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Pakistan’s Path To Industrial Decarbonization Navigates Through Emerging Tech, Financial Instruments: Experts
Muhammad Irfan Published December 25, 2024 | 08:46 PM
A roundtable discussion on the "Business Case for Decarbonization in Pakistan" hosted by the Sustainable Development Policy Institute (SDPI) emphasized the critical need for industrial decarbonization to address the nation's economic, energy, and environmental crises that was possible through ensuring emerging technologies and financial instruments accessible to developing nations like Pakistan
ISLAMABAD, (UrduPoint / Pakistan Point News - 25th Dec, 2024) A roundtable discussion on the "Business Case for Decarbonization in Pakistan" hosted by the Sustainable Development Policy Institute (SDPI) emphasized the critical need for industrial decarbonization to address the nation's economic, energy, and environmental crises that was possible through ensuring emerging technologies and financial instruments accessible to developing nations like Pakistan.
The event, moderated by Saleha Qureshi, Lead of the Pakistan Industrial Decarbonization Initiative at SDPI, brought together experts from various sectors to explore viable solutions to mitigate Pakistan’s vulnerability to climate change while boosting its economic resilience, said a press release.
In his opening remarks, Dr. Khalid Waleed, Energy Expert at SDPI, pointed out that Pakistan’s economy is trapped in a cycle of low productivity, trade deficits, and unsustainable energy costs. He stressed the urgency of shifting from conventional approaches to sustainable solutions, highlighting the potential risks posed by international regulatory mechanisms like the Carbon Border Adjustment Mechanism (CBAM). Pakistan’s textile sector, in particular, faces significant challenges under these global policies, which could undermine competitiveness unless the industry adapts to decarbonization.
Farrukh Ahmad, Deputy General Manager ESG at the Pakistan State Oil (PSO), shared insights into how his organization is leveraging decarbonization as an opportunity rather than a challenge. PSO, which holds half of the country's oil storage, is actively working on energy efficiency, renewable energy initiatives, and the development of electric vehicle (EV) charging infrastructure to reduce carbon footprints. He noted PSO's commitment to leading the energy sector towards a cleaner future.
Hammad Bashir, Former NTE, Private Financing Advisory Network (PFAN), emphasized that decarbonization should not be viewed as mere "greenwashing" but as a genuine business case. He acknowledged the challenges faced by Pakistan's industries but highlighted the importance of creating tailor-made solutions that align with both environmental goals and economic realities.
Rt. Hon. Benjamin James Matthew Williamson emphasized the challenge of striking a balance between legislative efforts and incentives in driving sustainability and decarbonization. According to Mathew, achieving these goals requires capacity building at multiple levels, as well as the integration of strategies on a broader scale.
This approach unites sectors like agriculture, with diverse data sets across different tiers of emission scopes.
He also highlighted that Pakistan has a significant opportunity to become a leader in industrial decarbonization. By ensuring the necessary infrastructure and focusing on education, the country can position itself at the forefront of this critical global movement. Mathew believes these efforts will pave the way for Pakistan’s economy to follow an upward trajectory, supporting sustainable growth and innovation
Ms. Marianne Tan, Associate Director, Policy & Strategy, South Pole reinforced the importance of carbon markets in the decarbonization process, proposing a win-win solution where industries reduce emissions and trade carbon credits. She also advocated for a transition from coal to renewable energy, citing global examples such as the Rockefeller Foundation’s Coal-to-Clean initiative.
Dr. Hina Aslam, Visiting Fellow, SDPI addressed the broader implications of decarbonization, stressing that even developed countries are grappling with the challenge of transitioning to low-carbon industries. She pointed to sectors like steel and cement as critical areas where emissions reductions can be achieved through innovative production processes.
Mr. Ubiad ur Rehman, Head of Energy Unit, SDPI stressed the critical role the CCUS technologies play in the decarbonization agenda and also highlighted the research study on the Role of CCUS in Cemnet Decarbonization in Pakistan.
The discussion also touched on the broader context of climate vulnerability in Pakistan, with Anab Mehmood, Industrial Decarbonization expert highlighting the $29 billion in economic losses caused by the 2022 floods. She emphasized that companies must adopt decarbonization strategies to remain competitive and comply with international regulations such as CBAM.
Throughout the dialogue, experts agreed that financing remains a major hurdle for Pakistan's decarbonization efforts. . Shakeb Elahi, SDPI Advisor, concluded that decarbonization presents both a challenge and an opportunity for Pakistan to transform its energy grid and industrial landscape.
The roundtable underlined the necessity of combining legislative action with market-driven incentives, ensuring that Pakistan can transition to a low-carbon economy while safeguarding its industrial competitiveness in the global market.
