merits environmental benefits but also economic ones such as promoting the development of new economic opportunities in the clean energy sector. This shift can create new jobs, reduce dependence on imported fossil fuels, and support sustainable economic growth and development in Pakistan. Furthermore, the developing countries like Pakistan face shortage of capital to finance the energy transition.

In line with the above, the Sustainable Development Policy Institute (SDPI) aims to organise a symposium on clean energy which will explore the opportunities and prospects of an accelerated clean energy transition, both in the context of the Asian Development Bank’s (ADB’s) Energy Transition Mechanism (ETM) and other mechanisms such as the prospects for repurposing or retrofitting coal-fired power plants under different scenarios, keeping in mind Pakistan’s energy needs and base load requirements. Moreover, it will highlight the opportunities to foster Just Energy Transition Partnerships (JETPs) to finance Pakistan’s drive towards decarbonisation and climate goals, while ensuring a just and inclusive approach to the transition towards clean energy. The main objectives of the symposium are to:

1). Critically explore the pre-feasibility of ADB’s ETM in terms of energy and economic security, environmental impacts and just transition.

2). Evaluate the potential impact of ADB's ETM in accelerating Pakistan's transition towards clean energy and identify opportunities for collaboration and partnership with relevant stakeholders.

3). Share lessons learned and best practices from other countries that are undergoing a similar transition under ADB's ETM, and identify relevant insights and strategies that can be adapted to Pakistan's context.

4). Assess the feasibility of alternative strategies, technologies, and pathways for accelerating the transition away from fossil fuels in Pakistan, and identify the most promising options based on their scalability, affordability, and environmental and social impact.

5). Identify the different kinds of JETPs and Energy Transition financing options globally and highlight the on-going projects.

6). Explore the prospects of JETPs for a just and inclusive energy transition in Pakistan.

Webinar Session 1:

Exploring the ADB’s Energy Transition Mechanism (ETM) and its potential impacts on clean energy uptake in Pakistan The session aims to explore the potential for an accelerated clean energy transition under ADB’s ETM. The ETM aims at accelerating the transition from coal-based power plants to clean energy in ADB’s developing member countries (DMCs) such as Pakistan. The ETM will support projects that reduce greenhouse gas emissions from coal-fired power plants, increase the share of clean energy, help DMCs develop policies and regulations to transition to cleaner energy in a just manner, and to leverage public and private investments to finance country-specific ETM funds and retire coal power assets earlier than their current schedules.

The discussion in the session will revolve around:

1). Highlighting the potential opportunities and challenges of transitioning away from coal-based power plants in developing member countries like Pakistan, and the role ETM can play in this clean energy transition.

2). Specifying what other mechanisms in addition to the ETM can be utilized for this transition.

3). Analysing the strategic alignment of ETM with Pakistan's national goals for energy security and access, just economic development, and climate change, and the implications for the above in case the ETM is implemented.

4). Sharing lessons and best practices from the implementation of the ETM in other countries such as Indonesia and the research and capacity gaps that need to be addressed to analyse the efficacy of the ETM as a transition tool.

Webinar Session 2:

Prospects of Just Energy Transition Partnerships (JETPs) for green and inclusive development in Pakistan The session aims to explore the feasibility and prospects of JETPs for a just and inclusive energy transition in Pakistan in terms of financing and technical opportunities. JETPs are a financing cooperation mechanism that aim to support emerging economies’ transition away from fossil fuels and towards clean energy, while ensuring the transition is equitable across gender, generations, and social strata. This takes into account the needs and aspirations of different social groups and promotes local ownership and participation and requires addressing potential social and economic impacts of the transition.

The discussion in the session will revolve around:

1). Highlighting examples of JETPs that exist globally, and how financing opportunities under JETPs can be utilized to support Pakistan's energy transition and promote economic development.

2). Identifying specific strategies based on successful JETPs in other countries that can be adopted in Pakistan to ensure a just and inclusive transition towards clean energy.

3). Utilising JETPs to effectively address the needs of marginalized communities and vulnerable groups during the transition to clean energy.

4). Highlighting specific challenges that may arise in implementing JETPs, and how these challenges can be overcome.