According to a report by the Asian Development Bank (ADB) published on Sunday, Pakistan need about $390 billion in supplementary investments by 2050 to effectively transition to a low-carbon economy.
This substantial investment is essential to fulfill the nation’s international obligations on carbon emission reductions, especially through efforts like the coal-to-gas transition in the industrial sector, electrification of transportation, and substituting gas with electricity for cooking.
The research, entitled Pakistan Low-Carbon Energy Outlook and Technology Road Map, emphasizes that these energy growth initiatives will necessitate significant financial support.
The investment allocation indicates that hydropower generation will necessitate around $153 billion, nuclear power $103 billion, wind power $62 billion, and solar energy $51 billion.
Furthermore, $22 billion is required for transmission and distribution infrastructure to maintain a reliable electricity grid.
These investments supplement those necessary for the transportation and residential sectors, which are essential for attaining energy efficiency objectives. The ADB recognizes the challenges in obtaining such an ambitious investment program, as government finance will be inadequate, necessitating substantial financial support from both domestic and international private sectors. This may encompass equity financing, bank loans, bond offerings, and international financial aid.
The Manila-based loan organization remarked, “Attaining this level of funding will be difficult,” emphasizing the necessity for significant reforms to draw investment. The paper advocates for regulatory reforms, strong policy actions, and thorough planning to establish an investment environment favorable to this level of capital.
To achieve the ambitious objective of emission reduction, Pakistan needs execute a number of legislative actions that connect private sector incentives with environmental objectives.
The research emphasized the necessity of a conducive regulatory environment, coupled with an organized project preparation and execution system, to satisfy the demands of multilateral and bilateral donors.
The ADB’s analysis reveals that the low-carbon scenario will substantially diminish Pakistan’s greenhouse gas emissions, forecasting a 23% decrease by 2030 and a 36% reduction by 2050, relative to the business-as-usual trajectory.
The essential factor in attaining these reductions will be the shift to cleaner energy sources, including natural gas and renewables, especially within the industrial and transportation sectors.
Pakistan, among the most susceptible nations to climate change, urgently requires a balance between economic development and environmental sustainability.
The government has pledged to decrease national greenhouse gas emissions by 50%.
